A bank official who considered the former Fine Gael minister Mr Michael Lowry's finances to be a "hopeless case" agreed to give him a £420,000 sterling loan soon afterwards, the tribunal has heard.
Mr Lowry was questioned yesterday about his involvement in a property transaction in Cheadle, England, in 1999. He used money borrowed from Mr Aidan Phelan, an accountant and former financial adviser to Mr Denis O'Brien, to pay the deposit.
When he encountered difficulties raising the remainder of the money he returned to Mr Phelan, who secured the rest from Woodchester Bank.
Mr Jerry Healy SC, for the tribunal, asked Mr Lowry if he was surprised to learn the identity of the individual in Woodchester Bank who was making the money available.
The bank official was Mr Michael Tunney, who had previously met Mr Lowry in the Radisson Hotel. He has given the tribunal an account of the meeting, which Mr Lowry has rejected.
"If the evidence that Michael Tunney has given is correct, that he told you . . . you were such a hopeless case you should sell everything and start over again, it was surprising, wasn't it, he was going to give you money?" Mr Healy asked.
Mr Lowry said their previous meeting in the hotel must have convinced Mr Tunney that "I wasn't that bad of a wager".
Mr Healy said it was "curious" Mr Lowry had not approached any bank about the Cheadle project.
Mr Healy said Mr Lowry had told the banks nothing about it, "and I defy you to produce a single human being in this country" who would think otherwise, he said.
Mr Lowry said he had discussed the proposal with the Irish Permanent in general terms but agreed he told no financial institution exactly why needed the money.
The tribunal heard Woodchester Bank would provide the £420,000 sterling loan only on the basis a guarantor could be found.
Mr Lowry approached a Cork property developer, Mr John Daly, and asked him to guarantee the loan. Mr Daly agreed. The borrower would be Catclause Ltd. Mr Lowry and his daughter, Lorraine, were directors of the company.
Mr Lowry was asked to explain why his name and address did not appear on loan documents seen by the tribunal yesterday.
Mr Daly's Cork address was given as the address for Catclause Ltd. Mr Lowry said he had "no idea" why this had happened.
