Sunday 4 December 2016

Court tells Callely to pay former accounts firm €1,512

Published 13/12/2011 | 05:00

AN accountancy firm at the centre of Ivor Callely's ill-fated shop and apartment development has secured a €1,512 judgment against him.

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The €10m project was launched in 2007 and involved purchasing two houses in Clontarf, north Dublin, demolishing them, and building 44 apartments and two shops.

Mr Callely and three Galway-based investors intended to make a nine-times return on the investment.

However, the project was refused planning permission by An Bord Pleanala and subsequently went into receivership.

It has emerged that Mr Callely was unable to cover the full cost of the accountancy work for his part in the deal.

Galway-based accountants Gallagher & Company dealt with tax returns for the partnership in relation to the property.

The District Court judgment against Mr Callely, listed in the 'Experian Gazette', is for unpaid fees to the firm.

The latest judgments list also shows Kingspan founder Brendan Murtagh has had a €6.6m charge registered against him by Anglo Irish Bank under its new name Irish Bank Resolution Corporation (IBRC).

Anglo registered judgments of €23.4m against Mr Murtagh in the summer, enforcing personal guarantees that he had given the bank.

Gambles

A spokesman for IBRC last night declined to comment on the latest judgment.

Although only published in the 'Experian Gazette' this week, the judgment against Mr Callely was obtained in August.

The proposed development was one of the biggest gambles in Mr Callely's career.

In March 2007, he and investors John O'Dolan, Daragh Sharkey, and Denis Kenny purchased 59 and 60 Clontarf Road.

They secured a €10m loan from Investec for the purchase and demolition of the seafront properties.

Mr Callely and his wife mortgaged several of their properties on the same day that he joined the partnership.

Although the sums that were drawn down were not recorded in public filings, all the cash was received from AIB.

Within months, Mr Callely lost the Dail seat he had held in Dublin North Central since 1989, but was nominated to the Seanad with a €30,000 drop in his salary.

Mr O'Dolan, one of the co-investors, lost his life in tragic circumstances in 2008.

He was found hanged in a disused shed on lands he owned on the Barna Road in Galway.

Irish Independent

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