The co-founder of Century Radio, Mr Oliver Barry, claimed £40,000 from Century Radio accounts and received it under the cover of monies owed for services rendered, the tribunal was told yesterday.
Mr Pat Hanratty SC, for the tribunal, was asking Mr James Stafford, joint director of Century, about company accounts and loans in 1990. He said it was clear there was an intent in September 1990 to extract a further £40,000 over and above the amount lent to the company. This was at the time Capital Radio was looking into making an investment.
According to documents the figure of £40,000 was included and was attributed, presumably by Mr Barry, to expenses incurred by him, Mr Hanratty said. "What I really want to put to you, Mr Stafford, is that all of this clearly points to the possibility, shall we say - to put it neutrally - that Mr Barry made another payment of £40,000 in 1990.
"I am not talking about the £35,000 he paid to Ray Burke in 1989, and I am not talking about the £5,000 he paid to Fianna Fail in 1989. I am talking about another payment of £40,000 by Mr Barry in 1990."
He said this payment was described in the company's solicitor's notes as "expenses incurred", which were attempted to be extracted from the company under the guise of loans to the company of which no disclosure was made to anybody, of which there were no records of the company or of another company run by Mr Barry, Quality Artistes Management.
They were described for the first time by Mr Stafford in a draft letter he sent to Mr Barry in December as "monies due for services rendered".
Mr Stafford asked: "You are saying to me there is £40,000 taken out of this company in this period for an improper payment?"
Mr Hanratty said: "I am saying to you that all of the documentary evidence that is avail able to the tribunal points to the clear possibility that Mr Barry incurred expenses to the extent of £40,000, that he sought reimbursement of those expenses under a different name."
Mr Stafford asked if they could take it bit by bit, as he said this was quite a serious allegation. Mr Hanratty said it was not an allegation.
Mr Stafford said: "A speculation, Mr Hanratty, put it that way. To my knowledge there is no payment made by Century at any time to any politician other than the two that were disclosed, the £5,000 [to Fianna Fail] and the £2,000 [to Fine Gael].
"As to this being a possibility that there is £40,000 of a payment in this period that is somehow improper or is not in relation to expenses as disclosed by Mr Barry subsequently to Capital, I have no knowledge whatsoever." Mr Stafford said Mr Barry was paid the sum as expenses in relation to costs outlay on his own staff. He did not believe there was anything other than that involved in the payment. Mr Barry was paid the £40,000 in February 1991.
Mr Hanratty said Mr Stafford knew very well at the time that the payment was reimbursement which Mr Barry received for a payment he made in cash and which he received under the cover of a description of monies owed for services rendered.
Mr Stafford said there were two sums of £40,000 each. The £40,000, which was the £35,000 paid to Mr Burke and the £5,000 paid to Fianna Fail or RTE, the first time he knew about that was March 20th, 1991, a number of weeks after the other payment of £40,000 in February.
Mr Hanratty asked him about capping legislation and £40,000.
"I have no knowledge of any questionable payments in relation to the capping legislation, never have had and never speculated to anybody on it either," Mr Stafford said.
Mr Hanratty said: "Is it possible Mr Barry did in fact incur expenses to the tune of £40,000 in 1990 and it was in connection with legislation?"
Mr Stafford said: "I don't know. I don't think so. I hope not, but I have no knowledge whatsoever that any such payments were ever sought or canvassed. I have absolutely no knowledge."