Mr Dermot Desmond told the Moriarty tribunal his company made more than £100 million from its involvement in Esat Digifone.
The three main shareholders in the East Digifone consortium were Mr Denis O'Brien's company, Esat Telecom, Telenor, the former Norweigan partner, and Mr Desmond's company, IIU Nominees Ltd.
As Mr Desmond took the witness stand yesterday morning, he was told the tribunal was interested in the $50,000 payment to Fine Gael by Telenor.
Later, under questioning by Mr Eoghan Fitzsimons SC, for Telenor, Mr Desmond was asked when Mr O'Brien first told him about the payment to Fine Gael, which Mr Fitzsimons said Mr O'Brien had "procurred". Mr Desmond said he thought this happened in October 1997.
Mr Fitzsimons asked Mr Desmond if he had any complaints that Mr O'Brien didn't inform him before this date.
"I have a complaint with Denis O'Brien and with Telenor," Mr Desmond said. It was a "sensitive issue" and he would have expected both shareholders - Mr O'Brien and Telenor - to tell him about the payment.
Mr Fitzsimons said to Mr Desmond there was a dispute between Telenor and Mr O'Brien as to whether the $50,000 was paid on behalf of Telenor, or by Telenor on behalf of Esat Digifone. Mr Desmond said he was of the view that the payment was made by Telenor on behalf of Telenor.
Mr Fitzsimons asked Mr Desmond who brought him into the project. Mr Desmond said it was Mr O'Brien.
Mr Fitzsimons asked: "So you're sticking by him?"
Mr Desmond answered: "Yes, I'm sticking by Denis O'Brien."
However, Mr Desmond later agreed with Mr Fitzsimons that Mr O'Brien had "broken his duty of good faith" by not telling him about the Fine Gael contribution.
Mr Desmond revealed that although he became an official Esat Digifone shareholder on the signing of an agreement in May 1996, when the licence was granted, he had been what he called "acting" as a shareholder since August 1995.
He agreed with the chairman, Mr Justice Moriarty, that it was an "insensitive time" for any company to be seen to make a payment to a political party.
Earlier, Mr Jerry Healy SC, for the tribunal, asked Mr Desmond about allegations that Mr O'Brien had given money to Mr Michael Lowry, the former Fine Gael minister who had the power to award the licence.
Questioned about an alleged payment of £100,000 by Mr O`Brien to Mr Lowry, the witness said he was in any case "certain" that the awarding of the licence could not have been influenced by Mr Lowry.
Investigations into the alleged payment were carried out, Mr Desmond said, "and as there was no evidence to the contrary, that's when I accepted Denis's word".
Mr Desmond repeated that he did not believe Mr Lowry could ever affect the granting of the licence, but he agreed that the suggestion could have "tainted" the public's perception of the award.
Returning to the $50,000 donation to Fine Gael, Mr Healy suggested this was a political contribution that had been delivered in a "concealed way" by a "concealed route".
Mr Desmond replied that he did not know how the money was "directed or routed through".
He continued: "If I had known at the time I'd have said, `Why not send them a cheque directly . . . why go a circuitous route?' "
Mr Desmond was confident he had asked for confirmation at the time that Fine Gael had received the money. "That was one question I did ask at the time: `Let's get confirmation that they received the money'. I'm absolutely sure I asked that question."
