Cllr John O’Donnell as he appeared join the RTE Investigates programme.
A COUNTY Councillor has told a court today that he is facing bankruptcy as a result of failed business dealings and doesn’t have any money to pay compensation to a woman he drove over 16 years ago.
Cllr John O’Donnell’s finances were laid bare in a remarkable hearing at Letterkenny District Civil Court today in which the politician admitted having millions of euro of debts.
The politician said he had judgements against him from ACC Bank and AIB – with two personal guarantees worth €1M each.
Petra Kucklick, a German native from Mill Cottage, Rooskey, Creeslough, is suing O’Donnell for an outstanding €33,000 debt from a personal injury claim.
The court heard today that the councillor had paid €7,600 in 2009 but then stopped making any payments despite a court order.
The politician was at the centre of a scandal in December when he appeared on an RTE Investigates programme in which he appeared to ask for cash for political favours. He has denied the allegations.
Ms Kucklick’s barrister Laura O’Reilly, representing the Legal Aid Board, said Ms Kucklick had been awarded personal injury compensation in 2008 and Mr O’Donnell had failed to pay any of the award.
The 2008 judgement related to an incident in 2000 in which Mr O’Donnell had driven over the foot of Ms Kucklick at a building site in the county.
Today’s court heard Cllr O’Donnell had still not handed over details of his bank accounts in this state and in Northern Ireland to Ms Kucklick.
Judge Paul Kelly told Cllr O’Donnell to take the stand and over the course of almost an hour he was cross-examined on all his financial dealings.
In his evidence Cllr O’Donnell said:
- He didn’t have any salary from his wool exporting business, other than the use of a company BMW X5
- He owed a personal guarantee of €1M to ACC Bank
- He owed a personal guarantee of €1M to AIB Bank
- A plot of land at Horn Head, Dunfanaghy, had been re-possessed.
- A property investment with his brother in Kilmacrennan had been re-possessed.
- He had sued Etic Solutions – run by French crook Francois de Dietrich – for €53,000 but only got a fraction back and not enough to cover his legal costs
- He had taken two flights to Alicante in 2014 but only because his then partner had a property there
- He didn’t own a luxury camper van called ‘Betsy’ in which he travelled the entire Wild Atlantic Way last year. He said it was a £480-per-week rental.
- Donations made to Termon Ladies gaelic team, Milford GAA club and Kilmacrennan Celtic had come from either a council fund or limited companies and not him personally.
- Bringing a CocaCola truck to Kilmacrennan 14 months ago was paid through a community group
- A 2011 trip to China was paid for by the wool company.
- He didn’t own a lorry used in a St Patrick’s Day parade; the lorry was hired.
- He didn’t currently own a car but had been given a Volvo V40 free by McGinley Motors “He gave it to me as a goodwill gesture until I can buy one”.
- Bank statements from 2014 showed he had Sky, Netflix subscriptions and a rental income from properties of €2,000 per month.
- He didn’t own the Millbridge Inn and didn’t hold the liquor license for it. He was managing it free of charge or salary for family friends.
- He is surviving on €16,000-a-year county council salary plus expenses.
- He did spend almost €5,000 of his own money running in the council elections at a time when he had stopped paying Ms Kucklick.
Ms O”Reilly told O’Donnell he had paid ‘scant’ regard to the court orders against him in this case.
“I genuinely didn’t have the money to pay anything,” said the councillor.
The politician said he had been caught up in the Etic Solutions Ponzi scheme but hadn’t got his money back, just enough to cover legal fees.
Judge Paul Kelly described the Millbridge Inn situation as “shadowy to say the least”.
He said the councillor had provided only a sketchy outline of all his business dealings and earnings.
Earlier Cllr O’Donnell had sat at the back of the court room as his solicitor Kevin McElhinney told Judge Paul Kelly that his client had engaged with an insolvency practitioner.
He said his client had “significant debts” and was now engaging in the insolvency process and had put a number of proposals to his creditors.
Barrister Laura O’Reilly, for Ms Kucklick, told the judge that despite an order four weeks ago they had still not received a statement of means from the independent politician.
She said the complainant wished to continue with the legal process, saying that whilst Ms Kucklick would be a preferential creditor, a veto from another creditor would stop the process.
Judge Paul Kelly adjourned the case until March 2 when Cllr O’Donnell must provide a proper up-to-date statement of means and all bank records north and south of the Border.