A former director of Century Radio apologised at the Flood tribunal yesterday for concealing from the IRTC the fact that a shareholder in Century Communications Ltd was a son-in-law of Mr Charles Haughey. "In hindsight it was totally wrong of us to do so," Mr Oliver Barry said, adding that he was sorry and regretted it.
Mr Barry said it was the wish of Mr John Mulhern, a son-in-law of then Taoiseach Mr Charles Haughey, to remain private when the application was made in 1988. "At the time, to have his name publicly associated with the proposal might not have helped our chances because he was the Taoiseach's son-in-law."
While concealing Mr Mulhern's involvement was wrong, it was "innocently wrong", he said. Mr Mulhern's holding was held on his behalf by himself and Mr James Stafford, another former Century director. Mr Stafford and Mr Barry invested £275,000 in the company and Mr Mulhern £300,000.
Mr Barry said Mr Mulhern became involved in the venture when he met him on a train to Cork on a date he could not recollect. He knew him socially, and they talked about the future of independent broadcasting. Mr Barry told him he and Gay Byrne were thinking of getting involved. Mr Mulhern said he was also interested.
Mr Patrick Hanratty SC, counsel for the tribunal, said elaborate arrangements were clearly made to conceal Mr Mulhern's involvement. The company's solicitors were not even told.
Mr Barry agreed.
Mr Barry was also questioned about his previous evidence to the tribunal that he gave the minister for communications, Mr Ray Burke, a political donation of £35,000 before the 1989 general election. He said Mr Burke asked him for £30,000 to help secure the second seat in his constituency. He was taken aback at the amount requested.
However, he decided to give him £35,000 in cash on behalf of Century Communications Ltd, as he felt it would be disadvantageous to the company's investment if Fianna Fail, which had legislated for independent broadcasting, was not returned to power. He assumed Mr Burke asked for the money in cash.
Mr Barry insisted he would not have paid out the "large sum" to Mr Burke without the approval of Mr Stafford and Mr Mulhern. The £35,000 donation, which was his idea, was part of his £275,000 investment in the company. Mr Stafford told the tribunal the first he knew of the payment to Mr Burke was in 1991, and Mr Mulhern said he was told about it in 1989, after it had been made.
Mr Barry said he did not recall discussing with Mr Burke his interest in establishing Century Radio before late 1988, by which time legislation had been introduced permitting independent radio and an application for a licence for the station had been made to the IRTC.