Conor Haughey concerned over source of yacht loan

Conor Haughey has told the Moriarty Tribunal he was concerned to learn that money he received from Dermot Desmond for the refurbishment of the family yacht, came from a company at the centre of controversy over the sale of the Johnson, Mooney and O'Brien site to Telecom Eireann in 1992. However, he did not contact Mr Desmond to discuss it. He said he was interviewed by the government inspector looking at the issue at the time and felt it was better to leave it in the hands of his solicitor.

Mr Desmond gave Conor Haughey a loan of £75,000 to refurbish the yacht, Celtic Mist. Conor Haughey says he proposes to settle the debt some time in the future. He says he regards Dermot Desmond as a close friend and there never has been any pressure on him to pay back this loan. Mr Haughey said that he originally asked Mr Desmond for help with the boat as he was involved with the yacht NCB Ireland, and felt he might be able to get him a good deal with yacht designer Ron Holland. He said the loan was backed by his shares in Feltrim Mining. However, the loan never involved any paperwork or discussion. Conor Haughey said today that, in his own style, Mr Desmond said he would look after it.

Money to refurbish the yacht came from a company called Freezone based in the Channel Islands, and with which Dermot Desmond was associated. This company was investigated by John Glackin on behalf of the government following the Johnson, Mooney and O'Brien controversy. When Celtic Mist turned up in the books of Freezone, Conor Haughey was interviewed by Mr Glackin. Mr Haughey said he did not contact Mr Desmond before hand and went into Mr Glackin with no knowledge of how Freezone money paid for the Celtic Mist work. Conor Haughey said he does not know why Dermot Desmond paid for this work but he speculated that Mr Desmond felt the Taoiseach of the day should be sailing in a boat which reflected sailing in Ireland in a good light.

The Moriarty Tribunal has now adjourned for a week.