Four former CIE employees who now work for Modern Networks Ltd (MNL) have written to the Oireachtas Joint Committee on Public Enterprise and Transport investigating dealings between the companies, asking to be called to give evidence.

The four have sent a document to the committee which alleges that Iarnrod Eireann issued instructions for the laying of fibre optic cables for Esat Telecom along its rail network despite being told this would increase the cost of laying its own signalling system.

MNL was involved in the laying of both lines. The Oireachtas committee heard last week that the "mini-CTC" signalling system, which was originally expected to cost £14 million may now cost up to £40 million, and that MNL and CIE could end up in court over the issue.

Last week, the committee heard that the decision to lay the Esat cable along the network meant that cables needed for the signalling system had to be laid by hand, and that this was one major factor behind the cost overrun for the project.

Mr Brian Powell, Mr Bernard Kernan, Ms Mary Hand and Mr Pat Judge, who all now work for MNL but who formerly worked for CIE/Iarnrod Eireann, have written to the committee chairman, Mr Sean Doherty, "respectfully suggesting" that their attendance at the committee's hearings would "enhance" its investigation. They asked to be called at the earliest possible date.

They have also given the committee correspondence sent to CIE by them concerning being named in a PricewaterhouseCoopers report prepared for CIE. The report is critical of the contract drawn up between MNL and Iarnrod Eireann for the signalling project and mentions that the four now work for MNL.

The four have complained to CIE about the leaking of the report to the media and that it names them and "casts aspersions on each of us", but was prepared without any of them being consulted.

They make a number of points regarding the Esat project. They state an agreement between Esat and Iarnrod Eireann was concluded in early 1998.

"As part of its obligations under this licence agreement, Iarnrod Eireann undertook to install fibre optic cables for Esat Telecom over sections of the railway network and those sections overlapped with part of the planned route for the miniCTC," the four said. "Iarnrod Eireann subcontracted part of this Esat cable installation work to MNL, apparently without going through a tendering process," they add. This assertion is backed up by the PWC report, which also says the Esat project did not go out to tender.

"At the time of the finalisation of the mini-CTC contract (July 1997), the possibility of a future licence agreement with Esat Telecom was being mooted," the correspondence states.

Insofar as provision should have been made to manage the interaction between the two projects [the Esat and the miniCTC agreements], "this could only have been provided for in the agreement with Esat Tele com, which was the later agreement", it states.

"The completion of the Esat agreement has inevitably increased costs for the mini-CTC project because Esat cables were installed ahead of the mini-CTC cables along certain routes," it adds.

CIE "was under pressure to treat the needs of the Esat installation works in priority to those of the mini-CTC project. MNL advised . . . of the consequences for the project of ploughing Esat cables in advance of ploughing mini-CTC cables, but nevertheless were instructed . . . to do so", the four state in the document.

The Oireachtas committee was yesterday served with a large amount of documentation in relation to the affair by CIE and plans to question CIE representatives about the issue next week. In time it expects to hear evidence from MNL executives, Esat executives, and the Minister for Public Enterprise, Ms O'Rourke.