The tribunal is going to investigate a letter sent to the Department by Mr Owen O'Connell, a senior solicitor with William Fry solicitors acting for Esat Digifone.
The April 1996 letter informed a civil servant in the Department of Transport, Energy and Communications, Ms Regina Finn, that the 25 per cent of Digifone then held by IIU Ltd, related to the investor shareholding indicated in Digifone's winning bid. It was understood the IIU shareholding would be sold on, the letter said.
However, Mr Coughlan said, the letter did not reflect what had occurred in relation to the IIU shareholding. On September 29th, 1995, IIU had signed a deal whereby it got the right to subscribe for the 25 per cent shareholding in return for underwriting the 25 per cent to be held by IIU and the 37.5 per cent held by Mr Denis O'Brien's Communicorp.
Mr Coughlan said, a side letter signed by Mr O'Brien and by Mr Michael Walsh of IIU, assigned the rights and obligations of the shares held by IIU to Bottin International Investment Ltd, a company which holds assets for Mr Dermot Desmond.
Mr Lowry said during that debate that: "The Communicorp funding requirement was underwritten by a party acceptable to my department." Mr Lowry said this was the position at the time of the licence award in October 25th, 1995.
However, the draft speech prepared by his officials did not contain this reference to Communicorp and the tribunal is going to investigate how Mr Lowry came to know this.
It will also investigate if the information was known to the Department at the time and if it was, whether it was acceptable to Mr Lowry and the Department, Mr Coughlan said.
The licence awarded to Esat Digifone was given a value of £52 million in internal IIU Ltd documentation drafted in early 1996, the tribunal heard.
The reading of Mr Coughlan's opening statement continues today.
