Mr Denis O'Brien yesterday denied suggestions that there was "no reality" to his purchase from Mr David Austin of a house in Spain for his parents in 1996 for £150,000.
Mr O'Brien said he had intended the house as a holiday home for his parents although he acknowledged that they had never stayed there and that he did not receive title to the property until at least 1998.
Replying to Mr John Coughlan SC, for the tribunal, Mr O'Brien agreed that he had bought the property at about the same time as he was buying property in Portugal, where he now lives and where his parents now have a holiday home.
Mr O'Brien said he initially bought a site at Quinta do Lago and later bought the whole resort. But he said Mr Coughlan was "completely and categorically wrong" in suggesting that there was "no reality" to his explanation that he bought the house in Spain for his parents.
Mr O'Brien said he was shown a deed for the property by Mr Austin, possibly over dinner in London in May 1996. They had agreed "informally" that Mr Austin would sell the property to him. He recalled subsequently making two payments, a deposit and a final amount.
Mr O'Brien said he knew there were problems getting Mr Austin's certificates of trust to effect the sale, but this had not been actively pursued because Mr Austin was gravely ill.
"I shook hands in May, and then I paid him the money, so I was very happy that I owned the property", he told Mr Coughlan.
Mr O'Brien said that there were "people for the IPO [the international share placement offer for Mr O'Brien's company] and people against the IPO". He felt that those against the IPO would use concern over performance payments to "derail the IPO". Asked who was attempting to derail the IPO, he said: ". . . it was Mr [Barry] Maloney."
He said he had agreed to sign a letter stating that no inappropriate payments had been made, and this was accepted by the board. The statement was designed to "protect the members of the board of Esat Digifone".
He added: "Barry [Maloney] admitted that no money had been paid. We agreed I would write a letter and that would be the end of it. I became a little suspicious when the word `intermediary' popped out."
