A number of articles in the Irish Mirror newspaper meant, and were understood to mean, that Mr Denis O'Brien, chairman of 98 FM and Esat Digifone, paid £30,000 as a bribe to the former Fianna Fail minister, Mr Ray Burke, the High Court was told yesterday.
Mr Garrett Cooney SC, for Mr O'Brien, told Ms Justice McGuinness and a jury that the newspaper articles of June 19th, 1998, suggested that at least part of Mr O'Brien's business success was based on corruption.
Mr O'Brien (41), who is chairman and founder of 98 FM radio, is suing for libel. The action is against Mirror Group Newspapers Ltd, Canada Square, Canary Wharf, London; Mr Piers Morgan, editor-in-chief of the newspaper; Mr Neil Leslie, editor of the Irish edition; and a journalist, Karl Brophy.
It is claimed the articles complained of meant and were understood to mean that Mr O'Brien had paid a £30,000 bribe to Mr Burke, who was at the time a member of the Government. The defence admits the words were published of and concerned Mr O'Brien but deny they were defamatory.
Mr Cooney read from a front page story of the newspaper headed: "Burke in new £30,000 probe". It stated: "The Flood tribunal is to probe an anonymous claim that Mr Burke received the donation from top radio boss Denis O'Brien in 1989. According to the confidential letter - seen by the Irish Mirror - the former Dublin North TD allegedly received a donation of £30,000 when he was minister for communications responsible for the allocation of radio licences in Ireland.
"Mr O'Brien's application for a licence for his station, 98 FM, was one of the two successful tenders for the lucrative Dublin area at the time. Mr Burke performed the new station's official opening in November 1989. No evidence has yet been uncovered to support the allegations made in the note."
Counsel said Mr O'Brien's solicitors had written to the newspaper seeking a full apology within 24 hours. Solicitors for the newspaper in London had replied, saying they hoped Mr O'Brien agreed that in the interests of democracy there should be unfettered - but, of course, fair - reporting of the Flood tribunal.
They added that the Flood tribunal was set up to examine the financial affairs of Mr Charles Haughey and Mr Michael Lowry, and that part of the investigation would cover the licence awarded to Esat Digifone to operate the mobile phone network.
Mr Cooney said the Flood tribunal was not established to examine the affairs of Mr Haughey and Mr Lowry - that was the Moriarty tribunal - or to investigate the Esat licence.
Counsel said the story was based on a letter written anonymously to the Flood tribunal. It was not true that Mr Burke had granted the licence for 98 FM. That had been done by the IRTC. Any fair-minded person would have ignored the anonymous letter.
In his evidence, Mr O'Brien said he and his consortium had got a licence for 98 FM in 1989. Mr Burke was minister for communications at the time, but Mr O'Brien had dealt only with the IRTC.
The hearing continues today.