Mulhern's role was kept secret, says ex-chairman

The chairman of Century Radio has said the involvement in the company of Mr John Mulhern, son-in-law of Mr Charles Haughey, was kept secret from him by the other directors.

An accountant and partner with KPMG, Mr Laurence Crowley was an insolvency expert with a high-profile record in company liquidation. He is currently chairman of Bank of Ireland.

Mr Crowley said he only learned of Mr Mulhern's investment when it emerged at the tribunal. Asked what he thought his involvement was, the witness said he believed Mr Mulhern had some share in the "upside" if the company became profitable.

Century first approached Mr Crowley in late 1988, and he became non-executive chairman in February 1989, a month after the station was awarded the national radio franchise.

He attended a number of meetings at which Mr Mulhern was present, but was not told he was an investor. He pointed out that Mr Mulhern was not a registered shareholder.

Mr Pat Hanratty SC, for the tribunal, produced hotel invoices to show Mr Crowley stayed in Claridges in London with Mr Mulhern and his wife, Mr Barry and Mr Stafford in January 1989. This was just after Century got the franchise. Given that Mr Barry and Mr Stafford were directors, and the witness was about to become chairman of Century, was it not likely he learned Mr Mulhern was an investor?

Mr Crowley said he couldn't say. He couldn't recall staying in Claridges but obviously he had.

He expressed surprise when told by Mr Hanratty that effectively there were no negotiations on transmission charges between RTE and Century. Mr Crowley said he couldn't recall hearing that RTE and the Department of Communications had reached agreement on a transmission charge of over £600,000. The notes of a Century board meeting chaired by Mr Crowley in February 1989 say that the minister for communications, Mr Burke, would issue a directive reducing the transmission charges to £375,000. This was a month before Mr Burke actually invoked the directive and before Century formally applied for it.

Mr Crowley said he had no recollection of this. Three days after this meeting, Mr Crowley wrote to the IRTC about the directive. He said yesterday the letter wasn't seeking a directive, it was expressing surprise that one hadn't been given.

Mr Hanratty questioned how this could be, when no one had ever asked for a directive. He said the letter contained "untruths" and was deeply misleading for the IRTC.

The witness said he would have reconsidered the letter if he had known the minister had by then reached agreement with RTE on a higher charge.

Mr Justice Flood said Mr Crowley, by signing the letter, had given his "imprimatur" as an experienced accountant and distinguished member of the commercial community to the request for a directive. "Weren't you duty-bound to inquire into the correctness of the substance of it?"

Mr Crowley said he made all the necessary inquiries. He carried out his duties as chairman to the highest possible standards. This had already been ruled upon in the High Court.