Nama runs up €27.5m legal bill in two years

THE NATIONAL Asset Management Agency has spent €27.55 million on legal expenses since it was established just over two years ago, with the Dublin-based law firm Arthur Cox the highest paid to date.

A total of €16.46 million was expended on legal fees to Irish and international firms last year, €9.75 million in 2010, and more than €1.35 million so far this year.

Arthur Cox, the State’s biggest law practice, has received €3.07 million from Nama so far; €1.9 million in 2010 and €1.16 million in 2011.

The international legal firm Hogan Lovells has earned €2.93 million to date. The London practice Allen Overy received €2.47 million.

The figures were sent by Nama chief executive Brendan McDonagh to Sinn Féin leader Gerry Adams, who in a parliamentary question sought a breakdown of the “top 10” recipients of legal fees.

“After a full year of Fine Gael and Labour in Government, the only people who appear to be benefiting from Nama are the legal and accounting professions,” Mr Adams said.

The remaining firms in the top 10 were Maples and Calder (€2.05 million), Matheson Ormsby Prentice (€1.58 million), Byrne Wallace (€1.51 million), William Fry (€1.45 million), AL Goodbody (€1.37 million), Dillon Eustace (€1.19 million) and Beauchamps (€1.17 million).

Mr McDonagh’s response to Mr Adams also said Nama had recovered €10.14 million of the €27.55 million paid to date from the financial institutions as it related to due diligence on loan acquisition.

A spokesman for Nama said the organisation had saved the State a large multiple of the legal costs incurred. “The legal costs incurred in 2010 and 2011 relate to legal due diligence conducted on loans which Nama acquired from the participating institutions,” he said.

“Arising from these reviews, questions were raised about the enforceability of security in certain cases, and as a result legal discounts amounting to €368 million were imposed; this reduced correspondingly the acquisition cost of the loans.” This related only to the first five tranches and the value of discounts applied in later tranches was currently being quantified, he added.

Nama was established on December 21st 2009.