Mobile bidder tells of Desmond ‘meeting’

FINANCIER Dermot Desmond told one of the failed bidders for the State’s second mobile phone licence he knew who Denis O’Brien would use to get to Michael Lowry, the Moriarty Tribunal was told yesterday.

Tony Boyle, who was at the time was chairman of Persona Digital Telephony Ltd, said Mr Desmond made the remark during a conversation at the Aintree Grand National in April, 1995. He said they were both there as guests of financier and racehorse owner JP McManus.

The topic of the second GSM licence competition came up and Mr Boyle explained he had put a consortium together to bid for the licence. According to Mr Boyle, Mr Desmond said he had been approached by Mr O’Brien to act as chairman of his consortium but had declined.

When Mr Desmond asked about the process involved and who the decision-maker was, he said it would be a public competition run by Mr Lowry’s department. He said the department and Mr Lowry would make the decision.

Mr Desmond then said he knew exactly who Mr O’Brien would use to get to Mr Lowry, Mr Boyle said.

In October 1995, Mr Lowry, then Minister for Communications, recommended to the Fine Gael-led Government that Mr O’Brien’s Esat Digifone consortium get the GSM licence.

Mr Desmond’s investment company IIU Nominees had acquired a 20% stake just weeks before the successful bid was announced.

In a written submission to the tribunal, Mr Desmond confirmed he attended the Aintree meeting and was a guest of Mr McManus. He was acquainted with Mr Boyle and had met him on a number of occasions. However, he said he had absolutely no recollection of Mr Boyle in the guest box or even at the races.

Even if Mr Boyle was present, Mr Desmond said he was absolutely satisfied he didn’t speak with him. He said the conversation alleged by Mr Boyle never took place at Aintree or anywhere else.

Mr Desmond said he was never asked by Mr O’Brien to be chairman or president of any GSM bid consortium.

He also rejected saying to Mr Boyle he knew exactly who Mr O’Brien would use to get to Mr Lowry.

The tribunal was also told a special advisor to former Taoiseach John Bruton arranged meetings between Denis O’Brien and Fine Gael leader Enda Kenny.

Mr Kenny was Minister for Trade and Tourism at the time.