The minister, the PR man, the mogul and the secret phonecalls
Minister likely to survive after Dáil grilling over phone contact with PR executive on INM plan
COMMUNICATIONS Minister Denis Naughten is unlikely to be forced from office in a row over whether he inappropriately informed a PR executive about his thinking on a proposed merger between Independent News & Media (INM) and Celtic Media.
Fianna Fáil has stopped short of calling for his resignation, although the main Opposition party made it clear it intends to inflict maximum damage and discomfort on the Government.
The controversy centres on a phonecall Mr Naughten took from the director of public affairs at Heneghan PR, Eoghan Ó Neachtain in November 2016.
Mr Naughten said he expressed what he has described as a “personal view” that it was likely the proposed deal would be referred to the Broadcasting Authority of Ireland for a review in light of the scale of the proposed deal.
As part of its application to have inspectors appointed to investigate corporate governance issues at INM, the Office of the Director of Corporate Enforcement alleges Mr Ó Neachtain briefed PR executive Nigel Heneghan on the phonecall.
In turn, Mr Heneghan alerted INM’s then chairman Les- lie Buckley to the minister’s thinking, who then forwarded this message to INM’s largest shareholder, Denis O’Brien in a move the ODCE alleges may amount to “inside information” and potentially a breach of stock market rules.
COMMUNICATIONS Minister Denis Naughten is unlikely to be forced from office in a row over whether he inappropriately informed a PR executive about his thinking on the proposed merger between Independent News & Media (INM) and Celtic Media.
Fianna Fáil last night stopped short of calling for him to resign, although the main Opposition party made it clear it intends to inflict maximum damage on the Government.
Spokesman Timmy Dooley said the Minister was “dancing on the head of a pin” with his explanations.
He questioned whether Taoiseach Leo Varadkar “can live” with the knowledge that a minister supplied information to a lobbyist that he wasn’t willing to state on the Dáil record.
Sinn Féin has decided not to place a motion of no confidence in the minister as it would risk collapsing the Government and derailing the referendum on the Eighth Amendment.
Fine Gael ministers have rallied around their Independent colleague in a bid to fend off the threat of a general election.
The Taoiseach said Mr Naughten’s explanation of events “was clear”, while Housing Minister Eoghan Murphy and Justice Minister Charlie Flanagan also offered support.
The controversy centres on a call Mr Naughten took from the director of public affairs at Heneghan PR, Eoghan Ó Neachtain in November 2016.
Mr Ó Neachtain, who was acting for INM, told the Minister that the Competition and Consumer Protection Commission had approved the company’s acquisition of Celtic Media.
Mr Naughten expressed what he told the Dáil was “a purely personal view that the likely course of action would be a referral to a Phase Two assessment in accordance with the guidelines in light of the diversity and media plurality assessments required”.
He planned to refer the case to the Broadcasting Authority of Ireland (BAI) “in light of the scale of the proposed acquisition, its geographical concentration and the extent of ownership of regional media by INM at that point”.
As part of its application to have inspectors appointed to investigate corporate governance issues at INM, the Office of the Director of Corporate Enforcement’s (ODCE) alleges Mr Ó Neachtain briefed PR executive Nigel Heneghan about the call.
In turn, Mr Heneghan emailed INM’s then chairman Leslie Buckley, alerting him to the Minister’s thinking.
The State’s corporate watchdog claims Mr Buckley forwarded this message to INM’s largest shareholder, Denis O’Brien, in a move that may amount to “inside information” and potentially a breach of stock market rules.
During an hour-long Dáil session, Mr Naughten defended his position, saying it would have been “preferable if the conversation had not taken place”. But he repeatedly argued he didn’t express a “definitive view”.
The Minister said he had no inside information to offer the PR executive. “I did not give any definitive view to Mr Ó Neachtain. I made it quite clear to him that it was likely to go to Phase Two.
“That was my own opinion but I also made it crystal clear to him that I would be going on the advice that was provided by my official,” he said.
In a further twist, it emerged Mr Heneghan is on the BAI’s compliance committee – but the minister said he had “no function”in judging potential mergers.
Housing minister Eoghan Murphy said last night that Mr Naughten answered every question put to him and answered them “very well”. He said it is “not even a question” that Mr Naughten should resign.
Justice Minister Charlie Flanagan said Mr Naughten had addressed the issue “head-on”.
‘Fine Gael have rallied around their Independent colleague’