The Irish Mirror intended to convey that Mr Denis O'Brien, of Esat Digifone and 98FM, had bribed former Minister, Mr Ray Burke, and other politicians and received the right to establish a radio station and a mobile phone company, the High Court was told yesterday.
Mr Garrett Cooney SC, for Mr O'Brien, who has taken libel proceedings against the newspaper, told Mr Justice O'Sullivan and a jury the allegations were based on an anonymous letter and were "entirely false from beginning to end".
The action is against Mirror Group Newspapers, London, publishers of the Irish Mirror; Mr Piers Morgan, editor-in-chief; Mr Neil Leslie, editor of the Irish edition; and Mr Karl Brophy, author of the articles.
The newspaper denies libelling Mr O'Brien.
At the opening of the case yesterday Mr Cooney read the articles published on June 10th, 1998. The page one story was headed: "Burke in new £30,000 probe." It said "Former Minister Ray Burke is to be investigated for a THIRD alleged payment of £30,000, the Mirror can reveal. 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 for the allocation of radio licences in Ireland. Mr O'Brien's application for a licence for his station, 98FM, 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. `This may be a totally malicious effort to smear either Mr Burke or Mr O'Brien but the letter contains detailed allegations,' said a top political source last night."
The newspaper also said: "Denis O'Brien, the man who is alleged to have made the latest £30,000 donation, is no stranger to political controversy.His hugely successful mobile phone company, Esat Digifone, beat off heavy international competition to win Ireland's second mobile telephone operating licence which was awarded by disgraced former Minister Michael Lowry in 1996.
"The decision on the granting of the licence was taken despite the fact that no official memorandum was ever taken to the Cabinet meeting that was chaired by then Taoiseach John Bruton. "However, a number of investigations carried out into the awarding of the licence uncovered no impropriety."
Mr Cooney said the reports were intended to convey that Mr O'Brien was a corrupt man who had bribed politicians, including Mr Burke and possibly Mr Lowry, and had been investigated by the Flood and Moriarty tribunals. These allegations were entirely false from beginning to end. An anonymous letter was the basis for the allegation, counsel added.
Mr O'Brien sought a full and unqualified retraction and apology within 24 hours.
The paper's solicitors wrote a reply saying: "I hope that your client agrees that it is of the utmost importance that in the interests of open government and democracy there should be unfettered (but of course, fair) reporting of the evidence given to and the proceedings of the Flood tribunal.
"As you are aware, the Flood tribunal was set up to examine the financial affairs of Charles Haughey and Mr Lowry and part of the investigation will cover the licence awarded to Esat Digifone to operate the mobile phone network."
Mr Cooney said this was untrue. The Flood tribunal was not set up to investigate the financial affairs of Mr Haughey and Mr Lowry and investigate the mobile phone network. The affairs of Mr Haughey and Mr Lowry were being examined by the Moriarty tribunal. There was no investigation of Esat by either.
Counsel quoted further correspondence in which Mr O'Brien's solicitors said the licence application for 98FM was made to the IRTC and at no stage was Mr Burke involved in consideration of applications for radio licences. They again emphasised that Mr O'Brien at no stage made any donation of any description to Mr Burke.
The hearing continues today.