BUSINESSMAN JIM Kennedy is denying claims by former lobbyist Frank Dunlop he gave £25,000 (€31,750) to Mr Dunlop in 1992 to buy councillors’ votes for a rezoning of lands at Carrickmines, the High Court was told yesterday.
The lands were rezoned in 1997, valued at €53 million in 2005 and are now valued about €5.7 million, it was stated.
Gibraltar-based Mr Kennedy was in court yesterday for the opening of proceedings by the Criminal Assets Bureau (Cab) against Jackson Way Properties Ltd, alleging it was unjustly enriched as a result of the rezoning of 17 acres of farmland in Carrickmines, south Dublin.
Mr Kennedy and solicitor John Caldwell are the alleged beneficial owners of Jackson Way and Mr Kennedy is to give evidence in the case. Mr Dunlop also attended the court and is to give evidence on behalf of the Cab.
Outlining the Cab’s case, which is brought under the Proceeds of Crime Act, Diarmuid McGuinness said Mr Dunlop will say he used £25,000 given to him by Mr Kennedy to lobby for the rezoning of the Carrickmines land. Mr Kennedy will deny any such payment, counsel added.
Mr Dunlop, recently released from an 18-month prison sentence for corruption in relation to the Carrickmines rezoning, will also say he was promised a “success fee” of £100,000 (€127,000) if rezoning of the farmland to industrial use was obtained, the court heard.
It took another five years (1997) before the rezoning was obtained and by that stage, Mr Kennedy had promised a £250,000 success fee, counsel said. Mr Kennedy had also denied that claim.
Counsel said the value of the land increased to €6.6 million when it was rezoned in 1997 and by 2005, just before the Cab initiated the unjust enrichment proceedings, it was worth about €53 million. Today, it was valued about €5.7 million, counsel said.
The Cab alleges total unjust enrichment of around €10 million. That sum comprises the €5.7 million current value of the 17 acres, plus a €4.25 million sum allegedly overpaid to the company, as a result of the rezoning, in a €12.8 million arbitration award.
That award was made following the compulsory purchase for the South Eastern Motorway of an adjoining 20 acres owned by Jackson Way. Had the 17 acres not been rezoned, the value of the motorway land would not have been €12.8 million, the Cab contends.
Mr McGuinness said it is alleged the owner of 108 acres at Carrickmines had in 1991 sold the land to a company, Paisley Park Ltd, for £700,000 following approaches to that owner by a Sam Stanley, acting on behalf of Paisley Park.
Mr Stanley had a 20 per cent stake in Paisley while Mr Kennedy and Mr Caldwell owned the remainder, counsel said.
Frank Dunlop would give evidence Mr Kennedy approached him to lobby councillors to get the land rezoned and that Mr Dunlop had “collected” a £25,000 “fund” to pay councillors with the promise of a £100,000 success fee, counsel said.
Mr Dunlop would also say he paid £3,000 to two councillors who moved the rezoning, which was ultimately defeated.
The case continues today.