Money to fund the refurbishment of a house owned by Mr Michael Lowry TD came from the proceeds of lands sold in Spain, bought by businessman Mr Denis O'Brien, the Moriarty tribunal has heard.
Mr Lowry opened an Isle of Man bank account in October 1996 and shortly afterwards a bank draft for £147,000 was lodged to the account to refurbish his house in Carysfort Avenue, Blackrock, Dublin, Mr John Coughlan SC for the tribunal said.
The bank draft was bought by the late Mr David Austin, a Jefferson Smurfit executive and senior Fine Gael fund-raiser. Mr Austin had bought the bank draft using money from a Jersey account which was from the sale of property bought by Mr O'Brien in Spain.
Mr Lowry did not use the money but paid it back to Mr Austin on February 7th, 1997 - the day the McCracken tribunal was established.
Irish Nationwide Building Society, where Mr Lowry held his Isle of Man account, had refused to allow officials from the Isle of Man company to give evidence to the tribunal or assist the tribunal with information, Mr Coughlan said. At the time Mr Lowry had other ways of funding the refurbishment of the house in Carysfort Avenue, Mr Coughlan added.
The tribunal also heard Mr O'Brien, in December 1995 during a meeting in Oslo with Mr Arve Johansen of Telenor, the main partner in the Esat bid, had asked for a payment of $50,000 to be made to Fine Gael. Mr Johansen had told the tribunal Mr O'Brien didn't want to make the payment through Esat Digifone as the company had just secured the second mobile phone licence, and a payment to Fine Gael, which formed part of the government at the time, might have attracted adverse media coverage.
Esat Digifone would reimburse Telenor for the payment, Mr O'Brien told the Norwegian company.
Mr O'Brien had told the tribunal the meeting did take place but had not told the tribunal what took place during it, Mr Coughlan said.
Mr O'Brien asked Mr Johansen to contact Mr Austin in Dublin who told him the payment would be termed "consultancy work" on the invoice. The invoice dated December 14th, 1995, shows the payment was for consultancy work "as agreed with Mr Denis O'Brien".
Telenor then invoiced Mr Austin for the repayment of the money. An invoice in January 1996 requested payment of 360,000 crona. Telenor officials received a telephone call from Esat Digifone during which it was said: "We have shredded the invoice. We need a new invoice for $50,000 and provide an invoice without reference to David Austin."
The second invoice was again issued but was rejected, this time with Esat requesting a credit note in Irish pounds.
The credit note was issued but Esat requested that this invoice should not be issued until four to six weeks later. The invoice was finally issued on March 27th, 1996. Esat paid £31,300 in June 30th to Telenor.
Mr Austin sent a letter in February to Mr Johansen thanking him for the payment in December. "This was certainly not taken lightly on my part and not on those from who have received payment. Please be assured of their appreciation and thanks," the letter read.
Mr Austin was in contact with Mr John Bruton TD, then leader of Fine Gael, about the donation. Mr Bruton said he could not accept the donation so soon after the phone licence had been given.
Mr Jim Miley, former secretary of Fine Gael, had confirmed to the tribunal that he contacted Mr Austin by telephone, who told him he had asked Mr O'Brien to make a contribution to the party at a fund-raising dinner in New York in 1995. "Mr O'Brien has indicated to him that he wished to have a donation paid via Telenor in order to ensure confidentiality."
The money, having been refused by Mr Bruton, remained in an account in the Channel Islands in the name of Mr Austin. In late April or early May 1997 Mr Austin paid the money to Fine Gael "in the guise of a personal contribution", Mr Coughlan said.