Mr Denis O'Brien's main company was "stretched for cash" around the time it was competing for the State's second mobile phone licence, the Moriarty tribunal said yesterday, writes Colm Keena.
The tribunal, which has begun to outline the results of its year-long private inquiry into the licence award, also said that Mr O'Brien did not settle on a partner for his bid until just weeks before the original June 1995 deadline.
In the event his consortium, Esat Digifone, won the 1995 competition and the shareholders made hundreds of millions of euros.
Tribunal counsel Mr John Coughlan SC has begun reading a lengthy opening statement, the delivery of which continues today. Mr Coughlan said Mr Tony Boyle, a representative of Persona, which made an unsuccessful bid for the licence, has told the tribunal of comments he said were made to him by Mr Dermot Desmond during a 1995 meeting in Aintree racecourse. Mr Desmond has denied the conversation ever took place.
Mr Boyle said that during a conversation in the box of Mr J.P. McManus, Mr Desmond said he knew who Mr O'Brien would use to "get to" Mr Michael Lowry, the then Minister for Transport, Energy and Communications.
Mr Boyle was a leading figure involved in the failed Persona bid. After Esat was announced as the winner, Persona complained about the decision to the European Commission. Persona has served notice on the Government that it may sue the State in relation to the licence competition. Mr Desmond said in this statement to the tribunal that he is surprised that Mr Boyle has never mentioned the alleged comment before.
Mr Coughlan gave details of political donations made by Mr O'Brien to Fine Gael during 1995. He said Mr O'Brien engaged consultant Mr Dan Egan to help him raise his profile with senior figures in Fine Gael.
Mr Egan told the tribunal he set up a meeting in Leinster House between Mr O'Brien and Fine Gael leader Mr Enda Kenny, then Minister for Tourism and Trade in the Rainbow Coalition.
The meeting took place on May 17th, 1995. On the same day, Mr O'Brien met Mr Richard Bruton, then Minister for Enterprise, Trade and Employment, Mr Egan told the tribunal.
Mr John Callaghan, a director of Esat Telecom, said Mr O'Brien had looked at a number of potential partners for his licence bid by April 1995. As far as he was aware, it was in late April 1995 when representatives of Telenor came to Dublin and had initial discussions with Mr O'Brien. He said matters developed quickly thereafter.
Mr O'Brien told RTÉ News last night he hoped the tribunal would "put to bed" allegations over the awarding of the licence.
"The licence was won fair and square and we will see over the next few days in the tribunal exactly what happened".
Ttibunal reports, page 6