Evidence of Mulhern in conflict with that given by Stafford

All three founders of Century Radio have now given differing accounts of the circumstances in which one of them, Mr Oliver Barry, gave £35,000 to the Minister for Communications, Mr Ray Burke.

Mr John Mulhern, the businessman who invested secretly in the station, yesterday denied any advance knowledge of the payment made by Mr Barry in May 1989. Mr Mulhern said he learned of it "a considerable time later", probably by the end of that year.

He was made aware of it by the third co-founder of Century, Mr James Stafford, who said Mr Barry had paid the money on behalf of Century.

This conflicts with the evidence of Mr Stafford, who told the tribunal that he only learned of the payment in March 1991. Mr Stafford also insisted the money was paid by Mr Barry personally and not on behalf of Century.

Mr Barry has yet to give evidence, but his statement says the three men agreed in advance on the payment, which was made on behalf of Century.

Mr Stafford was best man at Mr Mulhern's wedding to Ms Eimear Haughey, the daughter of the former Taoiseach.

Mr Mulhern told the tribunal he wasn't very happy to learn of the payment afterwards but there wasn't much he could do about it then. "I wouldn't approve of that size of political donation. I came from a different school from Oliver; he likes politics, he was always involved in politics of many hues."

Century was an "infant business" and couldn't afford "that sum of largesse".

Mr Mulhern, who is the main shareholder in Clayton Love Distribution, said the idea for Century arose one day "on the 8.30 train to Cork" in late 1987 or early 1988. "I was reading in the paper that there were going to be commercial licences and Oliver Barry happened to be on the train."

Mr Mulhern introduced Mr Barry to another friend of his, Mr Stafford. The three men took equal one-third stakes in the new venture. Mr Mulhern invested £300,000 in 1989 and a further £310,000 in late 1990, but says he was not involved in the day-to-day running of the business.

"I was dealing with two friends. I assumed my interests were being looked after," he said. "I didn't want to be updated. I didn't have time to get involved in the machinations." Asked about a number of faxes sent to him by Mr Stafford, the witness said he never received them.

Mr Mulhern said he knew the financier, Mr Dermot Desmond, and the then Government press secretary, Mr P.J. Mara, for about 20 years. He did not know that Mr Desmond had intended to invest in Century.

He learned of a "rumpus" over Mr Mara from Mr Stafford, who told him Mr Mara wanted a job with the company. "Usually when there was a whinge you heard it from Mr Stafford." It was not in the best interests of Century to take on such a high-profile person, he said.