Lowry's actions 'disgraceful' - tribunal

Former Fine Gael communications minister Michael Lowry's actions in influencing the awarding of Ireland's second mobile phone…

Former Fine Gael communications minister Michael Lowry's actions in influencing the awarding of Ireland's second mobile phone licence in 1996 were "disgraceful" and insidious," according to the Moriarty tribunal's report.

The report says that, as with the late Charles Haughey, Mr Lowry showed favour to wealthy or prominent individuals to obtain payments or other benefits.

"In the cynical and venal abuse of office, the brazen refusal to acknowledge the impropriety of his financial arrangements with Mr Denis O'Brien and Mr Ben Dunne, and by his contemptuous disregard for his taxation obligations, Mr Lowry displayed qualities similar in nature, and has cast a further shadow over his country's public life," it says.

The report says the Independent TD for Tipperary North gave "substantive information" to Mr O'Brien during meetings in 1995 that helped his company Esat Digifone to win the competition for the State's second mobile licence.

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Separately it finds that Mr Lowry sought to influence a rent rise in the lease for Telecom Éireann's head office at Marlborough House following a request from businessman Ben Dunne.

Mr Lowry today insisted that the report was "factually wrong and deliberately misleading".

The tribunal's report, which was published online this morning, says Mr Lowry displayed "an appreciable interest in the license competition,” had "irregular interactions with interested parties at its most sensitive stages, sought and received substantive information on emerging trends (and) made his preference as between the leading candidates known".

"Mr Lowry was far from being an encouraging but disinterested minister, who responded positively to the advice of his most senior civil servant that he should exercise caution in dealings with interested parties." the report adds.

According to the report, Mr Lowry "ultimately brought a guillotine down" on the work of the project group overseeing the mobile licence competition, and "proceeded to bypass consideration by his Cabinet colleagues and the then taoiseach John Bruton.

According to the tribunal Mr Lowry had at least two meetings with Mr O'Brien during the time the competition process was under way. The tribunal found it was “wholly incredible and inconceivable” that the pair did not talk about the licence.

The tribunal has also found that a payment of IR£147,000 made by Mr O'Brien- via a number of people - to Mr Lowry was "moved from Mr O’Brien’s account to Mr Lowry’s account in the Isle of Man" in a markedly clandestine and covert manner.

It also reports on a number of other payments and other benefits which were furnished by and on behalf of Mr O'Brien to Mr Lowry and says these were"demonstrably referable" to the acts and conduct of the then minister in regard to the mobile phone licence process.

The tribunal began its inquiry into the licence competition in 2002 after it discovered potential financial links between the former minister for communications Mr Lowry and Mr O’Brien.

It heard evidence that Mr O’Brien might have authorised a payment to Mr Lowry in the context of the Esat Digifone licence.

In addition to the tribunal's findings regarding the issuing of the mobile licence, the report has established that Mr Lowry sought to influence a rent review of the building which was part-owned by Mr Dunne.

Had it succeeded it would have resulted in a virtual doubling of the investment value of Mr Dunne's interest in the property from IR£5.4 million (€6.86 million) to IR£12.75 million.

"What was contemplated and attempted on the part of Mr Dunne and Mr Lowry was profoundly corrupt to a degree that was nothing short of breathtaking," the tribunal said.

"What was reprehensible about his actions was that the tenant of the building was Telecom Éireann, of which, as minister for communications, Mr Lowry was the ultimate shareholder. Had his attempt succeeded, the resultant benefit would have been at the expense of Telecom Éireann, the shares of which Mr Lowry held on behalf of the State, and therefore at the expense of the taxpayer," it adds.

Charlie Taylor

Charlie Taylor

Charlie Taylor is a former Irish Times business journalist