The Moriarty Tribunal has begun investigating new information concerning a possible payment from Denis O'Brien to Michael Lowry. This afternoon, the Tribunal outlined a conversation in 1996 between Mr O'Brien and the then Chief Executive of Esat Digifone in which Mr O'Brien is alleged to have said that he had made two payments of £100,000 each to the former Minister for Transport Energy and Communications and an unnamed person. Both Mr Lowry and Mr O'Brien have denied that such a payment ever took place.
According to Denis O'Brien, it started in 1996 with a run in Wicklow with Chief Executive Barry Maloney one Sunday morning. Friends for 20 years, they spoofed a lot, he said, talked about sport, women, money-making ventures, fantasy and reality mixed. He wanted Barry Maloney to get the finger out and make bonus payments that had been promised to people, including PJ Mara, and he boasted that he had already paid out £200,000.
However, Barry Maloney remembered it differently and his concerns prompted him to bring the matter to the attention of the Esat Telecom board a year later, when a prospectus was being prepared for the offering of public shares. He says that the conversation took place in an office and Denis O'Brien told him that he had paid Michael Lowry and another person £100,000 each.
Denis O'Brien said that he never made such a payment and he never said it. He admitted however that he had considered giving money to Mr Lowry. He was in public disgrace and his company was in trouble. All this became of major concern to the board of Esat Telecom.
The Tribunal has received solicitors memos detailing countless investigations, questioning sessions and fraught meetings. Who was to be believed, Denis O'Brien or Barry Maloney? One memo said this could have serious effects for this Tribunal, the press, politics and the share values of the company. However, in the end the board believed Denis O'Brien.
Their decision appears to have been largely based on an examination of certain bank accounts belonging to Mr O'Brien. They showed no payment to Michael Lowry. The board asked Mr O'Brien's accountant, Aidan Phelan, were there any other significant accounts and he replied "no".
However, Tribunal lawyers pointed out today that they had information that Aidan Phelan appeared to have been involved in the transfer of £150,000 from a Denis O'Brien account to David Austin. That transaction is connected to a subsequent payment from Mr Austin to Michael Lowry. It appears that the Board of Telecom knew nothing of this.
Mr Justice Moriarty stressed today that it would be wrong to draw any conclusions at this stage. Denis O'Brien is due to resume his evidence tomorrow.
This evening Michael Lowry issued a statement denying allegations that he received £100,000 payment from Denis O'Brien as totally false and untrue.
