Witness alleges plot to expose tax claim

Former Fianna Fáil press secretary Frank Dunlop plotted with Liam Lawlor and others to ensure the tax problems of developer Tom…

Former Fianna Fáil press secretary Frank Dunlop plotted with Liam Lawlor and others to ensure the tax problems of developer Tom Gilmartin became known to the press, it was claimed at the Mahon tribunal yesterday.

In his fifth day of evidence to the tribunal, Mr Gilmartin told counsel Pat Quinn SC that he was told by an anonymous caller that Mr Dunlop and Mr Lawlor plotted in the office of architect Ambrose Kelly with rival developer Owen O'Callaghan to get Mr Gilmartin "screwed by the revenue".

He explained how he was in negotiations with the British Inland Revenue in relation to his tax affairs and he felt obliged to tell his bank, AIB, that they were claiming £700,000.

He said that within a short space of time of informing the bank, inland revenue increased their demand to £6.8 million plus penalties.

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An emotional Mr Gilmartin recounted an incident in May 1991, in which one of his children ran screaming to him as he worked in his garden in his home in Luton, and told him men had broken into the house and had knocked down Mrs Gilmartin.

"There was a whole crowd of journalists and cameras and what have you all around the front of the house and in the drive," he said. "They had some information that was given to them, fed to them about my tax fraud, as they understood."

He said there were also two people from British Inland Revenue, who came back the following day to talk to him.

One man, a Mr Lyons, apologised for what had happened afterwards and said he did not have anything to do with the media presence. Mr Lyons also told him he got information from Dublin about his tax affairs, Mr Gilmartin said.

He claimed that Mr Dunlop was on Mr O'Callaghan's payroll and that he fed false information to every Sunday newspaper in England, as well as the Luton News and the Sligo Champion, and caused Mr Gilmartin "untold damage".

Mr Quinn highlighted a statement by Mr Dunlop to the tribunal, in which he said that he had only mentioned Mr Gilmartin's tax problems to people in Ireland who inquired about him. However, Mr Gilmartin said he was told by two journalists that Mr Dunlop admitted he owed Mr Gilmartin an apology in relation to the matter.

"They said to me that Frank Dunlop wanted to apologise to me and I said there is no way I will accept an apology from that scumbag," Mr Gilmartin said.

In the spring of 1991, Mr Gilmartin was coming under increased pressure from AIB bank to repay the £9 million he owed them or to agree new terms. The issue was complicated by a need to get the Quarryvale land rezoned for town centre development.

Cllr Colm McGrath had agreed to table a motion for rezoning the land as part of a review of the Dublin development plan.

But on the last day for tabling motions, February 15th, 1991, Mr McGrath had phoned him and told him he was being prevented from doing so by AIB and Mr O'Callaghan.

"I asked him what the f . . . they had to do with it," Mr Gilmartin said. "And he says 'well, that's the way it is'."

Mr Gilmartin said he also received phone calls from Cllr Seán Gilbride, Mr O'Callaghan and the bank.

He told the tribunal that he was threatened with "everything bar execution" before he agreed to sign the new agreement on the night of February 15th.

It ensured that Mr O'Callaghan would become a shareholder in Mr Gilmartin's company, Barkhill Ltd, which held the Quarryvale property.

Mr McGrath also tabled the motion which would allow for the rezoning of the Quarryvale lands on the same night.

Fiona Gartland

Fiona Gartland

Fiona Gartland is a crime writer and former Irish Times journalist