Former Fianna Fáil TD Mr Liam Lawlor and businessman Mr Jim Kennedy stand to make a substantial profit if the planned "fast-track" rezoning of a new town at Adamstown, in Lucan, goes ahead.
By his own calculation yesterday, Mr Lawlor could earn €2.5 million if An Bord Pleanála approves Adamstown for "fast-track" housing development. Mr Kennedy, who has refused to come back from the Isle of Man to give evidence to the tribunal, could make €5 million.
The board is currently holding an oral hearing into the proposal to create a strategic development zone, which would allow for massive housing development at Adamstown. Local residents are fiercely opposed to the plans.
Mr Lawlor revealed yesterday that 2,000 out of the 10,000 houses planned for Adamstown would have to be drained by pipes in which he claims a 25 per cent interest. He estimated the value of this sewerage infrastructure at €5,000 per unit, giving his share of the total at €2.5 million.
Mr Des O'Neill SC, for the tribunal, said that whoever built the houses would have to deal with the owners of the pipes. They would be "held to ransom" by Mr Lawlor and his business partners.
"Held to negotiation, just as with any arm's-length negotiations," replied Mr Lawlor.
According to Mr O'Neill, a Cypiot-registered company, Pentagon Property Services, built the pipeline, and the work was carried out by Mr Kennedy. He said Mr Lawlor had told his financial adviser, Mr Luke Mooney, that Mr Kennedy owned 50 per cent of Pentagon. Ownership of the other 50 per cent was in dispute between Mr Lawlor, the lawyer Mr John Caldwell and Scottish millionaire Mr Harry Dobson.
Mr Lawlor said he didn't know anything about Mr Kennedy's involvement. He believed he had a "supervisory" role for the owners. He said the reason the pipes were laid was because the chief engineer in the local authority decided this.
Now, 16 or 17 years later, a Bord Pleanála inspector was sitting in the Gresham Hotel adjudicating on whether any houses should be built. Ownership of the pipes has since been transferred to another Cypriot-registered company, Metrolaunch, Mr O'Neill said. Mr Dobson had relinquished his share as part of the settlement of a land dispute, according to Mr Lawlor. Mr Lawlor also claims to own part of another pipe infrastructure in the Lucan area, which may service more of the houses planned for Adamstown. According to Mr O'Neill, Mr Kennedy was also involved in this project.
Counsel said Mr Lawlor had always been very "vociferous" in denying any business association with Mr Kennedy. Yet the two men were involved in at least three land deals, two in Lucan and one in Baldoyle.
Mr Lawlor said he "never received a penny" from Mr Kennedy. Their families came from the same county, Laois, and he had used Mr Kennedy's pub in Clondalkin, the Laurels, for constituency clinics in the 1980s. They both lived in Lucan at the time and their children played together, but he was never aware of Mr Kennedy's business interests.
Mr O'Neill accused the witness of keeping all the documents relating to his property deals offshore so that they wouldn't be accessible to the Revenue Commissioners or the tribunal. He said Mr Lawlor had painted a picture of an elderly solicitor - his adviser in Jersey, Mr David Morgan - taking it upon himself to finance the politician's property deal in the Czech Republic. Mr Morgan's estate then found itself £1.1 million in debt.
"You used Mr Morgan as a device whereby the money could be treated as a loan and if questioned, you'd say these are loan agreements and I'm bound to repay them. You'd say: 'It's not my money, I can't be taxed on it'."
Mr Lawlor denied this claim.
