Mystery payments surround rezoning

MONARCH Properties made mystery payments of £21,500 around the time it secured vital rezoning of its south Dublin lands, the Mahon Planning Tribunal heard yesterday.

The series of payments, in cheques made out to cash and bank debits, were listed in the development company records as “general promotions” connected with Monarch’s Cherrywood housing project.

Dublin county councillors voted on November 11, 1993, to increase the zoning density on Monarch lands — from one house per acre to four houses — around the time these cash payments were made, tribunal lawyer Pat Quinn SC said.

Resuming his evidence, former Monarch director Eddie Sweeney could offer no explanation for the destination of these funds and said he could not speculate how and what happened.

At one stage the unexplained payments were included under the heading of community and public relations expenses, according to documents shown to the tribunal.

Monarch later attempted to seek payment of the entire £21,500 from its joint venture partners, London-based GRE Properties. Former Monarch executive Richard Lynn, who requested the payment, termed the item a “special management fee”.

On August 3, 1994, GRE said it was refusing to meet the bill. “I cannot agree to pay this until satisfactory invoices are produced,” an executive wrote back. Mr Sweeney, who led the Cherrywood project, said he could not say if the invoices requested were produced.

The tribunal had been told Monarch and GRE had undertaken to share agreed third party costs connected with the Cherrywood development on a 50:50 basis.

Replying to Monarch lawyer Mark Sanfey SC, Mr Sweeney said he was not aware when he first met lobbyist Frank Dunlop that his modus operandi was to bribe councillors. And he certainly did not encourage him to bribe councillors and neither did Monarch executives know he was bribing councillors.

Aidan Redmond SC, for Mr Dunlop, suggested Mr Sweeney had tried to distance himself from his client as much as he could when it emerged Mr Dunlop had made corrupt payments.

Mr Sweeney denied he and Mr Dunlop had more detailed conversations about the progress of Cherrywood than he was telling the tribunal.

Judge Gerald Keys asked Mr Sweeney could he explain why any businessman in his right mind would pay out a success fee prematurely. Records show Mr Dunlop got his £50,000 success fee two months before the rezoning vote was taken.

Monarch managing director Paul Monahan — who was threatened with High Court proceedings for giving evasive answers — is set to return to give further testimony to the tribunal.

Mark Sanfey SC said Mr Monahan would furnish a statement shortly and would be available to the tribunal next week.

Last week chairman Judge Alan Mahon said the tribunal was not satisfied Mr Monahan had given the full and frank information legally required of him.

The tribunal is investigating the rezoning of 236 acres of Monarch lands at Cherrywood in south Dublin during the 1990s. Monarch made payments totalling over £500,000 in that connection; a substantial amount of the money was paid out in political donations the company listed as expense costs.

The tribunal resumes next Tuesday.