THE LEAD consultant to the 1995 mobile phone licence competition has said he was “really alarmed” by comments made by economist Peter Bacon during a private meeting with tribunal counsel in 2003.
Michael Andersen of consulting group AMI of Copenhagen was shown notes of a private meeting between Dr Bacon and the tribunal held after Dr Bacon had produced a draft report on the competition.
Dr Bacon is recorded as saying: “Everything points to Andersen having been manipulated. He was pushed around. He was a servant of the steering group.”
The steering group was made up of civil servants from the departments of communications and finance. The tribunal is investigating whether the then minister Michael Lowry interfered with the competition, which was won by Denis O’Brien’s Esat Digifone.
Responding to Jim O’Callaghan SC, for Mr O’Brien, Prof Andersen said he had not seen the note before.
“I am really alarmed by such a remark. My entire evidence here must show that AMI and I put a lot of effort into the evaluation and that we were actually in the driver’s seat in relation to the evaluation.”
Prof Andersen said he thought Dr Bacon’s report was “distorted”. It was obvious to a reader of the report, he said, that Dr Bacon had been progressing his work with underlying documents that were not fully correct and that he arrived at a result or presentation that was not correct.
During questioning from John O’Donnell SC, for the departments of finance and communications, the tribunal was shown invoice information indicating that Mr Andersen had charged for preparations for, and attendance at, a meeting in Copenhagen on September 28th, 1995, where he met with two members of the steering group.
The two members, Martin Brennan and Fintan Towey, have given evidence of meeting with Prof Andersen and working out a final ranking of the bids for the licence.
Last week Prof Andersen said he could not remember any such meeting but thought there could have been a conference call. He said his associate, who was also said to have been there, also could not remember it.
When Mr O’Donnell raised the issue, Michael McDowell SC, for the tribunal, intervened to say Mr O’Donnell was adopting a “feather duster” approach.
Mr O’Donnell said he was not prepared to “beat Prof Andersen over the head and call him a liar” as Mr McDowell wanted. Prof Andersen’s evidence had been that he could not remember the meeting.
Mr Justice Moriarty said the preponderance of evidence seemed to be that there was a meeting in Copenhagen involving the two civil servants and Mr Andersen.
Mr O’Callaghan quoted to Prof Andersen remarks in a lengthy opening statement on the licence issue, read out by the tribunal in 2002.
Some of the phrases used showed a misunderstanding and an underlying attitude that was not correct and did not accord with the actual facts, Prof Andersen said.
“I am seeing this for the first time and it represents an entirely distorted view of what went on and what was intended in the evaluation report.”
Prof Andersen said he did not share serious concerns Mr McDowell had said the tribunal had about how the bids for the licence were evaluated and how some weightings involved were changed.
He also said there was “nothing sinister” in another issue that had been raised by Mr McDowell during his questioning. This concerned the equity requirements that would be needed for the various consortiums in calculated worst-case scenarios. Prof Andersen explained how the requirements were derived.
“So there is nothing sinister in this?” said Mr O’Callaghan. “That’s fully correct,” said Prof Andersen. “I tried to bring this message across that [the difference] is based on underlying sensitivity analyses.”
Prof Andersen’s evidence continues today.
O'BRIEN LEGAL ACTION FURTHER CHALLENGE TO TRIBUNAL:
DENIS O’BRIEN is set to initiate another set of High Court proceedings complaining about the Moriarty tribunal.
Last week Mr O’Brien and Dermot Desmond failed in their effort to prevent the tribunal engaging the services of the former tánaiste and attorney general Michael McDowell SC to question telecoms consultant Michael Andersen. An appeal to the Supreme Court is expected tomorrow.
Mr O’Brien is also initiating judicial review proceedings against the decision of the tribunal chairman Mr Justice Michael Moriarty to restrict the questioning by his counsel of Prof Andersen.
Prof Andersen began giving evidence on Monday of last week and is to complete his evidence tomorrow. He has said that his diary is full thereafter until the latter half of next year.
Mr Justice Moriarty has outlined a schedule for barristers to question Prof Andersen, allocating restricted timeslots. He has also ruled that, apart from Prof Andersen’s own counsel, no questions can be asked about Prof Andersen’s private dealings with the tribunal legal team. Prof Andersen has said he detected a bias from his private dealings with the tribunal some years ago.
Tipperary North TD Michael Lowry, who is representing himself at the tribunal, has told the chairman he can “put away his stopwatch” when it comes to his turn to question Prof Andersen.
– COLM KEENA
