Lowrey ‘was under pressure from bidders’

JUST weeks before civil servants chose Esat Digifone as winner of the State’s second mobile phone licence competition, Michael Lowry was under pressure from bidders who were concerned “the competition was sewn up and the media favourite had the licence in the bag”.

Both media and bookmakers, the Moriarty Tribunal heard yesterday, had strongly tipped the Persona consortium, which included Sigma Wireless and Motorola, to secure the deal to run the country's second GSM network.

Anxious to know if the speculation had substance, Mr Lowry phoned Fintan Towey, a member of the GSM project team in his department.

The conversation took place in September 1995, the month before the Denis O'Brien-led Digifone consortium was announced winner.

He told the minister the evaluation process was not yet complete and suggested it might be to the minister's advantage not to have knowledge of how the evaluation was proceeding.

Mr Lowry gave him "the very clear impression he was under pressure in the sense that one of the consortia and he didn't mention any applicant by name had the view the competition was sewn up and that the media favourite had the licence in the bag".

Mr Towey added: "I can't say for certain whether or not I mentioned the top two or three applicants at that point to him but he seemed to be satisfied with that. I believe he said he would speak subsequently to Martin Brennan (head of the GSM project team)."

According to Mr Towey, the minister said he was under pressure to ensure a genuine evaluation process was underway and the result was not a foregone conclusion.

Questioned about the phone call from Mr Lowry in September 1995, Mr Towey told tribunal lawyer John Coughlan: "The impression that I had from him was that he was being subjected to the view that Motorola jobs would disappear and that because of this the Government would ensure the licence was issued to Persona. That was my interpretation of where he was coming from."

Witness agreed Mr Lowry made an intervention for the purpose of gaining information and had received it. He also agreed it was the first time he had direct contact with the minister other than formal contacts, which were not on a one-to-one basis.

Mr Coughlan asked if a rumour was circulating in the Department of Communications that Motorola or Persona had received an indication from some member of the previous government they would be "all right" for the licence. Said Mr Towey: "I heard something to that effect, yes."

To his knowledge this was the first instance where the minister had expressed an interest in the licence competition and he would have reported the matter to Mr Brennan, who chaired the GSM project team.

Mr Towey said he wasn't unduly surprised or concerned about the minister's approach. Officials were always clear in the department it was a likelihood the minister would come into contact with people who had a direct interest in what was happening in the competition.

To his knowledge, no external influence was brought to bear on the GSM evaluation process that could have an effect on ensuring any particular result.

Mr Towey said he was at the heart of the decision-making process, which was carried out in good faith and fulfilled the established criteria.