Verona affair casts shadow on Leo

FG judgment in question as Murphy’s business partner shown to be tax fraudster

DIVISIONS are deepening within Fine Gael over the continued support for controversial candidate Verona Murphy to run in the Wexford by-election, after it was revealed that her business partner is a tax defrauder.

Ms Murphy runs a haulage firm, Drumur Transport Ltd, with her business partner Joseph Druhan.

The offences related to Mr Druhan’s business as a sole trader, but Ms Murphy and Mr Druhan later merged their businesses and set up as a limited company in 2009.

In 2011, Mr Druhan, a haulier, from Ballysheen, Carne, made a settlement of €74,271 with the Revenue, including interest and penalties, after under-declaring VAT.

Separately, he was also given a 12month suspended jail sentence.

Mr Druhan used bogus invoices he stole from the public counter of a Rosslare-based fuel company and then used this paperwork to claim refunds for €5,199 worth of diesel.

‘He did something wrong and is remorseful’

These bogus claims were made over a three-year period between January 2005 and October 2008.

But the scam was uncovered by the taxman and the Wexford-based businessman was prosecuted by the Revenue Commissioners, a court report in the Wexford People in 2012 revealed.

He pleaded guilty at Wexford Circuit Court to eight counts of knowingly making incorrect VAT returns and with also failing to keep true records of all VAT transactions from January to December 2005.

‘Significant discrepancies’ were discovered during the course of the probe by one of the Revenue Commissioners’ officers.

Among the questionable transactions uncovered were those made with bogus invoices from Wexford fuel firm Rosslare Fuels. These were handwritten in biro and the tax official told the court that the haulier had used this bogus paperwork to reduce his tax bill and claim a VAT refund worth €5,199.

After the scam was uncovered, the businessman was interviewed and admitted stealing the invoices. The tax official said: ‘He said he took them illegally from the public counter without their knowledge.’

Meanwhile, the court was told that at the time of Revenue’s investigation the Wexford haulier had two lorries on the road, three to four employees and his company had an annual turnover of €520,000.

But, according to Druhan’s barrister Dorothy Donovan BL, the businessman ceased trading around 2009. She also revealed that in order to settle his affairs with the taxman the haulier had sold his car, took out a €30,000 loan, and moved in with his daughter so that he could rent his home. Ms Donovan said: ‘Mr.

Druhan accepts he defrauded the Revenue. Unfortunately, his business got into difficulty and he did something wrong. He is certainly very remorseful.’

Judge Teehan handed down a 12month sentence for each offence – which he suspended for 12 months – on the condition that he keep the peace, is of good behaviour and tax compliant.

Ms Murphy, who is the president of the Irish Road Haulage Association, initially drew criticism after she suggested that asylum seekers who come to Ireland needed to be ‘deprogrammed’ as they may have been influenced by ISIS.

She has since apologised for the remarks.

Now, sources within the party claim that Mr Varadkar is ‘losing confidence in a candidate who is still well positioned to take a seat’.

A Red C poll for the Business Post has revealed that support for Fine Gael has fallen by two points, to 30, though it remains the dominant party, followed by Fianna Fáil on 24 points. One party source said: ‘Leo is not so much backing as running away from her. He does not like failure, and he has very little in common with a female haulier from the country.’

But Mr Varadkar’s judgment was also being called into question, with one source noting, ‘[Maria] Bailey first and now this. It’s not comforting...’ The Taoiseach admitted: ‘There is no detailed standard protocol for vetting candidates but obviously we do our best to make sure they are vetted.’