[Article] Jackson Way receives €13 million compensation

Victor

http://home.eircom.net/content/irelandcom/breaking/1975050?view=Eircomnet

Jackson Way receives €13 million compensation
From:ireland.com
Monday, 17th November, 2003

Property company Jackson Way has received €13 million in compensation for lands it owned in Carrickmines, Co Dublin which were acquired by Dún Laoghaire-Rathdown County Council.

Jackson Way had initially sought €113 million for around 20 acres of land which was acquired by the council to build the proposed South Eastern Motorway. The shelf company - which has been investigated by the Mahon tribunal and whose beneficial owners are the businessman Mr Jim Kennedy and solicitor Mr John Caldwell -then revised the compensation claim downwards to €47 million.

About 20 acres of the 100 acres owned by Jackson Way at Carrickmines was acquired for the motorway. The council says it was willing to pay only €7.6 million for this land.

The council confirmed that it had received this morning a letter from the independent arbitrator, Mr John Shackleton, dated November 14th, that the compensation to Jackson Way was to be €13 million.

During arbitration hearings in October, lawyers for the council claimed that the company's evidence on its ownership structure was not "credible" because it conflicted with evidence given to the Mahon tribunal, which is investigating allegations of planning corruption involving Jackson Way.

They also claimed the Jackson Way land was subject to a restrictive covenant which would prevent any houses being built on it. This would adversely affect the land's value and should be taken into account before any compensation award was determined.

However, Mr Shackleton said his job was merely to decide on a claim for a piece of property. Issues relating to the title had nothing to do with him. Jackson Way would have to prove its title to the land after any award was made before it could collect its money. If issues arose which affected the valuation of the land, these could revert to him and he would deal with them "ten years down the line".

Meanwhile, Labour Party Councillor on Dún Laoghaire-Rathdown County Council, Mr Denis O'Callaghan has tabled a motion calling on the Council not to pay any more money to the Jackson Way company pending the findings of the Mahon Tribunal into the company.

"I have a motion before the Council calling on Council management not to pay any more money to the company until such time as the findings of the Mahon Tribunal are published," Mr O'Callaghan said in a statement.

"Furthermore, I have also called on the County Council not to proceed with any rezoning of the Jackson Way properties in Carrickmines until such time as the findings of the Tribunal are made clear.

"On the basis of legal advice, the County Manager has advised me that the Council cannot withhold arbitration awards. I call on the Minister Martin Cullen therefore not to permit any further payments pending the Tribunal findings".

dmeehan

in one end and out t'other

CAB have their eyes on this cash now

Sleipnir

I can't help but think that Lawlor is mixed up in this somewhere.
Hopefully CAb can find out who actually own the company.
I'd imagine Jackson Way are saying
"aww hell, keep the money. Just don't come looking for us!"

Victor

http://home.eircom.net/content/irelandcom/topstories/1978122?view=Eircomnet

CAB may seize €13m award to Jackson Way firm
From:ireland.com
Tuesday, 18th November, 2003

The Criminal Assets Bureau (CAB) is to begin an immediate examination of the €13 million arbitration award made to controversial property company Jackson Way with a view to seizing it, write Paul Cullen and Conor Lally.

CAB has four to eight weeks in which to decide on whether to seize the award before Dún Laoghaire/Rathdown County Council makes the payment to the company for lands acquired at Carrickmines for the M50 motorway.

The council has no legal option other than to pay the award made by the arbitrator, provided Jackson Way can prove legal title to the 20 acres of land. Any further delay will lead to a higher bill, as interest is payable.

Jackson Way is under investigation by the Mahon tribunal, which has heard allegations from former Government press secretary Mr Frank Dunlop that one of the company's owners, Mr Jim Kennedy, provided £25,000 to bribe councillors for the rezoning of the company's land at Carrickmines.

The tribunal completed its year-long public investigation of the allegations last month, but a report is not expected for some time.

It is understood CAB must establish that the Jackson Way lands increased in value as a direct result of corruption in the planning process.

If CAB is satisfied the value of the land was positively affected by corruption, the bureau will then apply the proceeds of crime legislation and argue the award to Mr Kennedy represents the proceeds of crime. CAB would then go to the High Court and freeze the money before permanently confiscating it.

Jackson Way initially sought €113 million for the land, but then revised its claim downwards to €47 million. The council offered only €7.6 million.

The arbitrator, Mr John Shackleton, valued the land itself at €9.691 million, but added €2.296 million for "injurious affection", or the amount by which the rest of the company's land was devalued by the building of the motorway.

He also awarded €873,000 for "disturbance". His award is lower than the prices achieved in recent land sales in the area.

Mr Shackleton noted that the company's legal title was freehold with vacant possession, but was subject to a number of easements, way leaves and rights-of-way.

A council spokesman said this legal title would be carefully examined before any payment was made. He estimated the conveyancing procedure could be completed in four to eight weeks if no title problems arise. "Anyone who feels they have a legitimate interest in the outcome of this matter should know that the endgame will be reached at the end of this period," he said.

Any payment made by the council can be recouped from the National Roads Authority.

During the arbitration hearings, lawyers for the council claimed that the company's evidence on its ownership structure was not "credible" because it conflicted with evidence given to the tribunal.

Also in October, solicitor Mr John Caldwell admitted misleading the planning tribunal about the ownership of Jackson Way.

He originally denied having any ownership of Jackson Way, but now concedes that he has an "indirect beneficial interest".

The tribunal has spent four years trying to unravel the mystery of Jackson Way's ownership, but now believes solicitor Mr Caldwell and Mr Kennedy control the company through offshore trusts.

A Jackson Way source said yesterday the amount of the arbitrator's award was "in the ballpark of what we expected, only a year late".

While the award was far less than the company had sought, it was 40 per cent more than the council had been prepared to pay.

A local Labour councillor, Mr Denis O'Callaghan, has tabled a motion calling on the council not to pay any more money to Jackson Way pending the findings of the tribunal. Mr O'Callaghan also called on the council not to proceed with any rezoning of the rest of Jackson Way's land in Carrickmines until the tribunal reports and he urged the Minister for the Environment, Mr Cullen, not to permit any further payments pending the tribunal findings.

Tribunals cannot stop funds going offshore: page 3

Victor

http://home.eircom.net/content/unison/national/1978465?view=Eircomnet

Freeze on €13m award to firm in bribes probe
From:The Irish Independent
Tuesday, 18th November, 2003
Treacy Hogan and Paul Melia

A MYSTERIOUS shelf company being investigated by the Mahon Tribunal and the Criminal Assets Bureau has been awarded €13m of taxpayers' money for M50 land compensation.

But unless Jackson Way Properties can prove freehold title to the land, Dun Laoghaire Rathdown Co Council will not pay the award.

The company also faces the possibility that the CAB will seize the award pending the outcome of tribunal investigations.

However, the real cost of the award could rise considerably if the company can show it does hold the freehold title.

The council will also have to pay interest on the €13m from when it took possession of the land in mid-2000. It also has to pay Jackson Way's legal costs.

The Mahon Tribunal is investigating claims by former Government Press Secretary Frank Dunlop that he bribed local councillors to rezone the lands owned by Jackson Way.

The CAB is also investigating the company. If they find councillors received corrupt payments from the company they may apply to confiscate any compensation.

The beneficial owners of the company are not known. But yesterday it was awarded the money by independent property arbitrator John Shackleton.

This followed a 17-day public inquiry into the compulsory purchase of 20 acres at Carrickmines in south Dublin for the South Eastern Motorway (M50).

Both parties had agreed to abide by the arbitrator's decision.

The €12.86m award, while binding, is a long way from the €113m originally sought by the company.

It subsequently revised this downwards to €47m. The council was prepared to pay €7.6m.

Under the €12.86m award disclosed yesterday:

* €9.691m goes for the land.

* €2.296m for the impact on adjoining lands owned by the company.

* And €873,000 for disturbance.

Shortly after the award was announced, a council spokesperson told the Irish Independent the company would have to prove they have full freehold title before the money is handed over.

"We've just received the award and want to consider its implications," the spokesperson added.

The council is maintaining that there are restrictions on developing the land under a 1947 covenant, and that this covenant should have been taken into account when the award was being made.

If the company cannot prove full freehold title, the council could seek a court ruling on whether the award should stand, sources said.

Arbitrator Mr Shackleton said during the inquiry the existence of the covenant would have no bearing on the amount of compensation he would award. Yesterday his award of €12.86m was communicated to both sides.

The statement by the council that it is not going to hand over the award until the legal status of the lands is satisfied is certain to lead to further wrangles.

Jackson Way was struck off the UK companies register for failing to file annual returns but was restored in July.

This means it is in line to receive any compensation.

But the Criminal Assets Bureau may seize the award until the Mahon Tribunal has finished its investigations into the company.

The firm, whose sole director Alan Holland made a surprise appearance during the arbitration hearing, maintains the remainder of its 88-acre site is unlikely to be developed for residential use because it is so close to the motorway.

The move to re-register Jackson Way after it was struck off the UK companies register was essential as compensation could not be paid to a company which technically did not exist.