Lowry suggested partner for O'Brien

Former minister Michael Lowry suggested to Denis O’Brien that he get a particular partner for his mobile phone consortium prior…

Former minister Michael Lowry suggested to Denis O’Brien that he get a particular partner for his mobile phone consortium prior to the businessman submitting his successful bid, the Moriarty Tribunal heard today.

A fax sent by Mr O'Brien in April 1995 to a venture capitalist based in London, Massimo Prelz, was read out at the tribunal.

One paragraph reads: "France Telecom. The minister spoke to me yesterday and suggested I contact France Telecom as they have no partner, and I am meeting them tonight for dinner."

Tribunal counsel Jacqueline O'Brien SC told Mr Prelz that Mr Lowry, then minister for transport, energy and communications, had met Mr O'Brien the previous day at a telecoms conference.

Mr O'Brien met representatives of the French company in Paris for dinner but did not conclude any deal with them. He eventually submitted a bid with Norwegian company Telenor, with the bid including a statement that Mr Prelz's company,

Advent International, had made a commitment to invest up to £30 million in Mr O'Brien's company, Communicorp, if the bidding consortium, Esat Digifone, won the licence.

The tribunal is hearing evidence from Mr Prelz as part of its inquiry into the strength of the commitment made by Advent.

On October 3rd, 1995, when the licence bids were being assessed as part of a sealed process, Mr O'Brien sent a fax to Mr Prelz in which he said the letter outlining Advent's financial commitment "did not satisfy" the Irish authorities. He said that for this reason it was "necessary to make alternative arrangements".

The tribunal is investigating the circumstances whereby Dermot Desmond's IIU Ltd, became a 20 per cent shareholder in Esat, while the bids were being assessed by Mr Lowry's department. IIU became a financial backer of Communicorp, replacing Advent.

Ms O'Brien said the tribunal had been told that in 1995, Mr O'Brien said to Per Simmonsen of Telenor he had met Mr Lowry in a pub and Mr Lowry had told him that Mr Desmond should be involved in the Esat bid.

Mr Prelz said he was never told of this meeting, and would have remembered it if he was told, as his firm, which has its headquarters in Boston, was very aware at the time of the US laws on foreign corruption. Mr Prelz is continuing his evidence.

The tribunal has already issued its provisional findings and its final report is expected early next year.