The tribunal chairman put it to Mr James Stafford yesterday that it had been a "dilution of the truth" not to disclose to the IRTC that Mr John Mulhern had a financial involvement in Century Communications.
Mr Stafford replied he thought he had been factually correct in the information he gave the IRTC.
He had been asked by Mr Pat Hanratty SC about the application by Century to the IRTC for the national commercial radio licence on January 12th, 1989, in which IRTC chairman Mr Justice Henchy was told 25.5 per cent was owned by Mr Oliver Barry and 25.5 per cent by Mr Stafford.
Mr Hanratty said Mr Stafford said nothing about the fact Mr Mulhern had a share option. Mr Stafford replied that at that time the ownership was 50/50, as shares had not been issued.
The tribunal chairman intervened to ask if Mr Mulhern had not clear-cut equity, in that he had put up one third of the capital. Mr Stafford said that was incorrect; Mr Mulhern contributed one third of costs of the equity interest but it was a loan, he said.
The chairman asked: "Mr Stafford, are you seriously contending that a person who puts up one third of the equity for a company is not entitled to claim that equity and require delivery of a shares option?" Mr Stafford said Mr Mulhern could have asked to exercise his option but could not have done so without the IRTC's consent. The chairman said: "Isn't it the fact of the matter that you did not disclose that factor to the IRTC, in particular to Mr Justice Henchy?" Mr Stafford replied: "I did not disclose my arrangement with Mr Mulhern to Mr Justice Henchy, that's correct."
The chairman said: "And the result of that was that the answer was not complete, and I'm being courteous when I'm using the phrase `not complete'?"
Mr Stafford replied: "I'm sure if your lordship feels it wasn't complete, your lordship is probably right, but I feel it is complete in the sense that I had actually absolute ownership and he hadn't exercised his option." The chairman said: "Wasn't that in fact a dilution of the truth?" Mr Stafford said he thought he had been factually correct.