FORMER MINISTER for transport, energy and communications Michael Lowry never expressed any preference about the awarding of the State’s second mobile phone licence in 1996, the department’s retired secretary general said yesterday.
John Loughery told the Moriarty tribunal Mr Lowry always acted in a “correct and honourable way”.
The tribunal is investigating possible financial links between businessman Denis O’Brien and Mr Lowry. It is currently re-examining some witnesses about the awarding of the mobile phone licence to Esat Digifone in May 1996, having already made preliminary findings.
When Esat entered a competition for the licence in 1995, it was to be 40 per cent owned by Denis O’Brien’s Communicorp; 40 per cent owned by Norwegian company Telenor; and 20 per cent by a consortium of AIB, Bank of Ireland, Standard Life and Advent International.
However, this was changed by the bidders in April 1996, with Dermot Desmond’s IIU Ltd replacing the four financial institutions. The department sought and was given legal advice on the matter from Richard Nesbitt SC, but the State only recently waived privilege on the advice.
Counsel for the tribunal, Jacqueline O’Brien SC, asked Mr Loughery about a note of a phone call made on May 7th, 1996, between two civil servants which recorded the minister’s “strong preference” for a 40:40:20 division of the licence. The note also said “will take Esat Holdings subject to no substantive difference”.
Mr Loughery said the minister would not have expressed such a preference.
“He never, ever interfered to express a preference in this whole process from start to finish,” he said. “He always acted in a correct and honourable way . . .”
Mr Loughery said the use of the word “minister” in the civil servant’s note could only be explained by the mentality of the middle civil servant, who did not feel able to write the word “I” and always attributed everything to the minister. He insisted the final decision to award the licence to Esat Digiphone was recommended by the department.
“It was my judgment call and not the minister’s,” he said.
He also said that before the entry of Mr Desmond into the licence consortium, Mr O’Brien had assembled a “dream team to impress the natives”, but in reality “there was nothing behind it”.
Ms O’Brien suggested a statement made by Mr Lowry in the Dáil on the licence on April 30th, in which he referred to Mr Desmond, meant the matter was already a done deal.
Mr Loughery said the suggestion was a “far-fetched thesis”. The minister had been thinking on his feet, which was quite impressive. “Fair play to Mr Lowry,” he said.
Mr Loughery also said since the tribunal reopened it had been focusing on Mr Nesbitt’s legal advice, but what was relevant was the then attorney general’s letter to the department, which gave “crystal clear advice” about accepting the Esat deal.
“The attorney general already cleared it legally without a quibble . . . Were we going to second guess him? No we weren’t,” he said.
