The former Fine Gael minister, Mr Michael Lowry, asked an associate of Mr Denis O'Brien to get him a bank loan to buy property in the UK in 1999, it has been claimed in a statement to the Moriarty tribunal.
Mr Aidan Phelan, an accountant and financial adviser to Mr O'Brien, who is due to give evidence later, had part of his statement read into the tribunal record yesterday by counsel for the tribunal, Mr Jerry Healy SC.
It said Mr Phelan had agreed to set up a £420,000 sterling loan for Mr Lowry. The money was not given to Mr Lowry personally, but to a company called Catclause Ltd, of which Mr Lowry and his daughter, Lorraine, were directors.
In his statement Mr Phelan said: "In September 1999 Mr Lowry told me that he had identified an attractive property in the UK. However, he indicated to me that he would have difficulty arranging loan facilities to complete the purchase. I offered to assist him in securing such a loan facility.
"In this regard, I had a good and long-standing relationship with GE Capital Woodchester Bank through Mr Tunney, and had in the past engaged in numerous very large banking transactions with that bank. I agreed to approach GE Capital Woodchester Bank for loan finance on behalf of Mr Lowry, or a corporate vehicle of his."
He added that it was decided that Catclause Ltd would be the borrower of the loan and the purchaser of the property, a church in Cheadle. Planning permission was sought to develop it into a nursing home.
A senior executive of the bank, Mr Michael Cullen, gave evidence that Mr Phelan was regarded as a reliable and trusted customer. He said, however, that Mr Phelan did not tell him the details contained in his statement when he met him earlier this year to discuss who the borrower of the loan was.
Mr Cullen said had he been aware of what was contained in Mr Phelan's statement it would have caused him even greater concern.
The tribunal has already heard the bank was concerned about its reputation after it discovered the loan it had been told by Mr Phelan was linked to Mr O'Brien had gone to a company of which Mr Lowry was a director. The bank had believed Catclause Ltd was owned by Mr Phelan.
Mr Cullen said the bank treaded "very, very, very carefully" when it realised Mr Lowry was a director of Catclause Ltd.
He added that a former executive of the bank, Mr Michael Tunney, who had given the loan, told him (Mr Cullen) that Mr O'Brien was aware of the transaction. However, he said the loan was not given because of a connection with Mr O'Brien.
It was given because the bank had been promised a special charge on the property in Cheadle and because the guarantor promised was Mr John Daly, who had a net worth of at least £5 million. Mr Daly knew Mr Lowry.
There would have been very few clients, maybe 20, the bank would have provided immediate and 100 per cent finance to for a venture that hadn't been checked, Mr Cullen said.
Mr John Gleeson, counsel for Mr Phelan, said his client would say Mr Tunney was told right from the start of Mr Lowry's involvement in the transaction. Mr Cullen said he was not aware of this.
Mr Gleeson said Mr Phelan would deny ever telling Mr Tunney that Mr O'Brien was aware of the transaction. Mr Cullen said he had a clear recollection that Mr O'Brien was mentioned.