CORK DEVELOPER Owen O'Callaghan has said he kept a potential deal with a company owned by the Duke of Westminster from his business partner because Tom Gilmartin could have "blown the deal apart".
Mr O'Callaghan said he was concerned Grosvenor Estate Holdings, owned by Duke of Westminster Gerald Cavendish Grosvenor, might hear allegations of corruption surrounding Quarryvale. But he denied he did not tell his Luton-based partner about the deal because he was afraid Mr Gilmartin might make such allegations.
The planning tribunal is questioning Mr O'Callaghan as part of the Quarryvale II module, an investigation into allegations of corruption surrounding the rezoning of land on which the Liffey Valley Shopping Centre is built.
The tribunal heard that in late 1995 negotiations were under way with Grosvenor. At the time, Mr Gilmartin had made allegations of planning corruption in Dublin. He had told AIB, his bank, that two UK television companies had approached him for his story about corruption.
Patricia Dillon SC asked Mr O'Callaghan if he was concerned that the allegations might come up while negotiations with Grosvenor were continuing. Mr O'Callaghan said he was. He agreed that foreign investors would "look askance" at any allegation of corruption.
"Was it a concern of yours that Mr Gilmartin should be kept as far away as possible from the potential deal?" Ms Dillon asked.
"Not for that reason," Mr O'Callaghan responded. He said if Mr Gilmartin became involved in the deal he could have "blown the deal apart".
Mr O'Callaghan visited Mr Gilmartin in Luton in November 1995 and "probably" asked Mr Gilmartin to leave the Grosvenor deal alone, he said.
"Mr Gilmartin and Grosvenor wouldn't last around a table for 10 minutes," he said. He also negotiated a deal to buy Mr Gilmartin out of Quarryvale, on his request.
The tribunal heard that Grosvenor agreed to buy into the Quarryvale project, getting 50 acres for £24 million. Ms Dillon said the payment would virtually wipe out the company's debt to AIB, Mr Gilmartin would be bought out for almost £8 million and Mr O'Callaghan would be left with over 100 acres of land. He would also own a related site in Neilstown of 61 acres. She said the upside of the deal was significant.
"I couldn't agree with that," Mr O'Callaghan said.
"Looking back on it now . . . do you feel that you made a satisfactory profit?" Ms Dillon asked.
"Absolutely not . . . it's hard to believe, but that's a fact," Mr O'Callaghan said. He said a master plan for the area had still not been approved by councillors.
Mr Gilmartin had said Mr O'Callaghan had fallen out of a broom cupboard on one occasion when he was trying to eavesdrop on a conversation Mr Gilmartin was having with his solicitor.
"Is it your evidence that there never was a circumstances in which such an event ever happened?" Ms Dillon asked.
"Good God, no," Mr O'Callaghan said.
