If the Independent Radio and Television Commission had known about the involvement of Mr Charles Haughey's son-in-law, Mr John Mulhern, in Century Communications, the company's application to the IRTC for a national radio licence would have been considered partisan, the tribunal was told.
Former Century director Mr James Stafford said he took the view that Mr Mulhern's involvement should not be known "because he was the Taoiseach's son-in-law and I considered the application to the IRTC would be considered to be partisan".
Mr Pat Hanratty SC, for the tribunal, asked him if he was the one who decided not to reveal Mr Mulhern's involvement.
Mr Stafford said that "reveal" was not the right word.
It was his view that Mr Mulhern should not be involved.
Mr Mulhern never owned any shares in Century. He was not a registered shareholder and did not have deeds of trust.
Mr Stafford said he and Mr Barry would continue to have 51 per cent of the company and they could not have disposed of that without the permission of the IRTC.
The chairman asked whether Mr Mulhern would have been entitled to one-third of £50,000 if Century had been a successful venture and if, for example, the profit was £100,000.
Mr Stafford replied that the venture ended up losing £8 million.
If the venture had been successful, he would have had to ask Mr Mulhern to exercise his option if he wanted his dividend.
He had known Mr Mulhern for approximately 30 years and went to dinner with him once a month for 20 years.
Mr Mulhern was happy to accept the arrangement. There was a verbal option agreement.
Mr Mulhern could have asked for a transfer of shares, but the application would have had to have gone to the IRTC. However, it was only an option, he said.
In early 1988, Gay Byrne was interested in the venture and the broadcaster had several meetings with Mr Barry and others, Mr Stafford said. However, Mr Byrne's interest had terminated around July 1988.
At the beginning they had not known whether the licence would be for Dublin radio or national commercial radio. When it was resolved in favour of a national franchise, Mr Byrne was not very happy about going up against RTE and withdrew.
Mr Stafford said Mr Byrne had told them he favoured a local Dublin licence.