The Moriarty Tribunal this afternoon heard that though former Esat chairman Mr Denis O’Brien had "evil thoughts" about giving money to former minster Mr Michael Lowry, he had not acted on them.
The "evil thoughts" were mentioned in a letter to the former Esat Digifone chief executive Mr Barry Maloney from Mr Michael Walsh of IIU Nominees Ltd, an Esat Digifone shareholder. Today was Mr Maloney’s last day in the witness box in Dublin Castle.
The letter, dated October 14th, 1997, sought to reassure Mr Maloney that though Mr O’Brien had told him of giving money to Mr Lowry this had in fact not occurred.
"Denis has indicated that in or about October 1996 he intended to give money to Michael Lowry, told you he had done so and is adamant that in fact Lowry never received any of the money directly or indirectly from him."
Mr Walsh then wrote in summary: "Denis admits to having had evil thoughts but has confirmed that these thoughts were never brought to fruition."
When asked by Mr Jerry Healy SC, for the tribunal, what he thought "evil thoughts" meant,Mr Maloney said he took it to be a reference to the intermediary whom Mr O’Brien a few days earlier told him had got stuck with the money for Mr Lowry.
In this morning’s session Mr Maloney denied he had tried to delay the IPO of Esat Telecom in 1996 for personal gain.
Mr Maloney said he was concerned that a payment Mr O’Brien claimed to have made to Mr Lowry would be investigated by the tribunal. Mr Maloney said he went to Mr O’Brien suggesting a delay of the IPO even though he knew this could have a detrimental effect on the health of the company.
But he insisted any delay in the IPO of Esat Telecom would have had an equally damaging effect on Esat Digifone.
Council for Mr O'Brien, Mr Eoin McGonigal SC, put it to Mr Maloney that as Esat Telecom held a 45 per cent stake in Esat Digifone it would be difficult to convince investors that it would be in their interest to invest also in Esat Digifone should it be floated at a later date.
Mr Maloney said his only concern was whether the alleged payment by Mr O’Brien to Mr Lowry would be investigated by the newly appointed Moriarty tribunal and discussed the matter with him on October 8th.
"He [Denis O'Brien] said he would not go ahead with the IPO if he was in any doubt. Then he looked at me and said: ‘You’re not buying this are you?’.
"I said I was having trouble reconciling his assurances with his earlier statements. He said there would be no trouble with the tribunal or the timing of the IPO and he said what I didn’t tell you was that the money got stuck with a middleman and never got to Lowry or to his account."
Mr Maloney also denied he offered his resignation in 1996 for personal advantage but only because he wished to preserve his friendship with Mr O’Brien.
Mr Maloney received $40 million from the sale of Esat Digifone in 2000 compared to the $600,000-$700,000 he received for the floatation of Esat Telecom a few years earlier.