The former government minister Mr Michael Lowry agreed with counsel for the Moriarty tribunal yesterday that he had attended to his financial affairs in a "very haphazard manner", but insisted that his unorthodox business relationship with Dunnes Stores had never had any influence on his political decisions.
"It was a commercial, business relationship, but I can understand with everything that has happened since that the wrong impression could have been created" Mr Lowry told the tribunal. However, he had never been requested by Mr Ben Dunne or by Dunnes Stores to use his political influence "in any way at any time".
Mr Lowry's business relationship with Dunnes Stores began in January 1989, when he was a TD. He met Mr Ben Dunne, who offered him first option on a contract for maintaining and equipping refrigeration in the entire Dunnes Stores group. Dunnes financed the start-up costs of Mr Lowry's Streamline Enterprises to the extent of £165,000. It was agreed that Streamline would make a small profit and that Mr Lowry would get separate bonus payments from Mr Dunne.
Mr Lowry agreed with Mr John Coughlan SC, counsel for the tribunal, that the manner in which he accepted payments from Dunnes Stores had created a "wrong impression" of his relationship with Mr Dunne and Dunnes Stores.
"I received an offer from Mr Ben Dunne on behalf of Dunnes Stores . . . I was starting off in business, I was young, I was ambitious. It was an opportunity that many people in my trade would have liked to have had. I didn't give the mechanisms and the structure and the administrative structure, in particular, the kind of consideration it merited."
Mr Lowry said that he had never used his political influence to intervene on behalf of any person with whom either he or his company had a commercial or business relationship.
Following his resignation as Minister for Transport, Energy and Communications, Mr Lowry had instructed his accountants to review and reconstruct the records of his financial affairs.
Mr Lowry recalled the help he had received from the late Mr Michael Holly, a builder and property developer, in purchasing a house at Carysfort Avenue, Blackrock, Co Dublin. In 1996, he had discussed his "desire to obtain a property in Dublin" with a number of people. He had visited properties in Goatstown and Mount Street, and had been personally assisted by Mr Mark FitzGerald, of Sherry FitzGerald, and Mr Ken McDonald.
He had mentioned to Mr Holly that he was looking for a property in Dublin. Mr Holly had said he would "keep an eye out" for one and had subsequently phoned Mr Lowry to tell him he had found a property on Carysfort Avenue which would be "very suitable". Mr Holly purchased the property at auction in July 1996 for £200,000 and his company, Cedar Building Company Ltd, paid a deposit of £20,000 at the auction.
Mr Holly gave him first refusal on the property and after visiting it Mr Lowry had decided to exercise the option. He had obtained a mortgage representing the full purchase price from the Irish Nationwide Building Society. When the loan cheque was received, £20,000 was reimbursed to Mr Holly's company. The balance was paid to the vendors.
When details of the purchase were made public in early 1997, the position became "intolerable" for the former minister. Mr Holly had agreed to repurchase the property from him for £223,000 in January 1997 on behalf of Cedar Building Company Ltd.
