Lowry tells Moriarty route of payment was 'unusual'

Seeking political donations against the background of "rumour and innuendo" surrounding the awarding of the State's second mobile…

Seeking political donations against the background of "rumour and innuendo" surrounding the awarding of the State's second mobile phone license would have been "wrong" and "unwise", former Fine Gael minister Mr Michael Lowry told the Moriarty Tribunal today.

"People were running around to journalists with big baskets of sour grapes," Mr Lowry said in relation the award of the the licence to Esat Digifone.

Mr Lowry, who was Minister for Communications when the licence was awarded in 1995 added that he was puzzled by what Counsel for the tribunal, Mr Jerry Healy SC, described as "the incredible degree of secrecy" surrounding the payment of $50,000 from Telenor to Fine Gael via the late Mr David Austin.

Mr Arve Johansen, chairman of Telenor Invest A.S. and chief executive of Telenor Mobile Communication, who were partners to Esat Digifone made a payment of $50,000 at Mr Austin's request for "consultancy" work in Deccember 1995.

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Mr Michael Lowry (left) chats with Mr Denis O'Brien

Mr Lowry agreed the route the payment took from Telenor, via a Channel Islands account held by Mr David Austin, to Fine Gael almost 18 months later was "unusual".

"I know nothing about the donation itself. I know nothing about the way it was routed and I know nothing about the documentation", he said.

He said that media reports had informed him of the controversy and that he was reluctant to adjudicate on the payment.

Earlier, Mr Lowry said the awarding of the State’s second mobile phone licence was conducted in a "fair and impartial" manner.

In a written response to the tribunal, Mr Lowry said independent consultants had been engaged to assess submissions for the licence and that he did not interfere in the decision to make the award to Esat Digifone.

In the letter, Mr Lowry stated that he had never sought political contributions from the then Chairman of Esat Mr Denis O’Brien. He also said that Mr O’Brien had never sought political favours.

He said he regarded Mr O’Brien as a "social acquaintance" but would not decribe him as a close personal friend.

Mr Lowry, was present in the witness box when his response to a letter sent in May this year by Mr Sean Davis, solicitor for the tribunal, was read out.

In relation to a payment of £147,000 Mr Lowry received from then Fine Gael fundraiser, the late Mr David Austin, the former Minister said he had not mentioned the payment to the tribunal during evidence previously given because he did not think it was relevant.

He said the payment was a loan in respect of a house in Blackrock, Co Dublin he had bought and intended to renovate. A hand-written document drafted by Mr Austin and signed by both men was produced at the tribunal describing the £147,000 payment as a loan and indicating a schedule of repayment and rate of interest.

Mr Lowry said he repaid the money after the property was disposed of in accordance with the terms of the document.

In other evidence, Mr Lowry said he had been introduced to Mr Aidan Phelan, a former business associate of Mr Denis O’Brien, by a British property consultant after Mr Lowry had paid a 10 per cent deposit on development land in Mansfield in 1998.

He said the pair became involved in a joint venture to purchase land in Cheshire but that after financing he hoped to arrange fell through, Mr Phelan continued to pursue the deal. Mr Lowry said that he was no longer a beneficiary of the deal.

Mr Lowry's evidence to the tribunal continues tomorrow.