Lowry queried Desmond's finances

A FEW days before Esat Digifone got the second mobile phone licence, Michael Lowry sought information on Dermot Desmond’s finances, the Moriarty Tribunal heard yesterday.

On May 13, 1995, three days before the licence was handed over, businessman Denis O’Brien met Mr Lowry and civil servant John Loughrey. The then Communications Minister requested information on the available finance in Mr Desmond’s International Investment and Underwriting company.

Mr Lowry was also anxious that when the licence was issued, Mr Desmond’s stake would be reduced to 20%. Mr O’ Brien’s holding company and Norwegian telecoms group Telenor each held 40% when they applied for the licence, with 20% set aside for institutional investors. The tribunal is probing the circumstances of Mr Desmond’s involvement. No record of this meeting is on the files of the Department of Transport, Energy and Communications. Mr O’ Brien relayed the information to Esat Digifone’s solicitor Owen O’Connell, who passed it on to the tribunal.

No record was found of other key meetings during these crucial days when department officials met with Esat and other consortium representatives to probe vital questions on how the new GSM service would be financed.

According to records given to the tribunal by Mr O’Connell, Mr Lowry wanted to deflect attention away from the identity of the successful licence holders at the public announcement.

The tribunal also learned that no department note was taken of the press conference held to formally launch the licence. It appeared the first formal notification the department had of IIU’s involvement in Esat Digifone was in mid-April 1995, tribunal counsel John Coughlan SC said yesterday.

A letter with similar information was sent in late September 1995. It was returned immediately to Mr O’Brien by a department official as it arrived after the licence application date.

Mr Desmond and his investment company are both refusing to give a waiver which would allow the tribunal to examine their finances. Pearse Farrell of Farrell Grant Sparks, who are IIU auditors and advisers, told the tribunal Mr Desmond was worth £77m but did not mention any liabilities he might have. The tribunal had asked for information about IIU s financial standing in relation to the GSM bid.

Mr Coughlan said the tribunal anticipated it would need a waiver of confidentiality, but both IIU and Mr Desmond declined to give it. He added they would pursue the matter with Mr Farrell during public sittings.