Subcommittee refuses to hear legal submissions on behalf of O'Brien

The inquiry subcommittee refused legal submissions on behalf of Mr Denis O'Brien and said the former Esat chairman would have…

The inquiry subcommittee refused legal submissions on behalf of Mr Denis O'Brien and said the former Esat chairman would have to address the issues raised in person.

Mr O'Brien's barrister was left addressing an empty table after inquiry chairman, Mr Sean Doherty TD, adjourned the hearing and the subcommittee left the room.

Mr Paul Gardiner SC had objected to questions put to Mr Leslie Buckley, a former director of Esat and previously a consultant to CI╔.

Mr Gardiner said the questions, about details Mr O'Brien gave to the stock exchange regarding Esat's plans to build a phone network around CI╔'s railway lines, were based on an inaccurate reading of Mr O'Brien's evidence.

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Mr O'Brien told the inquiry last week there were three stages to the deal with CI╔: a letter of intent, heads of agreement, and final contract.

But he said some of those terms may have "moved around" and he would have to check if the letter of intent referred to in his prospectus to the stock exchange prior to floating on the Nasdaq index was actually a heads of agreement.

CI╔ company solicitor, Mr Michael Carroll, said subsequently he was not aware of any letter of intent and there would be serious implications if it was included in Esat's prospectus and the document did not exist.

When the inquiry opened yesterday, Mr Doherty said he had received a clarification from Mr O'Brien's solicitors stating that the letter of intent referred to in the prospectus was in fact the heads of agreement signed by Esat and CI╔ in June 1997.

Mr Doherty said the subcommittee would question Mr O'Brien about the matter in due course.

When Mr Noel O'Flynn TD tried to raise it with Mr Buckley, however, Mr Gardiner intervened and asked that his client's clarification be taken into account.

Mr Doherty replied that the clarification was not evidence, and until Mr O'Brien appeared again, it was appropriate to put questions based on his evidence so far.

Mr Gardiner objected, stressing that Mr O'Brien had said he needed to check his facts but Mr Doherty cited the part of Mr O'Brien's evidence where he clearly stated there were three stages to the deal.

Mr Gardiner continued to object but Mr Doherty ruled the inquiry adjourned to this morning.