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'Nothing wrong' with payments - O'Callaghan

Owen O'Callaghan - Paid councillor's debt
Owen O'Callaghan - Paid councillor's debt

Cork developer Owen O'Callaghan has told the Mahon Tribunal he sees nothing wrong in making payments to councillors who supported the Quarryvale rezoning.

Mr O'Callaghan also said he did not believe that such payments should have been disclosed to other councillors voting on the proposed development.

Owen O'Callaghan was questioned about payments made to two then Fianna Fáil councillors Colm McGrath and Sean Gilbride.

He said he gave Colm McGrath a £10,000 donation for the 1991 local elections and also paid him £1,400 in secretarial fees for his work in promoting Quarryvale.

Mr O'Callaghan said he also agreed to pay a legal debt of £10,700 incurred by Mr McGrath in 1992.

He also agreed to fund Sean Gilbride's leave of absence as a teacher to work full time in promoting Quarryvale and getting elected as TD or Senator.

He paid Mr Gilbride a total of £15,500, even though Mr Gilbride failed to get nominated for the 1992 general election and did not run in the subsequent Seanad election.

In answer to Patricia Dillon SC, Mr O'Callaghan said he did not see anything wrong in councillors elected to represent the entire community working assiduously for a developer and receiving money from that developer.

Mr O'Callaghan also said he did not believe that this should have been disclosed to other councillors.

O'Callaghan 'completely overlooked' payment

In his evidence earlier today, Mr O'Callaghan said he completely overlooked a payment to Colm McGrath in his first statements to the Mahon Tribunal.

Owen O'Callaghan said he contacted his former lobbyist Frank Dunlop in 2000 to get details of when he paid the councillor's legal debt.

Mr Dunlop had publicly revealed payments to politicians during testimony to the tribunal in April 2000.

Mr O'Callaghan said he cannot remember what triggered his recollection of the payment but denied it was Mr Dunlop who had reminded him.

He said Mr McGrath had tracked him down to Mr Dunlop's office in 1992 and said he could not pay a court judgment against him by a former business partner for £8,000.

Mr O'Callaghan said after discussing the matter with Mr Dunlop, he agreed to pay the debt and legal costs totalling £10,700.

He said Mr McGrath had been publicly supporting the Quarryvale project and his inability to pay the money could mean bad publicity or even bankruptcy.

Mr O'Callaghan said he regarded the payment as a loan - not a donation - but it was never repaid.