Lowry linked to #4m deal by letter

New evidence has emerged linking Mr Michael Lowry to a £4 million sterling property deal involving Mr Denis O'Brien in Britain…

New evidence has emerged linking Mr Michael Lowry to a £4 million sterling property deal involving Mr Denis O'Brien in Britain.

A letter concerning the planned purchase of Doncaster Rovers' football stadium shows a key adviser to Mr O'Brien believed the former minister had a "total involvement" in the deal.

On learning yesterday that The Irish Times had seen the letter, lawyers for Mr O'Brien contacted the Moriarty tribunal to explain it. Previously the tribunal has been told by Mr O'Brien that he alone bought the football grounds.

The Moriarty (Payments to Politicians) Tribunal was told by Mr O'Brien in October 2001 that he bought the property, a football stadium, and that it still belongs to him.

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The 1998 letter seen by The Irish Times was written by the solicitor who acted in the transaction and is addressed to Mr Lowry at his Co Tipperary home.

The solicitor, Northampton-based Mr Christopher Vaughan, has admitted he wrote such a letter to Mr Lowry. However, he said he was under the misapprehension at the time that Mr Lowry was involved in the transaction and it later turned out that this was not the case.

A spokeswoman for Mr O'Brien, the multi-millionaire who set up ESAT Digifone, said yesterday he is categorically of the view that Mr Lowry is not and never was connected with the purchase of Doncaster Rovers Football Club Ltd, the company which owns a lease on the Doncaster stadium.

She said the issues surrounding the whole matter would be made very clear to the tribunal.

Mr Aidan Phelan, Mr O'Brien's former accountant, who was involved in the Doncaster deal, said: "I was the project manager with this transaction up to fairly recently and I can say that Mr Michael Lowry had no involvement in this transaction at any stage." He said this could be, and would be, demonstrated clearly.

Mr Lowry, when contacted, said he did not wish to comment. His accountant, Mr Denis O'Connor, who is helping Mr Lowry in his dealings with the Revenue Commissioners and the Moriarty tribunal, said he had never seen a letter linking Mr Lowry to the Doncaster stadium. He said that if Mr Lowry ever had any involvement with the Doncaster stadium, "then I throw my hat at it".

The tribunal is already investigating two English property transactions in the late 1990s which involved Mr Lowry and Mr Phelan and in which Mr Vaughan acted as solicitor. Mr O'Brien has said he knew nothing about these transactions at the time. The properties involved are in Cheadle and Mansfield and the total amount involved was about £700,000 sterling.

The letter shown to The Irish Times is accepted as being genuine by the parties concerned and has not been seen by the tribunal.

The shares in Doncaster Rovers Football Club Ltd were bought by an Isle of Man company, Westferry Ltd, in August 1998. The shares were sold by another Isle of Man company, Dinard Ltd, which is owned by an English businessman, Mr Ken Richardson.

The stadium in Doncaster is on a site which could be profitably developed if the football team which plays at the stadium, Doncaster Rovers, was supplied with a new grounds. Mr Richardson was jailed in 1999 for conspiring to have the stadium burned down.

Late last year a complaint was made to the police in London by representatives of Mr O'Brien after the 1998 letter from Mr Vaughan to Mr Lowry was produced during negotations between representatives of Mr O'Brien and Mr Richardson.

The two sides were taking part in a mediation process aimed at settling a dispute over final payments associated with the Doncaster deal. The letter was produced by Mr Richardson's side in an attempt to increase the pressure on Mr O'Brien. Mr O'Brien's side does not know how representatives of Mr Richardson came into possession of the letter.

Colm Keena

Colm Keena

Colm Keena is an Irish Times journalist. He was previously legal-affairs correspondent and public-affairs correspondent