Land deal probe to quiz council official
Cork County Council is also looking at records of other land deals as part of its probe, which is expected to take several weeks.
It is understood two auctioneers involved in the deal have already been interviewed by Cork County Council as part of its own investigation.
The probe was sparked after four complaints were made about a €11.6 million purchase by the local authority of 20 acres of land at Deerpark, Charleville.
The land was sold by Pushkin Developments to two bankers for €8m. Pushkin later found out that even before the deal was done, the bankers were in negotiations with the local authority to sell it on for another €3.6m. The council is aiming to find out why it didn’t purchase the land two years earlier, when it could have been bought for €4m.
The site was sold twice before it agreed to purchase it from the bankers.
A deposit was paid by the local authority, but they refused to pay the balance after receiving complaints. The bankers are now taking them to the High Court for the rest of the money.
Meanwhile, Minister of State at the EnvironmentDepartment, Batt O’Keeffe, confirmed yesterday he had received two letters, only one of which was signed, complaining of the deal. He had passed them to his department officials.
“I also made contact with the council. It’s a matter that is being handled by the county manager and it is appropriate that it should be him who is dealing with it,” he said.
In a climate of rising property prices, the selling on of property by a buyer to another party before the first deal is fully complete is not uncommon.
However, the question in this case is whether the transactions were aided by internal information.
County Cork Mayor Cllr Michael Creed said his concern is to ensure the taxpayer is not shortchanged.
A council spokeswoman said it would be making no comment at this time. Gardaí are also carrying out an investigation.
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