'You could end up in the Liffey for that statement'

KEY witness Tom Gilmartin received a death threat in the corridors of Leinster House, it emerged during a dramatic first day of new hearings at the Mahon Tribunal.

A mystery man who demanded £5 million from the County Sligo businessman told him he could "end up in the Liffey" after Mr Gilmartin robustly rejected the demand.

Mr Gilmartin's account of the threat was revealed during the opening statement of a new module of the tribunal yesterday, inquiring into his allegations surrounding his attempts to develop massive retail complexes in Bachelor's Walk and Quarryvale (now Liffey Valley) in the late 1980s.

Tribunal lawyer John Gallagher SC referred to a meeting which Mr Gilmartin claims he held with senior Fianna Fáil ministers in Leinster House in January 1989.

Mr Gilmartin has told the tribunal that, after the meeting, he was approached by a man who he did not recognise who demanded £5 million from him and then passed him a piece of paper, containing details of a bank account in the Isle of Man.

"I rejected the man's approach in colourful terms. I said to the man: 'You make the f****ing Mafia look like monks'," said Mr Gilmartin.

He alleges the man then said to him: "You could end up in the Liffey for that statement."

The tribunal yesterday outlined Mr Gilmartin's allegations about his dealings with politicians and officials.

It emerged that former Dublin West TD Liam Lawlor may have been paid a total of £135,000 by Mr Gilmartin and Arlington, the British property company which was backing the scheme. However, Mr Gallagher later pointed out that Mr Lawlor would say the total was less than that.

Other core allegations to be examined during this module, expected to last at least a year, include the payment of £50,000 to former European Commissioner Pádraig Flynn demands made of Mr Gilmartin to pay £100,000 to be split between George Redmond and Liam Lawlor and further demands from Dublin councillors for £100,000.

Mr Gilmartin claims that on the day he received the threat in early 1989, he also met senior Fianna Fáil ministers in Leinster House including then Taoiseach Charles J Haughey; Albert Reynolds; Bertie Ahern, Ray Burke; Mr Flynn; Mary O'Rourke; Gerry Collins and Mr Lawlor. All have told the tribunal they have no recollection of the meeting except Mrs O'Rourke, who has recalled a brief meeting attended by the senior ministers.

Mr Lawlor, in a lengthy response, described the allegations as "false, outrageous and unsubstantiated".

Mr Flynn also attended yesterday's hearing, but made no comment. Tribunal lawyers said that he will say he made clear that the £50,000 payment had "no strings attached".

Mr Gilmartin began his evidence shortly before 3pm. In a new disclosure, he revealed he met former EU Commissioner and then Minister for Finance Ray MacSharry twice in 1987 in relation to his proposals. It seemed the tribunal was unaware of the first meeting until yesterday.

Mr Gallagher said Mr MacSharry had told tribunal lawyers he recalled no such meetings. However, Mr Gilmartin's account seems to be corroborated by a solicitor's memo written in December 1987, which refers to the alleged meeting.

It also emerged yesterday that Mr Gilmartin was granted immunity from prosecution by the DPP in return for co-operating fully with the tribunal.

His evidence continues today.