The tribunal would inquire into the various overlapping relationships between Mr Denis O'Brien, Mr Aidan Phelan and Mr Michael Lowry in connection with two UK property transactions, it was stated yesterday.
The tribunal was told of two transactions, one in Mansfield and the other in Cheadle, Manchester.
At the conclusion of the opening statement by Mr John Coughlan SC, for the tribunal, the chairman emphasised that the matters opened were to an outline of evidence it was intended to hear. No conclusion should be drawn.
"This does all occur at quite a delicate time in the context of other issues that are pending in the commercial world, and the tribunal has had regard to that factor," he said.
Having regard to the time that had elapsed, and the amount of material already in the public domain, they felt it incumbent on them to proceed with the evidence.
"The tribunal will wish to inquire into the various overlapping relationships between Mr Denis O'Brien, Mr Aidan Phelan and Mr Michael Lowry in connection with these two transactions," Mr Coughlan said.
They would inquire into the way they were funded, the fact they did not appear to have been brought to the tribunal's attention and that steps appeared to have been taken to conceal the identities of the true parties.
They would inquire whether there was any connection between these relationships and the fact that Mr O'Brien and Mr David Austin appeared to have been involved in aspects of the Telenor payment of $50,000 and the funding of a bank account Mr Lowry had in the Irish Nationwide, Isle of Man.
He said last March the tribunal was contacted by solicitors for Investec, a bank which had taken over the banking business of GE Capital Woodchester, about concerns over loan transactions which concerned Mr O'Brien and Mr Lowry.
The tribunal was informed by Mr Lowry that some time in July 1998, Mr Kevin Phelan, a UK property development consultant, told him he had located a development site at Mansfield.
Mr Lowry said he agreed to purchase it for £250,000 sterling. Mr Phelan undertook to seek an investment partner and introduced Mr Lowry to Mr Christopher Vaughan, a Southampton solicitor.
Mr Lowry forwarded a £25,000 deposit to Mr Vaughan in December 1998. By March 1999 the balance had to be provided. At that time, it appeared Mr Lowry came into contact with Mr Aidan Phelan, who was a close associate of Mr O'Brien.
A sum of £300,000 sterling was provided by Mr Phelan from an account in Credit Suisse First Boston, London. It was paid into the client account of Mr Vaughan for the credit of Mr Lowry and Mr Phelan.
"The account in Credit Suisse First Boston, London, from which the funds were transferred was in fact an account of Mr Denis O'Brien," Mr Coughlan said.
Mr Aidan Phelan said he had Mr O'Brien's authority to draw the sum.
Mr Coughlan said Mr Kevin Phelan was also responsible for bringing the Cheadle property to Mr Lowry's attention.
The £44,000 deposit was paid in September 1999. It would appear it was funded by the balance of the £300,000 sterling credit. The sale was due to close in November 1999.
"By the time that pressure came on to close the sale, Mr Lowry obtained the funds through the intercession of Mr Aidan Phelan," he said.
Mr Phelan told the tribunal he contacted Mr Michael Tunney of GE Capital Woodchester and sought sanction for a £420,000 sterling loan. The loan was repaid on March 21st this year by Mr Phelan.
"He [Lowry] has indicated that he knew nothing whatsoever of any connection between Mr Phelan and Mr O'Brien which would have had an impact on this transaction or any involvement of Mr O'Brien in this transaction or in provision of financing for the earlier Mansfield transaction.
"Mr O'Brien has indicated that he knows nothing of these two property transactions," Mr Coughlan concluded.