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Irish High Court to Hear Corruption Allegations Over a 1995 GSM License Award
Published on:
Ireland's Supreme Court has given leave for two companies to sue after they were denied a GSM license -- back in 1995.
At the time, the government auctioned off the country's second GSM license, which was won by Esat Digifone (now owned by O2) after rejecting bids from six other companies.
In 2001, two of the losing bidders, Persona Digital and Comcast Group sued the government and Esat alleging fraud and corruption over the tender process.
It had been alleged that businessman Denis O'Brien (now the owner of Digicel) worked with the then Communications Minister, Michael Lowry to secure the winning bid. The licence award was the subject of inquiry and report by the Tribunal of Inquiry into Payments to Politicians (the Moriarty Tribunal).
The High Court ruled in the State's favour in 2007, dismissing these two cases in their entirety and awarding the State its costs. However, the Supreme Court has now overturned that decision.
It is anticipated that the two actions therefore now revert to the High Court, for trial and decision.
The Irish Minister for Communications, Pat Rabbitte TD commented on the decision saying: "The State will fully defend any claim against the Exchequer and will contest any claim of liability to pay damages from public funds to these plaintiffs."
Tags: [Ireland]
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