Denis O'Brien's Statement

This was issued last night on behalf of Mr Denis O'Brien:

This was issued last night on behalf of Mr Denis O'Brien:

In response to erroneous articles and reports in The Sunday Tribune, The Irish Times and RTE over the last 24 hours, Mr Denis O'Brien categorically denies making or arranging a payment to the Fine Gael Party in late 1995/early 1996 of IR£50,000, US$50,000 or any similar amount. Mr O'Brien is considering legal action against the parties named above. The facts of the matter are set out below.

In December 1995, the late Mr David Austin (sic) approached Mr Denis O'Brien in relation to a Fine Gael fundraising event to be held in New York City, at which An Taoiseach was to be in attendance. Mr O'Brien was asked whether he would attend the event, but he declined. Instead, he put Mr Austin in contact with Telenor, who had just entered the Irish market and wished to develop political contacts independently of Esat.

Mr O'Brien understands that Telenor subsequently made a US$50,000 donation to the Fine Gael Party via Mr Austin (who was, at the time, living in Jersey). Telenor subsequently sought reimbursement for the donation from Esat Digifone. The reimbursement was initially refused, but after some months of discussion it was finally paid to Telenor in or about April 1996. Two years later Telenor sent a cheque for IR£33,000 to Esat Digifone, stating that it was a refund from the Fine Gael Party of the earlier payment of US$50,000. Mr O'Brien believed that the cheque was returned to Telenor by Esat Digifone with the statement that if, as Esat Digifone had been assured by Telenor, the original payment was appropriate, it should be returned to Fine Gael.

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Mr O'Brien has no knowledge of what subsequently occurred in relation to the cheque.

Mr O'Brien wished to state, as he has done on many previous occasions, that his behaviour in regard to Esat Digifone's GSM licence was at all times entirely proper. The licence competition was run by independent experts from overseas. Esat Digifone made a massive investment in preparing its bid and business plan and in securing the resources necessary for a speedy and effective rollout. The investment was successful, as was the subsequent launch and development of the business. The licence process and award have been scrutinised on a number of occasions, by civil servants within the Department responsible, by successive Ministers and by the European Commission; nothing untoward was found, or exists. The suggestions made yesterday and today that the payment was related to Denis O'Brien or to Esat Telecom in any way, it totally wrong and extremely mischievous.

At the time in question, December 1995/January 1996, Esat Telecom did not have a funding difficulty and would have been fully capable of making any political donation it wished on its own account.