Investigation into fraud at Dunne hotel
Police called in over Cape Town development
A CRIMINAL investigation has been launched into an alleged multi-million-euro fraud at the luxury South African hotel developed by Sean Dunne.
And as part of the investigation, police in South Africa may seek to question the Carlow-born builder, as well as his wife, former gossip columnist Gayle Killilea.
They and a number of company directors are being investigated over an alleged attempt to defraud the City of Cape Town of millions of euro in rates revenue by classifying bedrooms in the Lagoon Beach Hotel as individual flats instead of as hotel rooms.
Last December the Irish Mail on Sunday revealed how officials at Cape Town City Council’s valuation department were reviewing whether the local authority had been left short changed to the tune of €2.9m (40 million rand).
But it has now emerged that an official complaint has been lodged with police and a criminal investigation is under way.
The revelation comes as the father of seven and his second wife’s fall from Dublin’s high society would appear to be complete.
Last week it emerged that their marital home, ‘Ouragh’, on Dublin’s Shrewsbury Road has been sold at a knock-down price. And next month the developer faces the ignominy of having his period of bankruptcy extended.
The businessman was due to be released from bankruptcy last July but the official handling the matter now wants this extended and the case is due to come before the courts next month.
Meanwhile, according to the complaint recently lodged with the police in Cape Town, there has been an alleged rates fraud at the luxury hotel built by Mr Dunne for the past 10 years.
A copy of a sworn statement made to police describes a scheme as ‘designed to conceal the true value of the property with the intention (sic) representing the property as “residential” and as “common property”.’
The Lagoon Beach development, which boasts views of Table Mountain, was launched at Dublin’s Westbury Hotel in June 2003 by Sean Dunne’s firm Mountbrook Homes.
No response was received from Mr Dunne or Ms Killilea to attempts to contact either.
Scheme ‘designed to conceal’ property value