Top civil servant stands over awarding of licence to Esat

The former secretary general of the Department of Transport, Energy and Communications, Mr John Loughrey, has said he is "totally…

The former secretary general of the Department of Transport, Energy and Communications, Mr John Loughrey, has said he is "totally standing over" the awarding of the State's second mobile phone licence to Esat Digifone.

Mr Loughrey, who finished giving evidence yesterday after eight days in the witness box, told Mr Rossa Fanning, for Mr Michael Lowry TD, he believed Mr Lowry did not interfere and could not have interfered in the competition which led to Esat Digifone being given exclusive rights to negotiate for the licence.

Mr Loughrey told Mr John O'Donnell SC, for the Department, he was never subjected to influences which were intended to compromise his independence or overpower his will in relation to the licence competition or the licence award.

He also told Mr O'Donnell it was "well nigh impossible" that something untoward had gone on in the Department in relation to the licence process without it being brought to his attention. He said he was certain he would have picked up on any "disquiet in the corridors" if it had existed.

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Asked about the suggestion that the Department's team had been "gotten on side", Mr Loughrey said the idea that senior civil servants would be "awe struck" by business people who came into the Department was "nonsensical".

Civil servants at a higher level were used to seeing figures of European and world importance. There was "no question" that the Department was infiltrated in any improper way by the consortium.

He said the performance of Esat Digifone in the years up to late 1999, when the original shareholders sold their shares, was "exceptional".

During the period the Republic moved from behind in Europe in relation to mobile telephony to a leading position. In two-and-a-half years Esat Digifone went from having no customers to having half a million.

"It was the fastest-growing mobile phone company in the world." He said the judgment of the project team which had selected Esat Digifone had been vindicated.

Mr Loughrey said he was "surprised and disappointed" he had not at the time seen a copy of a report in The Irish Times, dated February 28th, 1996.

The Department had a good press cuttings service. Mr Eoin McGonigal SC, for Mr Denis O'Brien, showed the report to the tribunal and said it had only been noted that morning. The report included the information that the shareholding configuration in Esat Digifone at the time was 37.5:37.5:25 per cent, with Mr Dermot Desmond's IIU Ltd holding the 25 per cent.

The tribunal has heard that the Department did not learn of this shareholding configuration until April 1996 and was very concerned about it as it differed from the configuration in the original bid for the licence.

Mr Loughrey said that had he seen the article he would have taken it very seriously given that it was written by journalist Mr John McManus and because of the detail it contained.

He agreed with Mr McGonigal the inference could be drawn from the article that Esat Digifone was "comfortable" with the shareholder configuration being known.

The tribunal continues today.

Colm Keena

Colm Keena

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