Financier may be asked about loan to P.J. Mara

The financier, Mr Dermot Desmond, will appear at the Flood tribunal today and will be asked about a meeting with directors of…

The financier, Mr Dermot Desmond, will appear at the Flood tribunal today and will be asked about a meeting with directors of Century Radio and a former Government press secretary, Mr P.J. Mara, in 1990.

Mr Desmond is likely to be questioned about evidence given by Mr Jim Stafford, cofounder of Century Radio.

Mr Stafford said he attended a meeting in 1990 with Mr Desmond, Mr Mara, Mr Oliver Barry, the other co-founder, and Mr Laurence Crowley, chairman of the station.

Mr Stafford has alleged to the tribunal that Mr Desmond said at the meeting that Century owed Mr Mara £30,000. He stated that Mr Desmond told them he had lent Mr Mara £100,000 and was relying on the £30,000 as part of the repayment.

READ MORE

Mr Desmond and Mr Mara, in statements to the tribunal, flatly denied this, stating that the meeting was held to look at the possibility of Mr Mara acting as a consultant for Century Radio.

Last month at the tribunal, Mr John McMenamin SC, for Mr Mara, cross-examining Mr Stafford, said Mr Desmond lent Mr Mara £46,000, which he repaid in 1993.

Mr McMenamin said it had been proposed that Mr Mara be brought in as a consultant to Century and that he would be paid half an arranged sum, the £30,000, in advance.

Today Mr Desmond will give evidence.

Yesterday Mr Michael Grant, an assistant secretary in the Department of Communications during the 1980s, resumed his evidence about drawing up the Radio and Television Bill in 1988.

Ms Patricia Dillon SC, for the tribunal, referred to Section 16 of the Bill, which allowed the Minister (Mr Ray Burke at the time) to impose a charge on RTE for the use of a transmission facility by whoever was granted the national radio licence.

She asked if Mr Grant had made any enquiries in the Department since last week on how Section 16 had "crept into the Bill."

Mr Grant replied: "I've examined all the files and can find no paper trail. I would be reasonably happy that any further examination of the files would still result in there being no paper trail."

Ms Dillon drew attention to a complaint referred to in Department documentation about an unauthorised amendment to the Bill.

Mr Grant said it was a very grave error to tamper with the stamped copy of the Bill. "It should not have been done and I would assume it was done by someone who was not aware of the strict rules," he said.

Ms Dillon said they had not been able to identify what the amendment was.

Mr Grant said he could not conceive that whatever was done was a significant amendment regarding any change of policy. He said he had actually had to go to the lengths of introducing an amendment to insert a comma. A stamped copy of the Bill could not be changed unless there was a formal amendment.

"I would react quite angrily and would be quite horrified at a breach, and can only assume that however it was breached, it was breached in ignorance," Mr Grant stated.

Asked if such a breach could be an unusual occurrence, Mr Grant said he had never known such an occurrence in a situation where the Attorney General's office had been involved. The Department would have been very embarrassed.

Mr Grant will return to the witness box today when Mr Desmond has completed his evidence.