One perspective of sloppy practices at the top

The evidence heard to date about dealings concerning Mr Denis O'Brien brings to mind those modern films where a certain event…

The evidence heard to date about dealings concerning Mr Denis O'Brien brings to mind those modern films where a certain event is seen from the perspective of a number of different characters.

In the script currently unfolding in Dublin Castle, the characters tend to have wild ly different experiences or understandings of the same events. For instance, in 1999 Woodchester Bank issued a loan for £420,000 which it believed was for Mr Aidan Phelan but which Mr Phelan insists he told the bank was for Mr Michael Lowry.

Mr Phelan, a close associate of Mr Denis O'Brien from 1987 to November 1999, is now giving evidence and his version of events is being disclosed.

Yesterday the focus was on an account Mr Phelan opened in July 1996 in his own name in the Isle of Man for the receipt of £407,000 belonging to Mr O'Brien. The money was soon dispersed to a number of people. All of this happened on Mr O'Brien's instructions, Mr Phelan said.

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Among those who received money was the late David Austin. He got £150,000. Mr Phelan said he believed the money was for a house in Spain Mr O'Brien was buying from Mr Austin.

Mr Phelan said he did not know that Mr Austin put the money in a dedicated account in Jersey, from which he later transferred the bulk of it to an offshore account belonging to Mr Lowry.

Mr Phelan closed the Isle of Man account in May 1997. In November 1997 Mr O'Brien's Esat Telecom was launching its shares in the US. A top-level inquiry was conducted into suggestions Mr O'Brien had paid money to Mr Lowry.

The suggestion was a threat to the launch, which was to raise in excess of £100 million, and if anything had gone wrong with the launch, Mr O'Brien's Esat Telecom and its interest in Esat Digifone were imperilled.

As part of the inquiry, Mr Phelan was asked if Mr O'Brien had any significant bank accounts other than ones the inquiry was investigating in Woodchester Bank. Mr Phelan said no.

Yesterday he said he "forgot" about the Isle of Man account at the time. This was even though he knew Mr Austin featured in another aspect of the 1997 Esat Telecom inquiry.

Mr Phelan will continue his evidence today. His lawyers have indicated he will tell the tribunal that by 1999 he was giving financial advice to Mr Lowry, who was in financial difficulty.

He will also say he negotiated the £420,000 sterling loan for Mr Lowry in December 1999.

The tribunal has already announced it has found evidence that in 1998 Mr Phelan withdrew £300,000 sterling he says he was owed from a London account of Mr O'Brien, which he used in a British property transaction involving Mr Lowry.

We have yet to hear from Mr Phelan as to why he, when he was an accountant and personal adviser to Mr O'Brien, got involved in dealings with Mr Lowry when the mere mention of a possible link between Mr Lowry and Mr O'Brien a year earlier had almost caused the melt down of Esat Telecom.

During 1998 and 1999 Esat Telecom still owned a significant percentage of Esat Digifone and any whiff of a financial connection between Mr O'Brien and Mr Lowry would have had a negative impact on the valuation of the company. At worst, Mr O'Brien stood to lose more than £200 million.

The evidence to date paints a picture of very sloppy practices at the top echelons of Irish business. And that's when looking at matters from the perspective of just one of the wide cast of characters involved.