Former Fine Gael minister Mr Michael Lowry will tell the Moriarty tribunal he spoke to an official of GE Capital Woodchester bank in 1999 about the guarantee being provided for a loan to his company, it emerged yesterday.
Officials of the bank have claimed they did not know the £420,000 sterling loan, provided in December 1999 to a UK registered company called Cat clause Ltd, had anything to do with Mr Lowry. Mr Lowry was a director of the company.
Counsel for Mr Lowry, Mr David Barniville, told the tribunal yesterday his client would give evidence he spoke to a former director of the bank, Mr Michael Tunney, in December 1999, about contacting Mr John Daly, his guarantor for the loan.
Mr Tunney said he never knew the loan, which he granted, had anything to do with Mr Lowry. He said he was approached about the loan by Mr Aidan Phelan, an associate of Mr Denis O'Brien, and believed the loan was for Mr Phelan.
Mr Barniville said Mr Lowry would say Mr Tunney telephoned him and asked for financial details concerning Mr Daly, a Cork property developer. Mr Tunney denied this.
"Mr Lowry will say that he told you that rather than be caught in the middle you should telephone Mr Daly yourself. Do you accept that?," he asked. "I do not," Mr Tunney replied.
Counsel said Mr Lowry would also say he gave Mr Tunney the telephone number of Mr Daly. Mr Tunney said that was also incorrect. He said he got the number from Mr Phelan.
Earlier, Mr Jerry Healy SC, for the tribunal, put it to Mr Tunney he told Mr Daly he was calling him in connection with Mr Lowry. Mr Tunney said he did not.
Mr Tunney said the guarantor was offered by Mr Phelan but he did not ask for it. Mr Phelan will say he understood a guarantor was sought because of Mr Lowry's involvement. Mr Tunney disagreed.
Mr Tunney said Mr Phelan never told him the guarantor decided to withdraw. Mr Phelan will say he informed Mr Tunney of this.
Mr John Gleeson SC, for Mr Phelan, said his client would also say Mr Tunney was doing him a favour by giving this loan to Mr Lowry. Mr Tunney said this was absolutely incorrect.