Dermot Desmond, Admitted loan was informal arrangement
Celtic Mist, Refurbishment loan was "insignificant"
Financier Dermot Desmond has told the Moriarty Tribunal that a loan of over £75,000 given to Conor Haughey for the refurbishment of his yacht, Celtic Mist, was "insignificant". Mr Desmond said that he told Mr Haughey to forget about the loan on a number of occasions, when he said that he was unable to repay him. They later came to an agreement that the loan would be repaid if the boat was sold. However, Mr Desmond admitted there was never any commercial reality in the loan and said that he considered the Haughey family as friends.
The loan for 'Celtic Mist' was carried by a company controlled by Mr Desmond, Freezone Investments Limited. Mr Haughey was unaware of this until he was questioned about Freezone by an inspector appointed under the companies act.
Mr Desmond also told the Tribunal that the sum of £100,000 given to Charles Haughey in 1994 was given "Dermot Desmond style" without any documents or securities. Mr Haughey had told him he needed money and was considering taking up a position with a German bank. Mr Haughey did not want to take the position but said that he needed to generate income. Mr Desmond instead advised him to restructure his assets and said he would make £100,000 available to him. He told the Tribunal he was happy to do that then and would do the same again today, until Mr Haughey resolves his difficulties.
Mr Desmond was asked to explain to the Tribunal why the money for 'Celitc Mist'was paid through two companies, Dedier and Freezone Investments. Mr Desmond said that he did not write personal cheques for over 12 years and that all his personal financial dealings were carried out through one of his companies, Dedier Ltd. He said that he never intended to charge interest for the loan and admitted it was an informal arrangement which would have been difficult to enforce.
