Court clears way for legal action over awarding of mobile license

Two multimillion euro legal actions over the awarding of the State's second mobile phone license to Esat Digifone in 1995 will now go ahead.

The Supreme Court earlier cleared the way for the challenges against the State, Esat Digifone and its former chairman Denis O’Brien, which are being brought by the two unsuccessful bidders - Comcast International Holdings Incorporated and Persona Digital Telephony Ltd.

Comcast and Persona Digital Telephony have previously sought millions in damages alleging fraud, conspiracy, deceit and corruption.

However, the State secured High Court orders in 2007 stopping the challenges on grounds of inexcusable delay.

The Supreme Court has now overturned that decision.

Tipperary North Independent TD, Michael Lowry welcomed the Supreme Court decision.

Mr Lowry said: "I have always advocated that a Court of Law with its established rules and procedures is the proper forum to critically probe the process.

"Shortly after the licence was granted and the losing consortia started a campaign to undermine the process, I as then Minister invited and encouraged the losing bidders to seek a judicial review of the process. They declined that request.

The former FG TD said that he hoped the consortia involved will now proceed with their legal challenge.

Mr Lowry said: "I am happy that the losing consortia’s court challenge will be governed by strict rules of evidence where facts must be established, where the sworn evidence of those who know the facts such as more than 17 civil servants and all others involved in the process will have to be accurately adjudicated on to the exclusion of hearsay and opinion.

"This claim is without merit or substance and should be vigorously defended by the State."