PAC chairman rejects Nama claim about ‘material errors’ in Project Eagle report

The chairman of the Public Accounts Committee has rejected a contention by the National Assets Management Agency that there were “material errors” in its final report on Project Eagle.

Project Eagle was the name given to the proposed disposal of 800 properties held by Northern Irish debtors, assets which were acquired by Nama. They were sold to the US financial company Cerberus for £1.3 billion.

Fianna Fáil TD Seán Fleming responded to a letter from Nama chairman Frank Daly which took issue with two of the findings in the committee’s report on the manner in which Nama handled its biggest single disposal of assets. The report was critical of the manner in which the sale was conducted.

In his letter, Mr Daly referred to two “material errors”. He said that evidence given to the committee by a former board member John Corrigan disclosed the board, in selling the portfolio for £1.3 billion “was conscious there could be a loss of £180 million”.

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He also said two board members stated at committee hearings they had been informed that Nama executives had met with the successful bidder, Cerberus, on the day prior to the closing bid date. He said this contradicted the report’s finding that the board should have been informed.

Northern Irish debtors

A report by Comptroller and Auditor General Séamus McCarthy concluded in a special report that decisions taken on how to proceed with the sale could have led to losses to the taxpayer. This conclusion was strongly disputed by Nama.

In its own report on Project Eagle, the PAC backed the findings of Mr McCarthy.

On Friday, Mr Fleming responded to Mr Daly’s letter by saying the committee had not been provided with evidence that the board was specifically informed of this loss.

He added that if Mr Corrigan said he was aware of a potential £180 million loss, “why did Nama argued so vehemently against the C&AG’s conclusion that the decision to sell the loans at a minimum price of £1.3 billion involved a significant probable loss of value up to £190 million. It simply does not make sense.”

He also said that the PAC had written to Nama specifically asking it to provide any information on what information, if any, was given to the board about the meeting with Cerberus.

“On 22 December 2016, Nama responded to the Committee stating: ‘As is evident from the minutes of the Nama Board meetings, the meeting with Cerberus was not discussed at Board level as Project Eagle was not discussed at the meeting with Cerberus’.”

He said he would forward the information to the commission of investigation on Project Eagle when it is established.

In response, Nama said it stands over the content of its letter to the PAC.

“It will be happy to deal with this matter at the commission,” a spokesman said.

“It will commit all necessary resources towards ensuring that the commission of investigation receives all of the information that it requires and which is held by Nama.”