Payments comment `meant as bravado'

The former chairman of Esat Digifone, Mr Denis O'Brien, will dismiss as "bravado" his remarks to a colleague in 1996 that he …

The former chairman of Esat Digifone, Mr Denis O'Brien, will dismiss as "bravado" his remarks to a colleague in 1996 that he made two £100,000 payments in connection with a bid for the State's second mobile phone licence, the tribunal heard.

Counsel for the tribunal, Mr Jerry Healy SC, said there would be conflicting accounts of when and where the comments were made to the former chief executive officer of Esat Digifone, Mr Barry Maloney.

Mr Maloney, he said, had told the tribunal Mr O'Brien made the comment in the offices of Esat Digifone, but Mr O'Brien would claim it was made while both men were out running near Roundwood, Co Wicklow.

Solicitors for Esat Telecom were informed of the remarks in October 1997 by Mr O'Brien and details of his consultation with the solicitors were opened to the tribunal.

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Mr O'Brien insisted that there was nothing in the "allegation" and that it was "destructive". Spreading it would be "damaging to all, especially the company . . . it was akin to starting a fire in a cinema . . . and it was neither responsible nor necessary to inform the board of Esat Telecom".

Another statement made to solicitors by Mr O'Brien in October 1997, in connection with the allegation, was read.

It said: "Barry was complaining about the invoices received by Esat Digifone from consultants and lobbyists in relation to the bid. I wanted him to pay them because they were from people I had recruited. This was 12 months after the bid had succeeded and many of them had still not been paid. I indicated that if the company reneged I was honour-bound to make the payments, and I added (falsely) that if you think you've got problems, I have already paid 200 grand to other people", the statement said.

He had hoped this would encourage Mr Maloney to pay the bonuses to people such as the former government press secretary, Mr P.J. Mara, for consultancy services provided.

Mr O'Brien said he and Mr Maloney "spoofed a lot" while out running. "Barry and I had been friends for 20 years and often talked about sport, business, money-making schemes, women and other things, with fantasy and reality equally mixed. At least half of what we said was bravado", his statement said.

Later, Mr Healy outlined how, when the second GSM licence was awarded in May 1996, the shares in Esat Digfone were held by Esat Telecom (40per cent), Telenor (40 per cent) and IIU Nominees Ltd (20 per cent). He said it appeared that the shares in IIU Nominees were beneficially held for Mr Dermot Desmond.