O'Brien argued against donation's return - tribunal

Mr Denis O’Brien "strongly argued" against Fine Gael returning a $50,000 donation because there was nothing improper in the donation, the Moriarty tribunal heard today.

Mr Jim Miley, a former Fine Gael general secretary, told the tribunal of a meeting between himself and Mr O’Brien on March 4th 1998 at which the only issue was to inform Mr O’Brien of the party’s decision to return the cheque.

Mr Miley today said Mr O’Brien "urged him the contrary" when informed the donation was to be returned.

Mr Miley was asked by counsel for the tribunal, Mr Jerry Healy SC, if Mr O’Brien had suggested the party should never have sought the donation in the first place.

Mr Miley replied that former party fund-raiser, the late Mr David Austin had sought the donation, not the party.

Mr Miley added he did not recall if Mr O’Brien had said whether the donation was from Telenor or East Digifone.

Mr Miley was asked Mr Michael Lowry had not been contacted as part of the investigation in 1998 into the whereabouts of the money between its donation and the time it arrived in Fine Gael’s accounts.

Mr Miley said he was not sure how appropriate it would have been for him to contact Mr Lowry as he was one of the "prime focuses" of the tribunal at the time.

He denied a suggestion by Mr Healy that Fine Gael was "not enthusiastic" to refer the matter of the donation to the Moriarty tribunal.

Mr Miley said senior counsel advice had been sought and had indicated the matter was not necessarily within the terms of reference of the tribunal.

A memo from a meeting on February 16th, 1998 told of the "alarm" and "distress" of Mr John Bruton, the then Fine Gael Party leader, at learning of details of the donation and he "instructed the money be returned immediately".

Mr Miley said he understood from the memo that the donation was not to be accepted by the party.

The hearing continues this afternoon when Mr Bruton is expected to give evidence.