Telenor was told of Desmond company's 'political contacts'

Moriarty Tribunal: Norwegian company Telenor was told during the 1995 mobile phone licence competition that Mr Dermot Desmond's company, IIU Ltd, had "political contacts", the tribunal heard.

The Norwegian company was told this around the time IIU was joining the Esat Digifone consortium, according to yesterday's proceedings.

Mr Jerry Healy SC, for the tribunal, said Mr Arthur Moran, a solicitor with Matheson Ormsby Prentice solicitors, Dublin, is to tell the tribunal he believed Telenor was told that IIU had "political contacts in Ireland".

Mr Pers Simonsen, of Telenor, agreed with Mr Healy that most likely it was he who said this to Mr Moran. He said he did not remember being told this directly himself. It might have been Mr Denis O'Brien who had said it to him, or Mr Arve Johansen, another Telenor executive.

Mr Simonsen said he had not made any connection between the idea of IIU having political contacts and Mr O'Brien's comment to him about meeting with Mr Lowry in a pub.

Mr Simonsen has said he was told by Mr O'Brien in late September 1995, that Mr Lowry suggested to Mr O'Brien during a meeting in a pub that Mr Desmond's IIU should become part of the Digifone consortium.

Mr Simonsen said he did not give any weight to the story. Mr O'Brien has said he did meet Mr Lowry in a pub but that the two men did not discuss the mobile phone licence competition.

The tribunal was shown a copy of an attendance of Mr Moran's dated October 10th, 1995, which has been examined already a number of times. The attendance shows the words "political contacts" across the page from the word Communicorp, Mr O'Brien's holding company. However, the reference to political contacts appears under references to IIU Ltd and Mr Moran's statement to the tribunal indicates that it may be in reference to that company rather than Communicorp.

Mr Simonsen was questioned closely by Mr Eoin McGonigal SC, for Mr O'Brien, about the alleged conversation concerning the pub meeting. Mr Simonsen said it was his recollection that his conversation with Mr O'Brien occurred when no one else was present. Pressed on a number of aspects of the matter, he said his statement to the tribunal was based on his best recollection but he could be wrong.

When, at the end of Mr Simonsen's evidence, the chairman, Mr Justice Moriarty, began to revisit Mr Simonsen's evidence as to whether his recollection could be wrong, Mr McGonigal objected and the chairman did not continue.

Mr Simonsen told the chairman that he saw no difficulty or incompatibility with the content of a letter from the Norwegian Minister for Transport and Communications, prepared by Mr Simonsen for sending to Mr Lowry, in October 1995, and a subsequent $50,000 political donation by Telenor/Esat Digifone to Mr Lowry's party, Fine Gael. The letter was prepared at a time when no more submissions were to be sent in by the competing bidders. The letter highlighted Telenor's achievements and drew attention to "the high standards of industrial and social relations enjoyed in Norway".

However, during questioning by Mr John O'Donnell SC, for the Department of Transport, Energy and Communications, Mr Simonsen agreed the Norwegian letter may never have been sent. Mr Rossa Fanning, for Mr Lowry, said the former minister had no recollection of the letter. Mr Justice Moriarty said the content of the letter was "fairly innocuous".

Mr Simonsen told Mr Healy he never made any connection between Mr O'Brien's request that Telenor facilitate the political donation to Fine Gael, and Mr O'Brien's story about meeting Mr Lowry in a Dublin pub.