A director of Esat Digifone warned Telenor chief executive Mr Arve Johansen he would hold Telenor liable if Esat Digifone was damaged by Telenor's investigations into the $50,000 donation to Fine Gael.
Mr Johansen said he had approached Fine Gael in February 1998 to seek confirmation that the donation, requested by Mr Denis O'Brien in 1995 and paid by Telenor on behalf of Esat Digifone, had been paid to the party.
At a meeting of Esat Digifone directors on November 4th, 1997, to discuss the implications of the setting up of the Moriarty tribunal, it was decided to contact Mr David Austin, then chairman of the Fine Gael fundraising committee, for a letter confirming the payment to Fine Gael, said Mr Johansen. Mr Austin's letter said he had received $50,000 from Telenor for a Fine Gael dinner in New York in December 1995.
Mr O'Brien drew up an affidavit dated November 6th, 1997, stating he had never made any payment to a political party or a politician in connection with, or as an inducement, reward or otherwise on account of their doing anything in respect of the licence.
"I have not done any act or thing in respect of the grant of the licence which would constitute an improper or unlawful act," Mr O'Brien added.
Despite resistance by other Esat Digifone directors, Telenor approached Fine Gael in 1998 and it emerged the payment by Telenor on behalf of Esat Digifone had been made as a personal donation from Mr Austin, Mr Johansen said. Because of this, Fine Gael gave the money back in Irish pounds, amounting to £33,000.
After receiving a bank draft from Fine Gael, Mr Johansen, on March 24th, 1998, handed the money on to Mr O'Brien at a board meeting of Esat Digifone, as Esat had already reimbursed the money to Telenor, he said.
In a letter on March 30th, a director of Esat Digifone, Mr Michael Walsh of IIU, which had a shareholding in Esat Digifone, said the company could not accept the bank draft.
"I wish to put you on notice that if Telenor have taken any action . . . which damages the Esat Digifone licence and, in particular, our investment, then we will hold Telenor fully liable."
Mr Johansen replied to the letter in April, saying: "At the chairman's request we facilitated the payment on behalf of Esat Digifone and were subsequently reimbursed . . . Our company has clearly done nothing improper."
Mr Walsh further wrote to Mr Johansen saying it was wrong for him to hold discussions with Fine Gael on behalf of Esat Digifone and to accept a cheque on behalf of the company.
Mr O'Brien returned the cheque to Fine Gael, and it was kept in a safe at headquarters, Mr Jerry Healy SC, for the tribunal, said. Because of media reports in February this year, Fine Gael sent a bank draft to Telenor's solicitors in the Republic. Telenor then sent the bank draft with a letter to Esat Digifone on March 14th.
Esat Digifone, on March 21st, refused to accept the draft, sent it back and sought a credit note for it. On May 14th, 2001, Tele nor sent the last letter regarding the matter to Esat Digifone with a credit note and draft.
Mr Johansen, at the end of his statement to the tribunal, rejected public statements by Mr O'Brien this year that Telenor had sought political contacts in the Republic. In all times in making the donation, Telenor acted in accordance with instructions from Mr O'Brien, he added.