Tribunal to hear more evidence on Esat inquiry

The Moriarty Tribunal, which resumes hearings today, is to hear further evidence concerning the confidential 1997 inquiries conducted by Esat Telecom and Esat Digifone into comments made by Mr Denis O'Brien.

The inquiries also looked at the issue of a $50,000 political contribution to Fine Gael by the Esat Digifone shareholder, Telenor, later reimbursed by Digifone.

Between now and the end of the month it is expected further directors of the two Esat companies may be called, including Mr Dermot Desmond, a former director of Esat Telecom, and former Telenor representatives on the Digifone board.

Evidence is also expected from Mr Aidan Phelan, an accountant and financial adviser to Mr O'Brien. Mr Phelan acted as a consultant to the initial public offering (IPO) of shares in Esat Telecom in the US. The IPO formed the backdrop to the 1997 inquiries.

Mr O'Brien, in a comment to the former Digifone chief executive, Mr Barry Maloney in 1996, indicated he had made a financial payment to the former Fine Gael minister, Mr Michael Lowry. Mr Lowry oversaw the competition for the second mobile phone licence in 1996, which was won by Digifone.

To date evidence has been heard from Mr O'Brien, Mr Maloney, and a number of Digifone directors. On Friday the tribunal heard evidence from Mr Owen O'Connell, managing partner with William Fry solicitors, who gave advice to Esat Telecom in 1997.

The tribunal has discovered three transactions not discovered by the 1997 inquiries. These are; a 1996 transfer of £407,000 from an account in Woodchester Bank in Dublin to an Isle of Man account in the name of Mr Phelan; the transfer onward of £150,000 to a Jersey account belonging the late Mr David Austin; and the transfer of £147,000 of this money to an Isle of Man account belonging to Mr Lowry.

Mr Austin was a senior executive with the Smurfit organisation and a supporter of Fine Gael. The $50,000 contribution to Fine Gael occurred after an approach in October 1996 by him to Mr O'Brien, who subsequently raised the matter with Telenor.

Mr O'Brien said the transfer from the Isle of Man account in Mr Phelan's name was to buy a house in Spain from Mr Austin for the use of Mr O'Brien's parents. Mr Lowry has indicated his evidence will be that the £147,000 transferred to his account was a loan from Mr Austin which he intended using to renovate a house he purchased in Blackrock, Co Dublin.

Following the public disclosure in late 1996 that Mr Ben Dunne had made payments towards the renovation of Mr Lowry's Tipperary home, Mr Lowry resigned. He decided not to go ahead with the renovation of his Dublin home and sold it to Cedar Building Co Ltd.

The money lodged in Mr Lowry's Isle of Man account was sent back to Mr Austin on February 7th, 1997, the date the McCracken (Dunnes Payments) Tribunal was established.