Statement puts Lawlor at centre of scandal

THE late Liam Lawlor has been placed at the heart of planning corruption in Dublin after the Mahon Tribunal heard yesterday that he was paid at least £153,000 in bribes by Frank Dunlop to support the controversial Quarryvale development in west Dublin.

Two senior Fianna Fáil figures Dublin North TD, GV Wright and Senator Don Lydon were also among 14 members of Dublin County Council in the early 1990s named by Mr Dunlop as receiving corrupt payments. Both had also been linked with allegations of seeking money for their votes on other controversial planning issues in earlier tribunal hearings.

Yesterday's opening statement on the Quarryvale II module read out by tribunal barrister Patricia Dillon SC revealed that the PR consultant had spent a total of £232,000 from his "war chest" of secret bank accounts on bribing politicians.

All 14 councillors deny the allegations. However, many admit receiving payments from Mr Dunlop but insist they were legitimate political donations.

The inquiry has established that Mr Dunlop withdrew large amounts from these accounts during two crucial rezoning votes on Quarryvale by Dublin County Council in May 1991 and December 1992.

Mr Dunlop was hired by Cork-based property developer Owen O'Callaghan, who got involved in developing Quarryvale after its original owner, Tom Gilmartin, ran into serious financial difficulties.

Mr O'Callaghan, who is currently involved in a High Court action to prevent the tribunal investigating his affairs, has consistently denied knowledge that Mr Dunlop was bribing politicians.

The tribunal heard that the millionaire businessman admitted donating £104,700 to councillors in Dublin around the same time for election purposes.

Mr Dunlop and his companies were paid around £1.8 million by firms linked with Mr O'Callaghan between 1991 and 2001.

Ms Dillon said £270,000 paid to Mr Dunlop by Mr O'Callaghan shared some unusual characteristics which were not easily explained. She pointed out that the tribunal had not been given "any compelling reason" for £170,000 of these funds.

Mr Lawlor, who was killed in a car accident in Moscow last month, was exposed as a key player in efforts to rezone Quarryvale despite losing his council seat in 1991.

The tribunal believes he was paid a total of £183,000 by both Mr Dunlop and Mr O'Callaghan in a combination of bribes and consultancy fees. However, Mr Lawlor, prior to his death, acknowledged receiving only £85,000 from the pair.

AIB could be facing more bad publicity as its role in Quarryvale is also under investigation. The tribunal will examine allegations that the bank put Mr Gilmartin under pressure to involve Mr O'Callaghan in the project because of his political contacts.