PSNI starts criminal inquiry into Wallace Nama allegations

The PSNI has confirmed that it is launching a "criminal inquiry" into the allegations by independent TD Mick Wallace that a Northern Ireland politician or party may have been in line to benefit by up to £7 million as a result of a major Nama sale.

The announcement came as it emerged that Mr Wallace has refused to appear before the Dail’s Committee of Public Accounts to discuss allegations he made about the Nama sale.

Mr Wallace declined the invitation to clarify the claims with the committee and said it was his belief there should be an independent inquiry.

The committee discussed the possibility of compelling Mr Wallace before the PAC. However, the TDs insisted there was little appetite to make that move.

Chairman of the committee John McGuinness said the priority was to hear from Nama before deciding what to do next. He said: “We will decide whether we need to hear from Mick Wallace has to say after we hear from Nama.

“There is an onus on Mr Wallace to give the information he has put in the public domain to the Gardai, to the Public Accounts Commitee or his statement goes uninvestigated.”

Nama chairman Frank Daly and chief executive Brendan McDonagh will appear before the committee today and will be joined by Department of Finance official Declan Reid.

Mr Wallace, Nama officials, former Tughans managing partner Ian Coulter and former Northern Ireland advisor to Nama Frank Cushnahan are among the people the PSNI will want to question in its investigation, a senior police source said last night.

The PSNI has already been in touch with the Garda about the claims made by Mr Wallace, the source added.

The PSNI said yesterday that a “criminal inquiry will be launched in relation to concerns raised over the sale of Nama’s NI property portfolio and the recent claims made in the Irish parliament by independent TD Mick Wallace”.

Mr Wallace claimed that £7 million (€9.8 million) that was lodged by former managing partner at Tughans, Ian Coulter, was reportedly intended for a Northern Ireland politician or party. Mr Coulter subsequently left the law firm and the money was retrieved.

Assistant chief constable Will Kerr of PSNI Crime Operations said: "We believe that there is sufficient concern in relation to potential criminal activity, surrounding this property deal, to instigate an investigation.

It is understood that the UK National Crime Agency, which deals with serious organised crime across international borders, is one of the agencies that will assist the PSNI. This is because the investigation relates to Nama in the Republic, to US firm Cerberus, which bought the 850-property portfolio, and to another American company, Pimco, which in disputed circumstances withdrew from the sale.

Meanwhile, confusion surrounds the status of a meeting between Cerberus, First Minister Peter Robinson and others at Stormont just 10 days before the US company bought the 850-property Nama portfolio for less than £1.5 million.

Mr Coulter also attended this meeting.

Cerberus has characterised the meeting on March 25th last year between former US vice-president Dan Quayle, who is chairman of Cerberus’ global investments, and Mr Robinson, then finance minister Simon Hamilton, and Mr Coulter as an “official” meeting.

However, Deputy First Minister Martin McGuinness has said that it could not have been an official engagement. He said all official meetings involving the First Minister and/or the Deputy First Minister must be agreed by both him and Mr Robinson and that he was not aware of the meeting on that date.