Century Radio was involved in plans to set up a Dublin radio station but did not disclose this to the Independent Radio and Television Commission when applying for a national radio licence, the Flood tribunal has heard.
The directors of Dublin One Ltd signed an agreement with the directors of Century Radio giving them control over the company. Dublin One never became a radio station.
When asked by Mr Justice Flood, Mr James Stafford, former director of Century, said Century was "a ghost that could get clothed any time" and become involved in the running of the local station.
"It was a fall-back position," Mr Stafford added, in the event Century was not awarded the national licence.
Mr Stafford denied misleading the IRTC, because Century Radio did not own the company. He added that while the IRTC was interested to know who controlled Century Radio, it was not as interested to know this in the case of a local radio station.
"I think they were interested in that but I don't think it was as sensitive an issue," he said. Counsel for the tribunal, Mr Pat Hanratty SC, asked if the licence would have been denied to Century Radio if the IRTC had been informed of its involvement in Dublin One Ltd. "No, I don't think I'd accept that," Mr Stafford replied.
According to a document signed by Mr Paschal Taggart and Mr Kevin Heffernan, the directors of Dublin One Ltd, Century Radio had control over the appointment of the majority of directors and the appointment of the chairman. It also had control over most of the company shares.
The tribunal heard the Dublin radio station did not proceed because Mr Taggart was unhappy with the lack of investment from Century. When Dublin One Ltd was dissolved, Mr Taggart sent Mr Oliver Barry, one of the Century co-founders, a bill of over £56,000 for outstanding expenses.
Mr Stafford said the bill was absurd and he had agreed with Mr Barry that it should not be paid.