The Flood tribunal's investigations into planning corruption have been dealt a major blow by the decision of the Director of Public Prosecutions to charge Mr George Redmond with tax offences.
The decision to charge the former assistant Dublin city and county manager with failing to make tax returns considerably diminishes his usefulness to the tribunal.
Legal sources say Mr Redmond is likely to say he cannot now give evidence to the tribunal because this could prejudice his criminal trial. This was the approach adopted by witnesses in similar situations in the beef tribunal and the Buttevant rail inquiry.
Mr Redmond (75) was arrested by Criminal Assets Bureau officers only hours after the Supreme Court ruled in the tribunal's favour in its legal conflict with the CAB. The court ruled that the CAB was not entitled to refuse to hand over documents it seized from Mr Redmond when he was arrested last February.
Tribunal lawyers will ask Mr Justice Flood to make an order seeking copies of the documents, which Mr Redmond was about to hand over to the tribunal when he was arrested on his return from the Isle of Man. He was carrying £300,000 in cash and cheques at the time.
The CAB is certain to oppose this order. Its hand has been strengthened now that Mr Redmond has been charged, as criminal cases take precedence over civil proceedings in Irish law.
In 1993 six managers at a meat plant in Rathkeale, Co Limerick, refused to answer questions at the beef tribunal on the grounds that they might incriminate themselves.
Some had been arrested and questioned following earlier evidence to the tribunal. The chairman, Mr Justice Hamilton, described proceedings as "a charade".
As the de facto city manager for much of the 1980s, Mr Redmond is a key witness for the tribunal's investigations into planning abuses. Mr James Gogarty has accused him of taking a bribe for procuring planning favours and he faces a number of other allegations.
In a brief appearance at Dublin District Court yesterday, Mr Redmond, of Deerpark Lawns, Castle knock, faced 10 charges of knowingly failing to make tax returns between 1988 and 1998.
Det Insp Patrick Byrne, of the CAB, said he brought Mr Redmond into the Garda station and after he was charged he had nothing to say. He told Mr Redmond's solicitor, Mr Anthony Harris, the arrest was by appointment with the CAB officers.
Judge Mary Collins remanded him to September 9th on his own bail of £500 with an independent surety of £500.
It is understood that Mr Redmond has recently filed returns for the years in question and has paid the outstanding tax and interest.
If convicted, he could face a maximum £10,000 fine and/or five years in jail.
However, most tax offenders are given fines ranging from £250 to £1,000 per year of failed returns. Jail sentences are virtually unheard of. A recent case in Waterford in which a sentence of five months' imprisonment for tax offences over five years is being appealed.
In the Supreme Court judgment, the Chief Justice, Mr Justice Hamilton, found the High Court had correctly decided that Mr Justice Flood had power to decide whether the documents in the CAB's possession were privileged and whether copies should be handed over.
The CAB was in no different position from any other person or body lawfully required to attend before the tribunal or produce documents in their possession or procurement, the Chief Justice said.
In evidence to the tribunal yesterday, the developer Mr Michael Bailey admitted he lied to a journalist regarding the meeting at which Mr Ray Burke was paid money and regarding his dealings with Mr James Gogarty.
Mr Bailey has provided three different versions of the Burke meeting. The tribunal faces another important court ruling next Tuesday, when the Supreme Court is due to deliver its judgment in the appeal by Mr Justice Flood against the Fianna Fail TD, Mr Liam Lawlor.
