Financier says money was not discussed at office meeting

Financier Mr Dermot Desmond told the tribunal that money was never discussed at a meeting in his office with former Government…

Financier Mr Dermot Desmond told the tribunal that money was never discussed at a meeting in his office with former Government press secretary, Mr P.J. Mara, and two directors of Century Radio in 1990.

The meeting, believed to be in May 1990, was attended by Mr Desmond, Mr Mara, Mr Oliver Barry and Mr James Stafford.

Mr Desmond disagreed with Mr Stafford's evidence to the tribunal. Mr Stafford had stated that at the meeting Mr Desmond said Century owed Mr Mara £30,000. Mr Stafford also alleged that Mr Barry told him Mr Mara and Mr Ray Burke were demanding money in return for radio licences.

Yesterday, Mr Desmond said: "I am very clear that I never spoke to Mr Barry or Mr Stafford about Mr Mara owing me money."

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Asked why the meeting was arranged in his office, Mr Desmond replied: "I was too busy to go to their office."

He said Mr Mara told him he was in discussions about joining Century, giving it PR consultancy services. Mr Mara said Mr Stafford was the stumbling block.

"I said to him that the best thing to do was to get them in here together and either fill it or kill it and just forget about it and that's why the meeting was called," he said.

"My recollection of the meeting was that I said can we resolve the impasse between Century and P.J. and Oliver Barry said in very clear terms he didn't see any way of doing business with P.J. and I said well if that's the case there's no point in carrying on the discussion any further and the meeting was finished before the coffee was served," Mr Desmond said.

Asked how long the meeting took, Mr Desmond said: "It was about a minute and a half." It had broken up with an air of anger.

Mr Mara had told him he wanted a signing-on fee, stock options, and a salary which would be twice what he was getting at that time.

"At that stage P.J.'s concern was to build a secure future for himself and his family after politics," Mr Desmond stated.

He confirmed he had lent Mr Mara money. Asked how Mr Stafford knew Mr Mara owed Mr Desmond money, Mr Desmond said he did not find out from him.

Mr Pat Hanratty SC, for the tribunal, said Mr Stafford was correct in that Mr Mara owed Mr Desmond money, although the figure mentioned was £100,000 while Mr Mara's counsel said it was £46,000. Mr Desmond said he made payments to Mr Mara between 1986 and 1989. The amount was never repaid and no repayment was sought.

Mr Hanratty said that when they had the meeting Century was in serious financial difficulties. "I suggest to you that the proposition that there was any question whatsoever of taking on an employee or a consultant in those circumstances is totally implausible," Mr Hanratty said.

Mr Desmond replied: "That's something that should be taken up with Mr Barry and Mr Stafford. That's my understanding from my discussions with Mr Mara."