Flood deliberates course on exiled Kennedy

THE Flood Tribunal is expected to decide this week on what legal action, if any, it intends to take against the tax exile businessman, Jim Kennedy over his refusal to appear at the inquiry as a witness.

Mr Kennedy, who is based in the Isle of Man and Gibraltar, has repeatedly ignored summons to attend the Tribunal to answer questions about his alleged role in attempts to bribe politicians.

The political lobbyist, Frank Dunlop has told the inquiry that the 55-year-old reclusive millionaire paid him £25,000 in 1992 to give to councillors in return for their support of a motion to rezone lands owned by Mr Kennedy’s company, Paisley Park Investments in Carrickmines, Co Dublin.

Mr Kennedy is also under investigation by the Criminal Assets Bureau and it is likely that he could face arrest if he returns to Ireland. He notified the Tribunal last year that he had renounced his Irish citizenship, although his wife and children continue to live in Dublin.

The inquiry is also facing a fresh obstacle after another offshore company, which is believed to be ultimately owned by Mr Kennedy and solicitor, John Caldwell, was dissolved by the British authorities earlier this month.

Jackson Way Properties was formally struck off by UK Register of Companies over its failure to file accounts within statutory time limits. However, most observers believe the move was part of a deliberate strategy by Jackson Way in relation to its involvement in a number of separate proceedings in Ireland.

Last month, Tribunal chairman, Mr Justice Feargus Flood accused Jackson Way of obstructing the progress of the inquiry after Dublin solicitor, Stephen Miley made the surprise announcement that he had ceased to represent the company.

Any party which is ruled to have impeded the work of the Tribunal could be liable for a legal bill that could run into millions of euro.

Despite facing the possibility of being found not to have co-operated with the Tribunal, Jackson Way could now argue that it is not liable for any future costs of the inquiry as it is no longer a legal entity.

The company is also currently at the centre of a 47m compensation claim against Dun Laoghaire-Rathdown Co Council after part of its lands in Carrickmines was compulsorily acquired for the construction of the final stage of the M50 motorway. A High Court-appointed independent arbitrator is expected to give his decision soon on what is the value of the land.

However, it is believed that the local authority will withhold the payment of any compensation award, while the company remains struck off.

A Birmingham estate agent, Alan Holland told an arbitration hearing last year that he was the sole director and shareholder of Jackson Way. However, the Tribunal has heard evidence that Mr Kennedy and Mr Caldwell were the ultimate beneficial owners of the company.

According to legal experts, Mr Holland could be held personally liable for any costs, while Jackson Way remains struck off.

The Tribunal, which resumes at Dublin Castle tomorrow, will also hear further evidence from Mr Dunlop about his claims that he paid over £30,000 to politicians in return for their support of rezoning of lands in Carrickmines which belonged at separate times to Paisley Park and Jackson Way. The former Fianna Fáil TD, Liam Lawlor, has also been linked with both companies.