O'Brien denies making payment to Fine Gael

The multi-millionaire businessman, Denis O'Brien, and the Norwegian telecommunications company, Telenor, have each given conflicting accounts in growing controversy over a $50,000 donation to the Fine Gael party while it was in government. Fine Gael said this evening that it tried to return the money to Telenor but the cheque was not cashed and the party has now decided to make another attempt to return it by means of a bank draft.

The donation at the centre of this controversy relates to a fund raising event in New York on behalf of the Fine Gael party prior to the 1997 General Election. This evening's Fine Gael statement states that Fine Gael received an indirect contribution from a Mr David Austin, a long time supporter of the party who was resident in Jersey. Following contacts between Fine Gael and David Austin they understood it to have been a personal contribution from Mr Austin to Fine Gael's fund raising efforts.

The following year Fine Gael was contacted by Telenor, the Norwegian telecommunications company, because the company felt that it could be drawn into the Moriarty Tribunal and at a later meeting in February 1998 disclosed to Fine Gael that the true donor was the ESAT organisation of which Telenor was 40% partners.

Fine Gael subsequently tried to return the money, stating that had they known of its origin they would not have accepted a contribution of unclear origin. Having tried to refund the money they discovered later that the cheque was un-cashed and eventually, they say, returned to them by ESAT Digifone.

This evening Denis O'Brien categorically denied making or arranging a payment of $50,000 or £50,000 or any similar amount to Fine Gael in late 1995/early 1996. He said that he was approached about the fundraiser in New York but declined to attend. He said that instead he put David Austin in touch with Telenor.

Telenor today said to RTÉ that they made a payment of $50,000 to Fine Gael but on behalf of ESAT Digifone. O'Brien, in his statement, said that Telenor sought reimbursement for the payment. ESAT initially refused but did so around April 1996.

Two years later Telenor sent ESAT a cheque for the sum involved saying that it was a refund from Fine Gael. O'Brien understood that the cheque was returned to Telenor and he had no knowledge of what happened to it afterwards.

This evening Michael Lowry issued a statement saying that he has no knowledge of the contribution, no involvement with the fundraiser in New York and that he never on any occasion requested funds from Telenor or ESAT Digifone. Michael Noonan said that he did not know until now about this donation and he is seeking to have the donation returned.