Ahern approved secret casino deal
The former chairman of the National Lottery Company today directly links Taoiseach Bertie Ahern to the development of a casino project backed by dollar-rich investors.
In a dramatic statement to the Irish Independent, respected businessman John Hynes reveals that Mr Ahern was aware of, and approved, the State-owned National Lotterys involvement as a sleeping partner in the casino project -- as revealed yesterday by this newspaper.
And Mr Hynes says the casino developer on the opposite side of the deal, Manchester tycoon Norman Turner, "purported that the Minister for Finance, Bertie Ahern, was known to him (Turner)" and "aware of all aspects of the project, and was not opposed to the casino."
Mr Hynes, the former chief executive of An Post, says he was "surprised" the Department of Finance -- under Bertie Ahern -- approved such involvement by a State company.
Mr Turner gave $10,000 to Des Richardson in Manchester for Fianna Fail, but denies allegedly offering former councillor Tom Morrissey a £30,000 bribe to support the project.
Mr Hynes also said Mr Turners consortium was trying to use the National Lottery in the development of the casino to "rent a reputation".
Mr Aherns early career was based on opposing slot machines and he only repudiated the casino proposal just before the 1997 general election.
The proposal, earmarked for the 100-acre Phoenix Park racecourse site, would have involved not just an upmarket casino but Europes largest slot-machine concourse.
Mr Hynes confirmed yesterdays Irish Independent story that the State-owned National Lottery was a potential partner on the casino deal, signing a Non-Disclosure Agreement with American venture capitalists Ogden Entertainment "probably in late 1994."
He confirmed that the matter was under investigation by the Mahon tribunal and said he could only discuss certain aspects of the secret State involvement in the proposed gaming extravaganza for that reason.
He added: "When it became clear that the National Lottery role in the casino, as envisaged by Ogden, was merely one of rent a reputation, we adopted a more proactive position and demanded that our role be more than regulatory and reputational. We were not at all comfortable with Ogden becoming the actual operator."
He said he and his National Lottery fellow executives were uncomfortable with an approach for a partnership by Ogden.
"As executives, we were aware that Ogden had experienced negative publicity in the US, and we were also aware that Gtech, a supplier of Lottery systems to the National Lottery, was alleged to have made payments to Mr Charles Haughey. This was subsequently found to be true.
"We were also aware that rumours were rife about improper payments to public representatives in this and other planning matters."
Mr Hynes, a hugely respected figure in the Irish business world, thus becomes the second major corporate figure in a week to speak out on matters involving Mr Ahern under investigation by Mahon.
The National Lottery refused comment yesterday, as did Ray Bates, its former director, who had earlier asked to clear matters with his former employer before speaking. Mr Bates left the company two years ago and is now a consultant.
Mr Hynes said he had "contacts" with Des Richardson over the secret partnership proposal. The casinos profits were to cross-subsidise other proposed developments on the racecourse site, he said, which was bought by Ogden/Sonas for £10m from a racing syndicate involving Robert Sangster and others.
The former chairman of the National Lottery said his company wanted to run the casino as it did not trust Ogden. "Rumours were rife" and they were very conscious of a corruption link to Charles Haughey "which we found credible."
Mr Hynes said he was not personally aware of Norman Turner offering inducements to anyone to help realise the project.
Labour Party deputy leader and local TD Joan Burton said last night that there was "extreme pressure" exerted on public representatives to back the deal. She said she was opposed because she saw the casino as pernicious and socially degenerative, having had experience of such a development in New Jersey.
Mr Hynes confirmed trips by National Lottery executives to North America, where they studied casinos in Las Vegas, Atlantic City and Quebec.
2007-12-05
