Chairman tells of Desmond ‘complaints’
The chairman's disclosure came during a 10-minute row with lawyers representing the three parties that held shares in Esat Digifone when it won the country's second mobile telephone licence seven years ago.
Lawyers for Mr Desmond, Denis O'Brien's Communicorp Group and Telenor of Norway, accused the tribunal of attacking part of the process under which the licence was awarded rather than inquiring whether former Communications Minister Michael Lowry received payments.
Eoghan Fitzsimons SC, for Telenor, alleged the same case would be made against the State in the High Court by Persona, the beaten consortium, as was being made by tribunal counsel. Instantly, the chairman hit back: "It's a most regrettable observation from someone of your seniority."
Mr Fitzsimons retorted: "Objectively, what we have witnessed here and when I say we I am referring to experienced counsel for all parties is an attack on aspects of the process."
The object of the lines of questioning by the tribunal legal team appeared to be an attempt to show up alleged defects in the process, he added. Civil servants had been attacked most unfairly in some instances in relation to the manner in which they had conducted their duties, said Mr Fitzsimons.
After Eoin McGonigal SC, for Mr O Brien, said he fully supported Mr Fitzsimons argument, the chairman declared he would not be drawn into a row that served no useful purpose.
He considered these concerted applications were exceedingly unhelpful to the process.
Defending the detailed inquiry into the licence award, Mr Justice Moriarty said he was satisfied the format he had decided was appropriate and described the assertions made by Mr Fitzsimons as regrettable, unfounded and utterly incorrect.
Bill Shipsey SC, for Mr Desmond/IIU Company, said he rejected and resented any suggestion of a concerted effort. He was unaware of what Mr Fitzsimons was going to say but said he agreed with his comments.
After Mr Fitzsimons asked him to withdraw the concerted claim as he had no consultation with any lawyer before making his comment, the chairman said he utterly accepted his assurance.
Earlier, former secretary general John Loughrey said he didn't find it particularly shocking there was trading in the licence before it was awarded.
When Mr Desmond was obliged to give up 5% of his original 25% stake to allow the licence deal go through in May 1996, his Digifone partners had to pay him. The Desmond deal put a £55 million market value on a State asset for which the consortium paid the State £15 million, according to tribunal lawyer John Coughlan SC.
The tribunal, which observed a minute's silence as a mark of respect to late Chief Justice Thomas F O Higgins, resumes today.
