Wallace burrows into Nama workings through protected allegations

Independent TD Mick Wallace has raised a total of 24 allegations and questions about the National Asset Management Agency’s operations using parliamentary privilege.

In two contributions in the Dáil yesterday afternoon, both made under privilege, Mr Wallace’s most serious allegation was that an agency official had demanded a total of €30,000 from a developer wishing to exit Nama.

Later, he raised 20 questions, all related to the sale of Nama’s 850-property portfolio in Northern Ireland in 2014.

In a series of statements yesterday, Nama categorically denied some of the major allegations made by Mr Wallace. The agency also confirmed that its chief executive, Brendan McDonagh, had written to the Garda Commissioner requesting it investigate the allegation of corruption.

In his second contribution, during a debate on Northern Ireland, Mr Wallace raised questions on the property disposal, called Project Eagle, to Cerberus, a US-based property company. The sale yielded €1.6 billion for the agency.

Mr Wallace put 20 questions on the record of the Dáil, some relating to Frank Cushnahan, a former member of Nama’s advisory committee.

At the Public Accounts Committee last week, Nama chairman Frank Daly said Mr Cushnahan was to be one of three beneficiaries of a €15 million fund to be paid out by Pimco, the original portfolio bidder.

Withdraw bidding

Pimco withdrew from the bidding process soon after the existence of the fund was made known by them to Nama.

“Did [Frank] Cushnahan provide external parties with confidential information, which would provide same with an advantage over other bidders?” asked Mr Wallace.

“Why was Pimco prepared to split £15 million between Belfast solicitors Tughans, New York lawyers Brown Rudnick, and former Nama committee member Frank Cushnahan?” he queried.

“When exactly did Nama know of Cushnahan’s involvement with the Pimco fee arrangement? Why was no comment ever made around this ‘fee arrangement’ until the PAC hearing of the 9th July?

“We are now on notice that Mr Cushnahan operated out of an office in Northern Irish law firm Tughans,” the TD stated.

Mr Wallace also asked why Minister for Finance Michael Noonan had not intervened in suspending the sale to Cerberus.

He told the Dáil that the US lawyers “Brown Rudnick were conflicted in representing Cerberus, the successful bidder on the loan sale, having already represented Pimco”.

Among other issues raised in the questions by Mr Wallace was whether the Dublin or London offices of Brown Rudnick had acted for either debtors or loan or asset purchasers in relation to Nama previously. “If so, who? Have any of these deals been off market?”

Role of Bolger

Mr Wallace asked: “What role, if any, did [former managing partner in KPMG Dublin] Ron Bolger, who is stated as being Cerberus’ main representative in Ireland, have in this transaction?”

He also asked: “Why did Cerberus change lawyers after Pimco’s withdrawal from the bid?”

In a statement, Nama said many of the issues raised by Mr Wallace had been dealt with by Mr Daly and Mr McDonagh at the PAC last week.

Specifically a spokesman said Mr Cushnahan did not have access to confidential information related to Project Eagle. He said Nama did not suspend the sale process because there was “competitive tension from remaining bidders” and the agency was confident its minimum reserve price would be achieved.