Extra payment 'was essential', IRA trial hears

A witness told a Special Criminal Court trial today that he believed an extra payment of €25,000 demanded after a threat was made to his club was "essential to keep the club open".

Dublin businessman Mr Gerard Cosgrove was giving evidence on the sixth day of the trial of Mr Martin Kelly (aged 47) a former Irish soldier, of Westpark, Artane, Dublin, accused of membership of an illegal organisation styling itself the Irish Republican Army, otherwise Oglaigh na hEireann, otherwise the IRA, on July 29, 2002.

A second man accused, Mr William Clare (aged 35) changed his plea to one of guilty on Wednesday after a key witness, Mr Pat Byrne of Protocol Contract Services, broke down in court and said he was intimidated and threatened by Mr Clare over the past year.

Mr Cosgrove was a former business partner of Mr David Mooney of ‘Bunnies’ lap dancing club in Temple Bar last year.

He told how on the day the club opened he received a phone call from Mr Mooney claiming that "a threat was made that if the club opened people would be hurt. But he said, 'don’t worry, there’s a meeting taking place in one hour', I thought there was a potential threat to the staff," Mr Cosgrove said.

He told the court he "wasn’t impressed" when told at the meeting about a further payment of €15,000 for "additional security" to Protocol Contract Services.

"I wasn’t impressed to be honest. We were paying them €100,000 per annum already and now there were additional charges. I was told €15,000 was the cost of additional security," he said.

He then told the court that at the same meeting, he was then informed the cost would be €25,000 for security for clubs Mr Mooney wanted to open in Monaghan and Waterford.

"David Mooney was having a conversation with Billy Clare alone. I was the landlord and I just wanted the club to open. David Mooney wanted me there on his side," he told the court. When asked why he agreed to the extra payments, Mr Cosgrove said he "had to take action and make sure the club opened" on time.

"It was 15 per cent above but an overhead that was essential to keep the club open. I felt that I was being taken advantage of because it was €10,000 over budget," he added. Under cross-examination by Mr Finlay, Mr Cosgrove said he didn’t think the money was paid to a unit of the IRA. "I never contemplated such a thing," he said.

Mr Mooney has told the court that Mr Clare demanded €50,000 for the Continuity IRA to allow his lap dancing club to open in Temple Bar. Mr Mooney also said that he handed over a total of €15,000 to Clare and Kelly before leaving the club to enter the Witness Protection Programme.

Under cross-examination by Mr George Birmingham SC for the prosecution, Chief Superintendent Philip Kelly told the court he believed Mr Martin Kelly "was a member of an unlawful organisation, styling itself the IRA". "It was known that Martin Kelly was associating with subversives six months before his arrest," he told Mr Finlay, defending.

Mr Kelly was released on bail from custody today on condition that he sign on twice daily at a Garda Station and was warned by Mr Justice Joseph Finnegan not to have "any contact whatsoever" with any witness, directly or indirectly.

The trial continues at the Special Criminal Court next week.