Desmond tells Tribunal he suspected flotation deferral

Financier Mr Dermot Desmond was suspicious of attempts by former Esat Digifone chief executive Mr Barry Maloney to postpone the company’s flotation in 1997, the Moriarty tribunal heard this morning.

The tribunal heard that Mr Desmond - a major shareholder in Esat Digifone at the time - was concerned about Mr Maloney’s motives in raising a conversation he had with Mr Denis O’Brien.

Mr Maloney claimed these suggested a "third party" knew of Mr O'Brien's intentions tomake paymentsto Mr Michael Lowry. This would seriously damage Esat Telecom, he claimed.

The tribunal was read notes of a board meeting on October 23rd 1997 taken by Mr O'Brien.

Mr O'Brien confirmed Mr Desmond said any decision to postpone the Esat Telecom Initial Public Offer would "undermine the stakeholders" of the company.

"There is a lust to overthrow success," said Mr Desmond.

Mr Denis O’Brien told the tribunal today this wasa reference to Mr Barry Maloney. He said he shared his view privately with a number ofthe board members that Mr Maloney was trying to derail the process, and that Mr Desmond agreed with him

Mr Maloney had claimedMr O’Brien told him he [O'Brien] had made two payments of £100,000 to an unspecified person. He assumed this person was Mr Lowry.

A series of meetings of the board of directors of Esat Digifone were held in late 1997 to discuss the implications of the claims to the impending flotation.

The tribunal heard Mr Desmond concludedthere was no evidence to suggest any payment had been made although Mr O'Brien had expressed an intent to do so.

Mr O’Brien told the tribunal his working relationship with Mr Maloney was extremely strained.

"That is why I went running with him - to see if we could get some working relationship going."

His comments on the two payments of £100,000 were just bravado, he repeated to the tribunal.

Mr O’Brien claimed yesterday he felt Mr Maloney had introduced the whole notion of an "intermediary" or "third party" between him andMr Lowry in order to discredit him. He said he wanted to "derail" the flotation of the company for his "own reasons".