Lowry suggested Desmond role in Esat consortium, inquiry told

Moriarty Tribunal: Mr Michael Lowry suggested in September 1995 that Mr Dermot Desmond become part of the Esat Digifone consortium…

Moriarty Tribunal: Mr Michael Lowry suggested in September 1995 that Mr Dermot Desmond become part of the Esat Digifone consortium, a Norwegian executive has said he was told by Mr Denis O'Brien.

Mr Per Simonsen, of Norwegian company Telenor, said he was told by Mr O'Brien in late September 1995 that the suggestion was made by the then minister during a chance meeting between Mr O'Brien and Mr Lowry in a pub.

Mr Simonsen said that at the time he did not believe that the meeting had occurred or that the suggestion had been made.

He said he believed Mr O'Brien was saying it had happened because he, Mr O'Brien, was at the time trying to convince Telenor to accept a reduction in its shareholding in Digifone as part of the deal being offered to Mr Desmond's company, IIU Ltd.

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It was a "convenient argument" for Mr O'Brien to make, he said. Mr Simonsen told Mr Jerry Healy SC, for the tribunal, that he could not recall where his conversation with Mr O'Brien took place or exactly when it took place. He agreed it could have occurred on September 22nd, 1995, in Oslo, after a meeting between Mr O'Brien and Mr Arve Johansen, of Telenor.

He had no doubt but that he could recall the conversation with Mr O'Brien.

The tribunal was told that Mr Johansen is to say that Mr Simonsen told him of his conversation with Mr O'Brien, probably in late September 1995. Mr Johansen will say he recalled being told that Mr Lowry had suggested that it would be helpful if IIU Ltd was involved. He will say he attached no importance to the story.

He is to say that he raised the matter later, around the time Esat Telecom was having an initial placing of shares in the US, and when Digifone was considering alleged comments by Mr O'Brien that he had made two £100,000 payments, one of them to Mr Lowry.

He will say that when he asked if anyone else had heard of the alleged meeting in the pub, there was silence until Digifone director Mr John Callaghan asked if anyone had heard of an alleged meeting on a plane. His impression was that no-one was taking the matter seriously.

Mr Simonsen told Mr Healy that he was aware Mr O'Brien denies ever having told him that Mr Lowry had made the suggestion being alleged. Mr Simonsen is to continue his evidence today.

Colm Keena

Colm Keena

Colm Keena is an Irish Times journalist. He was previously legal-affairs correspondent and public-affairs correspondent