The Moriarty Tribunal has heard that the Revenue Commissioners initially decided not to pursue Charles Haughey for money received from Patrick Gallagher as a deposit on the proposed sale of lands at Kinsealy. Mr. Haughey received a £300,000 deposit from Patrick Gallagher in 1980 on a land deal that was never completed.
Today the receiver for the Gallagher group, Lawrence Crowley, said that he sought legal advice when he uncovered the unusual contract drawn up between the Gallaghers and the Haugheys. Senior Counsel told him there was no guarantee the deposit could be recovered, that legal costs in pursuing the matter would be high and that it was the job of a liquidator, not a receiver.
Mr. Crowley said that he met the Chairman of the Revenue Commission, as they were the preferential creditors of the Gallagher Groups assets, to see what action they could take. The then Chairman, Seamus Pairceir, later wrote to him to say that it would be difficult to prove that the contract meant something other than it stated and recovering funds was by no means guaranteed. In the letter, Mr. Parceir said, "the status of the vendor in no way influenced my decision." No further efforts were made to appoint a liquidator.
The Tribunal heard that at a later stage the Revenue Commisioners levied capital gains tax on this transaction and recovered £80,000 from the Haugheys as a result. The Tribunal has now been adjourned until 17 June.
