News of Telenor's donation to Fine Gael was a cause for "real public disquiet", and the party's account of the matter raised more questions than it answered, a Fianna Fail spokesman said last night.
The Minister of State, Mr Martin Cullen, added it was clear Fine Gael directly solicited support from Esat for a November 1995 fund-raising dinner in New York, when a Cabinet committee was agreeing with the decision of the minister, Mr Michael Lowry, to award the firm the mobile phone licence.
Mr Cullen said that, according to the Fine Gael statement, the payment had been considered a personal contribution from a party supporter, Mr David Austen. But the statement also said Telenor had promised to take two tables at the New York event.
"This raises the question as to why nobody in Fine Gael sought payment for the two corporate tables for which they had been promised $50,000 by Telenor."
Mr Cullen added: "Even more worryingly, the statement indicates that Fine Gael are only now proposing to `write to the Moriarty tribunal and to offer to it the fullest co-operation' on this matter."
The Labour Party said the controversy was "further proof that it is time to ban corporate funding of politics".