State Open to Massive Liabilities in Phone Licence Case

Sponge Bob

This is a legacy issue from Michael Lowrys ministry in the 1990s and potentially a very expensive one. It will result in a rerun of the ESAT Digifone module from the tribunals ....but in court this time.

I would estimate the potential liabilities as 'up to' €4-5bn on the outside although it could be as low as €0.

http://www.rte.ie/news/2012/0717/supreme-court-rules-esat-damages-case-can-proceed.html

Much depends on whether adverse findings ( if any) are against the state or against individuals such as O Brien instead.

Comcast International Holdings Incorporated and Persona Digital Telephony Ltd initiated separate actions in 2001 against the State, the Minister for Public Enterprise, Esat Digifone and its former chairman Denis O'Brien, in which they challenged the licence award.


The companies were seeking millions of euro in damages.


In June 2007, the State secured orders from the High Court stopping the cases on grounds of inordinate and inexcusable delay in prosecuting them.
A similar motion by Mr O'Brien to halt the action against him on grounds of delay was "parked" pending the outcome of the consortia's appeals to the Supreme Court against the halting of their cases against the State.

Bit more info here.

http://www.irishtimes.com/newspaper/ireland/2012/0713/1224319966632.html

Wider Road

This is also a legacy of the last time FG were in government. Lowry then, Hogan & Reilly now. The more things change, the more they stay the same!

Slideshowbob

Would the other 2 be entitled to loss of profit for last 17 years?

How much have Esat / o2 made in Ireland in those years?

juan.kerr

Logically it would be strange if they were both successful in taking their cases. After all they couldn't both have won the one licence that was going.

Sponge Bob

Slideshowbob wrote: »

How much have Esat / o2 made in Ireland in those years?

Transparency International suggested it be confiscated.

https://www.facebook.com/note.php?note_id=162782053777773

Transparency International (Transparency) Ireland has asked that the Gardaí, Criminal Assets Bureau, Office of the Director of Corporate Enforcement and Norwegian authorities lead investigations into any prima facie criminal activities or company law violations surrounding the award of Ireland’s second mobile licence in 1995. The Organisation for Economic Cooperation and Development (OECD) will also be asked to review progress in the case.

The statement comes after Tuesday’s publication of the final Moriarty Tribunal report on payments to Irish politicians which found that the former Minister for Communications Michael Lowry had received over £500,000 in secret payments in respect of his time as Minister overseeing the award of the telecommunications licence.

They continued.

The anti-corruption group has also called for:

1. The identification and potential freezing of profits arising from any illicit payment made directly or indirectly to Mr Lowry by Mr Denis O’Brien, or any other members of the winning Esat Digifone consortium, or their agents.

2. The Norwegian authorities to investigate an attempt by Telenor Mobile to make a secret £50,000 (€63,000) donation to the Fine Gael party after the award of the licence to the Esat Digifone consortium of which Telenor Mobile was a member.

And the how, long standing anti corruption legislation.

Must a conviction of corruption be secured before the proceeds of a corrupt transaction can be seized?


No. Under the Proceeds of Crime (Amendment) Act 2005 the High Court can order that the proceeds of any crime including corruption be frozen or seized by the State. The order is made after the court has ruled, on the balance of probabilities, that a corrupt transaction led to the enrichment of an individual or organisation.

Is witness testimony required to secure a conviction for corruption?

No witness testimony is required under the Prevention of Corruption Acts, to secure a conviction for corruption. A jury simply needs to be convinced, beyond a reasonable doubt, that corruption has occurred. In some cases financial evidence may be sufficient, in others, witness testimony may be necessary. This is the reason universal ‘whistleblower’ legislation and some form of witness leniency programme are urgently needed.

tails_naf

I believe one of the companies bidding for the license said in an TV interview that if they would not seek the billions in damages from the state they would be entitled to, but would rather those who were involved in the corruption that led to the mis-awarding of the license be prosecuted.

Nice way of 'challenging' the state to deal with corruption in order to save billions.

Wider Road

tails_naf wrote: »

I believe one of the companies bidding for the license said in an TV interview that if they would not seek the billions in damages from the state they would be entitled to, but would rather those who were involved in the corruption that led to the mis-awarding of the license be prosecuted.

Nice way of 'challenging' the state to deal with corruption in order to save billions.

It's a good "challenge" in theory but in reality it's not possible. My reason for this is that you could have one company "challenging" the state to deal with corruption in order to save billions yet there is nothing to stop the other company in making billions! It would be nice to deal with the corruption without having to payout the billions, but very unlikely.

Wider Road

Ml Lowry & Denis O'Brien have welcomed a decision that leads the way for 2 losing bidders in the phone license scandal to challenge the findings of the awarding of the largest contract in the history of the state to Esat. Over the last few months, Pat Rabbitte has come out in support of Minister Brendan Howlin who said that there should be consequences for people against whom adverse findings have been made at the Moriarty & Mahon tribunals. Labour Minister has also stated that the Government should review it's contracts with such people after Taoiseach Enda Kenny was photographed alongside businessman Denis O'Brien at the New York Stock Exchange during St Patrick's weekend! The Moriarty Tribunal found that former FG Minister Lowry received a payment of £447,000 from Denis O'Brien and he also benefited from other financial arrangements that collectively amounted to nearly 1m! Both Lowry & O'Brien have rejected the tribunal but for some strange reason, they confirmed that they do not intend to challenge the finding's of the Moriarty Tribunal in the High Court! The Government has now sent the Moriarty tribunal report to the Gardai.
This could cost up to five Billion!

Does anyone on this site think that Ml Lowry was honest in the awarding of the phone license to Denis O'Brien?

Anyone.