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1639-42 Politics • FRI OCT 29 1993 ED: FINAL SECTION: BUSINESS PAGE: 1C LENGTH: 24 . 75" MEDIUM ILLUST: photo: Ex-Miami Beach Mayor Alex Daoud left answers Assistant U.S. Attorney Allan Sullivan as U.S. District Judge Donald Graham background defense lawyer Stephen Neal center foreground and David PAUL listen SOURCE: MARILYN ADAMS Herald Business Writer DATELINE: MEMO: HOW AN UP POPULAR DOCK WAS APPROVED PAUL' S FRIEND AT CITY HALL EX-MAYOR TELLS HOW HE AIDED EX-CENTRUST CHIEF Former Miami Beach Mayor Alex Daoud matter-of-factly described for a jury Thursday how he lied, manipulated fellow politicians and took bribes to do the political bidding of former CenTrust Chairman David Paul. When Daoud finally stepped down from the stand, he was met by a long, cold stare from Paul, the man Daoud is now working to convict. Daoud, who will continue his testimony today, is the highest-profile witness yet in the 3-week-old fraud trial of Paul. The government has charged that Paul siphoned off $3 .2 million of CenTrust ' s money for personal uses -- including $35, 000 in bribes to Daoud. The government said Paul bribed Daoud to help win approvals from the Miami Beach city and Metro- Dade commissions for a huge dock behind Paul ' s Miami Beach estate. "Why was it that you appeared at the Miami Beach and Dade County commission meetings?" asked Assistant U.S. Attorney Allan Sullivan. "I was there to get the (dock) pilings passed, " Daoud responded. "I was being paid. " Daoud, who was tried on corruption charges last year, pleaded guilty to taking a bribe from Paul . But this is the first time Daoud has spoken publicly about the episode. Daoud informed the jury he is testifying against Paul in hopes of reducing his own five-year prison sentence, scheduled to begin in December. Prosecutors appeared pleased with Daoud' s 75 minutes of testimony. Afterward, Daoud and Paul declined to comment. Defense lawyer Stephen Neal, who has not yet cross-examined Daoud, only said, "It ' s not over yet. " Daoud spoke amiably, almost eagerly, about his criminal conviction, imminent prison term and his dealings with Paul. According to Daoud, the deal with Paul was struck in spring 1988 at the second of two meetings at the bank. The Miami Beach commission had just defeated the proposed dock for Paul ' s 94- foot yacht, but Paul hadn't given up. When Daoud first stepped into Paul ' s office, "the first thing I was greeted with were pictures of pilings in back of his house. He told me he had invested all this money in the dock -- $20, 000 or $30, 000 -- and the dock was no good without the pilings. He couldn' t put the boat in without the pilings, so the boat was no good. Mr. Paul was asking for my support. " At the second meeting about a week later, "Mr. Paul stated he couldn't believe there still was opposition to the dock, " Daoud said. "Then he changed the tone of the meeting. He told me what a bright political future I had. He told me he 'd like to retain me. " Paul offered to pay $5, 000 every three months for Daoud' s political influence, Daoud said. "I said fine. Very good, " he said. The two men then spun their strategy to outmaneuver vocal opponents to the dock, including some commissioners, Paul ' s La Gorce Island neighbors and environmentalists. Daoud testified that the two men agreed to repeatedly delay the dock vote until opponents grew tired. And Paul agreed to hire Daoud, who is a lawyer, supposedly to do legal work for Old American Insurance, a former CenTrust subsidiary based in Missouri. "I didn' t even know what Old American was, " Daoud said. "I had done no banking or insurance work before. I didn't expect to do any work for Old American. " After the Beach commission approved the dock, Daoud' s work wasn' t over, he said. He testified that he contacted four county commissioners to enlist their support: Barbara Carey, Harvey Ruvin, Barry Schreiber and Sherman Winn. Only Winn still sits on the commission. Daoud told no one he was on Paul ' s payroll. Daoud recalled in detail that he telephoned Winn, whose daughter, Susan, was a Miami Beach city employee at the time. She is still employed by the city. "I told him what a wonderful job his daughter was doing and what a shame that people wanted to get her fired, " Daoud said. Daoud said he then turned the conversation to the dock and sought Winn' s support. The dock was approved. Daoud read aloud to the court a thank-you note he later sent to Winn. "Oh, come on, " Winn exclaimed Thursday when asked about the phone call. "I never spoke to him about a dock. That ' s nonsense. " Winn said he didn't remember a thank-you letter either. But Winn' s staff called The Herald late Thursday to say a thank-you note from Daoud had been found in their files. "Commissioner Winn does not recall the letter, " said Winn' s aide, Mario Artecona. "But believe me, if a conversation had occurred about his daughter Susan, he would remember it. " ADDED TERMS: paul probe END OF DOCUMENT.