Bank chief says O'Brien knew about Lowry loan

A senior executive with British bank Investec has told the Moriarty Tribunal that he was informed in 1999 that former ESAT chairman Denis O'Brien was linked to a £420,000 loan paid out by Woodchester Bank.

Mr O'Brien has denied all links to the bank loan, which was given to a company of which former government minister Michael Lowry was a director.

Tony Moreland said today that he was told the loan was destined for Mr O'Brien, but that Mr O'Brien didn't want to be associated with it.

He said he was never told why Mr O'Brien wanted his involvement kept quiet.

Mr Moreland said that as soon as he found out that the loan went to Mr Lowry's company, Catclause, and not to Mr O'Brien, he became worried.

He viewed this as dangerous information, with the potential to seriously damage Investec's reputation.

Investec had just taken over Woodchester Bank at the time of the loan and yesterday, the tribunal heard that Investec executives ordered Woodchester to remove the loan from their books before the takeover could be completed.