The public relations consultant, Bill O'Herlihy, has told the Mahon Tribunal he was both astonished and disgusted to be told that Dublin councillors were getting £50,000 a year in bribes.
Mr O'Herlihy said Fianna Fáil Senator Don Lydon was named as a 'lead councillor' in the corruption.
Mr O'Herlihy said he was told about the corruption by an executive of Monarch Properties, Richard Lynn, who had hired him concerning a proposed 950-house development in Cherrywood in south Dublin.
He said Mr Lynn told him that councillors never recognised the merit or quality of a development, and to get planning change or material contravention through you had to buy it.
Mr O'Herlihy said he was told that Monarch had paid £100,000 and the system worked by getting a 'lead councillor' who would deal with the other councillors and distribute the money.
Mr O'Herlihy said he has no evidence himself to back up the claims.
Mr O'Herlihy said the conversation with Mr Lynn took place in the Royal Dublin Hotel in May 1992 while they were waiting on a development vote which Monarch lost by two votes.
The tribunal heard that Mr Lynn denies the conversation took place.
And in a statement this afternoon, Mr Lydon said he categorically and absolutely rejected Mr O'Herlihy's allegation, which he said he would deal with further before the tribunal.
