Esat reimbursed payment for FG, tribunal told

Today it emerged at the Moriarty tribunal that a $50,000 payment by the Norwegian telecommunications company Telenor to Fine …

Today it emerged at the Moriarty tribunal that a $50,000 payment by the Norwegian telecommunications company Telenor to Fine Gael was reimbursed by Esat Digifone.

But the donation appeared in the company's accounts as a consultancy fee, not as a political donation, former Esat CEO Mr Barry Maloney told the tribunal.

He said that as a result it was suggested, in 1997 during a series of informal meetings of the board of directors, that the payment be reclassified as a political donation to avoid any irregularities.

However, despite the 1997 meetings it was not reclassified at the time, Mr Maloney said.

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It also emerged in evidence this morning that an article published in the Sunday Business Poston March 16th this year, in which Esat denied reimbursing Telenor, was based on a press statement used by Esat in answer to inquires about the payment.

The statement read: "Esat Digifone would like to state we have no record in this company of ever reimbursing to Telenor an amount of $50,000 in respect of contributions to the Fine Gael party."

But Mr Gerry Healy SC for the tribunal suggested the directors of Esat knew this statement was misleading as the payment was on the books as a consultancy fee and discussions had taken place over its reclassification.

Mr Maloney said he was in no position to comment on this as he was in the US at the time and uncontactable by the company's PR people who had drawn up the statement.

Mr Maloney continues his evidence tomorrow morning.