Further details of the claim that leading Fianna Fail figures sought bribes in return for awarding commercial radio licences are expected to emerge when Mr James Stafford gives evidence at the Flood tribunal today.
Mr Stafford, the co-founder of Century Radio, has alleged to the tribunal that the disgraced former Fianna Fail minister, Mr Ray Burke, and the party press secretary during the Haughey era, Mr P.J. Mara, sought payments of up to £90,000 in return for the award of broadcasting licences.
If proven, the claim could cast doubt on the validity of many of the licences handed out during the first round of awards when Mr Burke was minister for communications.
The allegation, which is strenuously denied by Mr Burke and Mr Mara, emerged during the opening statement by a tribunal lawyer on the investigations into Mr Burke's conduct as minister for communications in the late 1980s and early 1990s.
Mr Stafford has told the tribunal he was told by his fellow director at Century, Mr Oliver Barry, that to secure a broadcasting licence: "You're going to have to pay money to Ray Burke and P.J. Mara." The amounts allegedly specified were £90,000 for a national licence, £75,000 for one of the two Dublin franchises or £50,000 for a local radio licence.
Mr Pat Hanratty SC, for the tribunal, said the allegation had no probative value. He pointed out that radio licences were awarded by the Independent Radio and Television Commission, and not the minister for communications.
Century was awarded the first national commercial radio licence in January 1989. The tribunal is investigating the circumstances surrounding Mr Barry's payment, four months later, of £35,000 in cash to Mr Burke.
Mr Stafford alleges Mr Barry told him he was approached several times by Mr Mara, who said he was owed money by Century. He also claims that on two occasions - one of them at the wedding of Mr Ciaran Haughey in Kinsealy in September 1990 - the financier Mr Dermot Desmond, told Mr Stafford he should pay the money owed to Mr Mara.
According to Mr Stafford, he refused to pay any money.
Mr Hanratty revealed yesterday that Mr Barry and Mr Stafford concealed the involvement of Mr John Mulhern, the son-in-law of the then taoiseach, Mr Haughey, in Century.
In contravention of the demand by the IRTC for full information on the ownership of radio stations, Century failed to list Mr Mulhern's stake, estimated by Mr Hanratty at about 17 per cent.
The three men also had an interest in another bid for a radio licence which was not disclosed, Mr Hanratty revealed. This also contravened IRTC regulations.
Two months before Mr Barry paid money to Mr Burke, the politician intervened in a row between Century and RTE over transmission fees. Mr Burke directed RTE to charge about £150,000 in return for allowing Century to use its network of transmission facilities.
This was one-quarter of the fee level RTE agreed with Department of Communications officials, and less than half the amount Century offered to pay.
In 1990, Mr Burke responded to pleas by Mr Barry and Mr Stafford by introducing a cap on RTE's revenue, in spite of widespread opposition.
