A close associate of Mr Denis O'Brien asked a senior executive of GE Capital Woodchester Bank to meet the former Fine Gael minister, Mr Michael Lowry, in the summer of 1999 to give him financial advice, it emerged at the tribunal yesterday.
The executive, Mr Michael Tunney, said he met Mr Lowry at the request of Mr Aidan Phelan, an accountant and financial adviser to Mr O'Brien. Mr Tunney said Mr Phelan was a customer of the bank with whom he himself had a close relationship. He met Mr Phelan and his business partner, Ms Helen Malone, in a hotel with Mr Lowry.
Questioned by counsel for the tribunal, Mr Jerry Healy SC, about the purpose of the meeting, he said Mr Lowry had a refrigeration company which was profitable but was under pressure, particularly because it had lost Dunnes Stores business.
"He was looking at ways of extricating himself from that. I knew quite a few people in the business community who may well be interested in something like that.
"Also being discussed was his own financial situation and the effects of everything that was going on around him," he said.
Mr Tunney said his advice at that meeting, which was his only meeting with Mr Lowry, was to sell up. "I was surprised just at the difficulty the man was in from every aspect," he said.
Mr Healy asked how Mr Phelan explained the role he was performing in relation to Mr Lowry's affairs. Mr Tunney replied: "Basically he had this client and he was wondering if I could help in some way."
Mr Tunney said he understood Mr Lowry needed the advice of an experienced banker and there was no question of him seeking a loan at that time. He met him as a "favour" and did not charge Mr Lowry for the advice.
The tribunal has already heard that a loan of £420,000 sterling was given by Mr Tunney in December 1999 to Catclause Ltd, a British-registered company of which Mr Lowry and his daughter, Lorraine, were directors.
Questioned by Mr Healy about this, Mr Tunney said it was Mr Phelan who approached him for the loan and he was adamant that the name of Mr Lowry was never mentioned. He believed he was giving the loan to Mr Phelan.
However, Mr Phelan will tell the tribunal he approached the bank on behalf of Mr Lowry and when he told Mr Tunney who the shareholders in Catclause were, namely Mr Lowry and his daughter, it transpired that a guarantor would be required to support the loan application.
Mr Tunney said Mr Phelan offered the guarantor without him asking for it.
He also said Mr Phelan told him the loan was sought to purchase a 1.6-acre development site in Manchester. Mr Phelan informed him the site was to be purchased by Catclause Ltd, a company established specifically to acquire the development site. It was planned to obtain permission for the development of the site and then dispose of it.
Mr Tunney said he understood Catclause Ltd was owned or controlled by Mr Phelan. He only became aware that it wasn't earlier this year.
He was told by Mr Phelan that the loan would be guaranteed by Mr John Daly, a Cork property developer. Mr Tunney telephoned Mr Daly and he confirmed he would be the guarantor. The money was transferred to the solicitors for Catclause Ltd on December 21st, 2000.
The loan was due to be repaid by July 31st, 2001, but this did not happen. It was repaid earlier this year after the matter was brought to the attention of the tribunal.