Former Esat Chairman Mr Denis O’Brien told the Moriarty Tribunal today of a meeting in May 1996 where he agreed to reimburse Telenor for a $50,000 political donation made to Fine Gael.
He insisted however that Esat did not make a donation of $50,000 to Fine Gael the previous year.
Mr O’Brien said a donation by Esat would have been "inappropriate" because of the proximity of the donation to the awarding of the Esat licence.
He recalled however that he had been asked by the now-deceased Fine Gael fundraiser, Mr David Austin, to buy two tables at a party fundraising dinner in New York.
Mr O'Brien declined the invitation but put Mr Austin in touch with Telenor, a 40 per cent shareholder in Esat Digifone.
In his evidence to the tribunal yesterday, Mr Arve Johansen, chairman of Telenor Invest A.S. and Telenor chief executive, said his company agreed to make a donation to Fine Gael on Esat's behalf, on condition that it be refunded to Telenor by Esat Digifone when the new mobile phone company was in funds.
Mr Johansen, giving evidence to the Moriarty Tribunal yesterday said Mr O'Brien phoned him some days later instructing him to ring Mr Austin to discuss the payment.
Mr O'Brien denied that there had been any discussion or agreement between himself and Mr Austin at the time of the Telenor donation.
Mr O’Brien said it was only at a subsequent meeting held the following year that he agreed to reimburse Telenor for their $50,000 political donation.
Counsel for the Tribunal, Mr John Coughlan said this important information was not contained in a written statement made to the Tribunal by Mr O'Brien. Mr O'Brien maintained, however, the donation was still made by Telenor and not by Esat.
Mr John Coughlan then asked Mr O’Brien if he was aware of an invoice billed to Telenor by Mr Austin which read: "Invoice for the consultancy work for the duration of 1995 as agreed with Mr Denis O’Brien."
Mr O’Brien replied: "I don’t know what it means because I agreed absolutely nothing."
The Tribunal will resume on June 12th.