Taoiseach resists calls for Nama deal inquiry after arrests

Britain’s National Crime Agency holds two men in North in fraud investigation

Taoiseach Enda Kenny has continued to resist calls for an inquiry into the sale of €1.6 billion of Nama loans in Northern Ireland, despite the ongoing investigation in the North leading to two arrests yesterday.

Britain's National Crime Agency confirmed it arrested two people and carried out searches in Co Down in connection with a fraud investigation that has been under way for months.

The agency is investigating claims that senior business people and politicians were to benefit from Nama's sale of the loans, known as Project Eagle, to US company Cerberus in 2014 for €1.6 billion.

Independent TD Mick Wallace has had repeated contacts with the NCA, which is headquartered in London, spending two hours in one meeting with its detectives in March.

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Mr Wallace has made a number of claims under Dáil privilege about Nama executives and advisers, including former Northern Ireland advisory board member Frank Cushnahan and former executive Ronnie Hanna.

Last November he told the Dáil: “Frank Cushnahan was looking after the political side in the North and Ronnie Hanna was looking after matters inside Nama in Dublin.”

No access

Nama denied his claims and has insisted Mr Cushnahan had no access to any confidential information relating to any of its clients. The agency did not comment yesterday.

Last night Mr Wallace said it was “outrageous” there had been no inquiry into the sale in the Republic. He said there were inquiries in the US and in Britain, but none in Ireland.

He said if either of the people arrested ever worked for Nama, it would overturn claims by the Taoiseach that it was “only a Northern Ireland issue”.

Following the deal, Belfast law firm Tughans, which worked on the Cerberus bid, found its managing partner, Ian Coulter, had moved £6 million to an Isle of Man account. He resigned when an audit unearthed the transfer.

Mr Cushnahan was secretly recorded by the BBC claiming the money was meant to pay him for work he had done for Cerberus.

However, the US company had told Nama that no one connected with the agency was involved in its bid. It maintained that it acted according to the highest standards.

Dropped its bid

Another US company,

Pimco

, dropped its bid for Project Eagle after telling Nama it had agreed to pay £5 million each to Mr Cushnahan, Tughans and US lawyers

Brown Rudnick

.

Mr Cushnahan resigned from the Nama committee in November 2013. After Pimco dropped out, Tughans and Brown Rudnick switched to work on the Cerberus bid.

The arrests were raised in the Dáil yesterday by Sinn Féin leader Gerry Adams.

“In the public interest, the whole matter must be fully investigated to get to the bottom of allegations of wrongdoing and cosy cartels which has cost the Irish State hundreds of millions of euro. The Government should commit to the immediate establishment of a commission of investigation into the sale of Project Eagle.”

Mr Kenny insisted "there is no allegation of wrongdoing against Nama", saying there had been lengthy discussions on the issue, with Nama attending before the Public Accounts Committee. He said the Minister for Finance had made a detailed statement on the issue. Mr Adams claimed the Minister had not made a detailed statement on the matter and said "it's impossible to get information from any of your Ministers on an issue as serious as this one".

Pat Leahy

Pat Leahy

Pat Leahy is Political Editor of The Irish Times

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas