Mahon Tribunal: Former Fianna Fáil TD Mr Liam Lawlor missed out on a multi-million pound windfall from a land deal after his business associates cut him out of the transaction, the tribunal has heard.
Solicitor Mr John Caldwell told the inquiry he ended Mr Lawlor's involvement in the deal after the politician tried to take control of Southfield Property Company, which owned the land at Coolamber in west Dublin.
As a result, Mr Lawlor ended up with no legal entitlement to the land instead of enjoying a half-share of the £2.5 million raised when the land was sold in the early 1990s.
Four years earlier, Mr Lawlor had purchased the land for £208,000 using money borrowed from beef magnate Mr Larry Goodman, the tribunal has already heard.
According to earlier evidence from Mr Caldwell, Mr Lawlor then agreed to give a 50 per cent share in Southfield to businessman Mr Jim Kennedy.
However, when Mr Caldwell organised the sale by Southfield of the land to Vino Properties, registered in the British Virgin Islands, for £400,000 in 1992, Mr Lawlor's interest in the land was extinguished.
Vino, now owned by Mr Kennedy and Mr Caldwell, later contracted to sell the land to a builder for more than £2.5 million.
Mr Caldwell's transfer of ownership to Vino followed efforts by Mr Goodman to recover monies due to him from the transaction. Mr Goodman warned he might have to take over the land and sell it if agreement was not reached, Mr Lawlor has claimed.
Mr Caldwell said yesterday Mr Kennedy was "deeply suspicious" about what was happening and "saw Liam Lawlor's hand in it".
Mr Kennedy did not know where Mr Lawlor's loyalties might lie, he added.
"There was a feeling that Liam Lawlor was running with the hare and hunting with the hounds. It was a situation where people were in crisis with each other. You make judgments and act on them.
"I acted very quickly and I ended the relationship with Liam Lawlor," Mr Caldwell explained, adding that he accepted Mr Kennedy's "view of the world".
He did not know where Mr Kennedy got the £400,000 for Vino to buy the land.
Judge Alan Mahon pointed out that this was more than €1 million in today's money. "You were to be a 50 per cent owner and you are telling the tribunal you don't know where the money came to buy this land?" he asked.
Mr Caldwell said he was not privy to the arrangements Mr Kennedy made to organise the funding. Even to this day he did not know where the money came from.
"Did you never ask him just out of interest, where did you get the €500,000 that bought my share?" the chairman asked.
Mr Caldwell said he didn't; there was no reason to do so.
Judge Mary Faherty said Mr Kennedy appeared to be able to "pull a rabbit out of the hat" for himself and Mr Caldwell, when he hadn't been able to do anything at an earlier stage.
Mr Caldwell has already told the tribunal he later made a £350,000 payment to Mr Lawlor after being "blackmailed" by the politician.
Mr Lawlor "lay in the long grass", he claimed. "He went away until the land was rezoned and planning permission was got on it and then he reappeared."
