Mr James Stafford, a co-director of Century Communications Ltd, was yesterday accused of misleading the Flood tribunal by giving evidence that he did not learn of the £35,000 payment to the former minister for communications, Mr Ray Burke, until two years later.
Mr Patrick Hanratty SC, for the tribunal, said it was "screamingly obvious" that Mr Stafford misled the tribunal team in a private interview on May 15th of this year when his statement differed from his evidence.
Mr Hanratty has also claimed that Century Radio directors fabricated expenses to recoup the £35,000 payment to Mr Burke. Mr Stafford denied the claims and said he had had no involvement in the payment.
At the interview in May, Mr Stafford said he first "actually" became aware of the payment as a result of media reports on the tribunal proceedings.
In evidence yesterday he said he first learnt of the payment on March 20th 1991 during a meeting with Mr Barry, who was seeking remuneration for the payment and a £5,000 donation to Fianna Fail. Mr Stafford said it was the first he had heard of the payment, and he told Mr Barry he wanted nothing to do with it.
Mr Hanratty said the tribunal team had been deliberately misled into thinking he first learned of the payment this year from the press. "I have to put it to you that you lied," he said.
Mr Stafford said the difference between the evidence and interview was that it was only after reading newspaper reports that he believed the payment had occurred. "I think you have misinterpreted that deliberately," he added.
He said he had not "knowingly or voluntarily" contributed to the payment and denied there was any prior agreement between him, Mr John Mulhern, a partner in Century, and Mr Barry, a co-director, for it to be made. Mr Barry said he made the £35,000 payment to Mr Burke in May 1989.
Mr Hanratty said Mr Barry had told the tribunal that all three partners agreed the payment would be made to Mr Burke. Mr Mulhern had given a statement saying he did not know of the payment before it was made but learnt of it shortly afterwards and definitely before the end of 1989.
Earlier, the tribunal heard about the disputes over money between Mr Stafford and Mr Barry after London's Capitol Radio had acquired a major stake in the company and later after the company had gone into liquidation.
Mr Hanratty produced documents showing Mr Stafford helped Mr Barry to procure £40,000 from Capitol Radio for management fees of £1,600 per week for 25 weeks and stressed that no claim had previously been made to Century.
"It was a complete and utter fabrication to justify £40,000," said Mr Hanratty.
Mr Stafford said he understood Mr Barry had legitimately been owed the money and believed Mr Barry would repay a £28,986 loan, but this did not occur. Mr Stafford later instigated legal proceedings against Mr Barry in an attempt to recoup the money.