A lawyer for the government has described allegations linking Belfast property developer Peter Curistan to IRA money-laundering as "baseless".
Peter Curistan is taking legal action against the government
Mr Curistan and his company Sheridan were the subject of the allegations in some newspapers and by the DUP's Peter Robinson in the House of Commons.
Mr Curistan is taking legal action after his firm was dropped as the preferred developer of land in Belfast.
The government lawyer said the decision was not due to the IRA allegations.
Stephen Shaw QC said the audit which led to Sheridan being dropped from the project at Queen's Quay in December 2006, focused on its commercial fitness.
It also emerged that two politicians, Gerry Adams and Mark Durkan, had written to the government saying Mr Curistan had been shamefully and improperly treated because he was a Catholic businessman in a matter of commercial rivalry.
The case continues.