Developer’s defeat means Ahern looks set to testify

TAOISEACH Bertie Ahern is facing a fraught canvass as he is likely to have to testify before the General Election at the Mahon Planning Tribunal into payment allegations.

A central allegation is that Mr Ahern — while Minister for Finance — received payments to block a tax break for a shopping development in west Dublin in the early 1990s.

His appearance before the tribunal was made possible by the Supreme Court yesterday rejecting developer Owen O’Callaghan’s bid to stop the tribunal’s latest probe.

Former British property developer, Sligo-born Tom Gilmartin, was involved in a project with Cork-based Mr O’Callaghan to develop a shopping centre at Quarryvale in west Dublin.

Mr Gilmartin is expected to tell the tribunal — which begins its Quarryvale Two module on April 30 — how Mr O’Callaghan told him he made two payments totalling £80,000 to Mr Ahern.

The purpose of the alleged payments was to block tax designation for the rival Blanchardstown Shopping Centre being developed by Green Property.

Mr Ahern has said the allegations are “utterly false” and that he never received money from Mr O’Callaghan, either directly or through intermediaries.

Mr O’Callaghan has strongly denied he made any such payments to Mr Ahern.

After the High Court rejected Mr O’Callaghan’s challenge last October, he appealed it to the Supreme Court.

The Quarryvale Two module had been due tobegin on January 16.

In an opening statement at the start of the inquiry’s Quarryvale investigations last year, tribunal lawyer Patricia Dillon SC said Mr Gilmartin had claimed Mr O’Callaghan had informed him nearly £80,000 had been paid to Mr Ahern.

The tribunal quoted Mr Gilmartin as saying he was told the money had been paid in two separate amounts, one of £50,000 and the other £30,000.

Mr Gilmartin said he was informed that Mr Ahern, who was then Minister for Finance, had been instrumental in blocking a tax break for the rival Blanchardstown centre.

Strongly denying this allegation, Mr Ahern reminded the tribunal he had successfully taken a libel action against Denis “Starry” O’Brien who falsely alleged he had given a £50,000 cheque to Mr Ahern on behalf of Mr O’Callaghan.

Mr Gilmartin will also testify that at a meeting attended by himself and Mr O’Callaghan, the Cork developer said he had heard “from the horse’s mouth” that Blanchardstown was definitely not getting tax designation.

When Mr Gilmartin asked what he meant, Mr O’Callaghan allegedly replied Mr Ahern had given this assurance.

Ms Dillon said Mr O’Callaghan did not want Blanchardstown to receive tax designation status and he had let it be known in political circles.

The partnership between Mr Gilmartin and Mr O’Callaghan later ended in bitterness.

The tribunal has heard claims that lobbyist Frank Dunlop made corrupt payments totalling nearly £225,000 to 14 politicians to secure the rezoning of the Quarryvale development.

The Liffey Valley Shopping Centre was subsequently built on the site.

Two former Taoisigh, Albert Reynolds and John Bruton, along with former EU commissioner Padraig Flynn are among 78 witnesses to be called for the Quarryvale Two module.