The financial controller of JMSE incorrectly told the Revenue Commissioners that Mr James Gogarty had "waived" his right to commission on an ESB payment made to the company which he helped recover, it was claimed at the planning tribunal yesterday.
Mr Gogarty's solicitor, Mr Gerry Sheedy, of McCann FitzGerald, said Mr Roger Copsey had initiated correspondence with the Revenue Commissioners without Mr Gogarty's knowledge. He said he was "worried" the Revenue might believe Mr Copsey's "simply incorrect" statement about the ESB payment.
Mr Gogarty helped JMSE to recover the sum from the ESB for work done by the company at Moneypoint power station in Co Clare. Mr Gogarty told Mr Sheedy he had an agreement that he would get 50 per cent commission on the payment for this work.
The tribunal chairman, Mr Justice Flood, said he hoped to get an "explanation" for the letter, which he described as a "unique statement". In response to this request for an explanation, counsel for the Murphy group, Mr Garrett Cooney SC, said tribunal counsel Mr Patrick Hanratty SC was giving "very selective quotations". Mr Sheedy also claimed that when he asked JMSE for P60 forms for Mr Gogarty from JMSE, he was issued with P60s from companies for which he had never worked. Throughout late 1989 he had represented Mr Gogarty in his attempts to get a £300,000 pension and £210,000 lump sum from JMSE.
Mr Sheedy read out several letters exchanged between May and November 1989 between himself and Mr C.R. Oakley, from a London firm retained by JMSE. According to the early letters, agreement on Mr Gogarty's pension and other entitlements did not receive the approval of Mr Joseph Murphy snr. On September 29th Mr Gogarty reached final agreement with the ESB for a payment of £560,000 plus VAT (£700,000) for the Moneypoint work. On October 3rd, Mr Sheedy said, a meeting was held with Mr Copsey and Mr Oakley in McCann FitzGerald's offices, where the terms of Mr Gogarty's agreement were signed.
Mr Sheedy said Mr Copsey then told him the agreement was dependent on approval from Mr Joseph Murphy snr. In light of this, he said, several days later he advised Mr Gogarty to let McCann FitzGerald issue an invoice to the ESB for the money, so Mr Gogarty would be "in a position of strength" over the funds.
Sometime after October 11th Mr Sheedy received a cheque from the ESB which was lodged to a bank account under the name "McCann FitzGerald - Re: JMSE Ltd". After further correspondence, Mr Sheedy received a letter from Mr Oakley on November 3rd, in which Mr Oakley said there should be "no further delay" in paying the £700,000 to JMSE's own bank account.
On November 9th Mr Sheedy sent a letter to Mr Oakley saying that JMSE should already have done Mr Gogarty's tax deductions, and that there had been "inactivity and a lack of intent by your clients (JMSE)".
Asked by Mr Hanratty what his concern was, Mr Sheedy said it was to "make sure the commission would be paid in full" to Mr Gogarty.