No evidence of wrongdoing by Lowry, tribunal told

ENTREPRENEUR Denis O’Brien, who runs a business empire from his Algarve base in Portugal, is due to return to Dublin Castle next Tuesday to give further evidence to the Moriarty Tribunal about the controversial award of the GSM2 licence to Esat Digifone.

Mr O'Brien headed the Irish/Norwegian consortium that won the licence competition from five other bidders in 1995 and later successfully negotiated the licence terms. As Minister for Communications, Michael Lowry awarded the licence on May 16, 1996.

On his seventh and final day in the witness box, former Digifone solicitor Owen O'Connell told the tribunal yesterday he was in no position to tender evidence of any improper interference or wrongdoing by Mr Lowry during the GSM2 licence process.

Mr O'Connell, a managing partner of William Fry Solicitors, said the first and only time he met Mr Lowry during the period of the licence process was the day Digifone was awarded the GSM2 licence.

"I was one of a group of people in an upstairs room in the department when the licence was signed and handed over, as was the side letter of the same date," he told Rossa Fanning BL, for Mr Lowry.

Mr O'Connell said he was also in the department room a couple of hours afterwards when a press conference was held to announce the GSM2 outcome. Prior to that all of his dealings with the minister were indirect through various civil servants.

Earlier he described how businessman Denis O'Brien would have liked to have control of Esat Digifone but in reality he had not.

Replying to Richard Nesbitt SC, for the department, Mr O'Connell agreed control was always a key issue for members of a consortium involved in a project.

While Mr O'Brien was very anxious to have as much control of Digifone as he could, Telenor of Norway were always absolutely adamant that equality was the bottom line for them. Telenor felt it would be better if they had majority control.

"As a matter of personal belief I think that Telenor expected to get the majority control because it's the way of the world that the party with more money usually ends up with control and may have been taken aback when they didn't," said Mr O'Connell.

Mr O'Connell said he understood Mr O'Brien's approach had taken Telenor by surprise. The tribunal adjourned until next Tuesday.