State to defend claims over Esat mobile phone licence

THE STATE is to fully defend claims arising from the 1995 mobile phone licence competition, Minister for Communications Pat Rabbitte said yesterday.

He was speaking after the Supreme Court overturned a 2007 ruling of the High Court that two cases against the State could not go ahead on the grounds of inordinate and inexcusable delay.

In both cases, former members of consortiums that submitted unsuccessful bids to the licence competition are seeking damages for alleged fraud, conspiracy, deceit, corruption and misfeasance in public office in relation to the highly valuable mobile licence award.

Last year the Moriarty tribunal found that businessman Denis O’Brien gave financial benefits to the then minister for communications, Michael Lowry, and that Mr Lowry interfered in the licence process to secure the winning of the licence for Mr O’Brien’s Esat Digifone.

The State may now adopt a position in the High Court that is at variance with these findings.

A Dublin businessman whose consortium, Persona, came second in the mobile phone licence competition has said he is determined to pursue his case for damages against the State.

Another consortium, Cellstar, came sixth out of the six bids.

Dublin businessmen Tony Boyle and Michael McGinley, of Sygma Wireless, now own Persona, while Galway businessman Declan Ganley is taking a case as a former member of the Cellstar consortium.

“We welcome the decision of the Supreme Court and we are determined to proceed with the matter,” Mr Boyle said. “A grievous injustice has been done. It is more than 12 months since the publication of the Moriarty report and there has been no action.”

He said he would not comment further until the Supreme Court issued a written judgment.

The Persona case is against the State while the case taken by Mr Ganley is against the State, Mr O’Brien, and Esat Digifone.

Mr Ganley could not be contacted but he commented on Twitter: “I’m delighted with Irish Supreme Court’s decision to allow my Cellstar appeal re 2nd Mobile licence ‘competition’.”

The Taoiseach, Enda Kenny, said the Government would await the court’s written judgment and would reflect on it.

“I understand that that written judgment may not be produced for some time so I’d prefer to see the written judgment and have the Government reflect on that in the light of the possible outcomes that might come from it.”

Both Mr Lowry and Mr O’Brien welcomed the Supreme Court’s decision and said they had long wanted the allegations concerning the competition to be ruled on by a court.

Some years ago the State and Mr O’Brien sought to have the two cases stopped on the grounds of inordinate delay.