The National Asset Management Agency’s sales strategy for its Northern Irish loanbook, code-named Project Eagle, was seriously deficient, a report from the Public Accounts Committee has concluded. The sale led to a recorded loss of STG £162 on the transaction, with NAMA having recorded losses totalling €800 million in respect of its Northern Ireland loan portfolio in the period 2010-2014
The Committee concluded that:
• the sale of Project Eagle was not a well-designed sales process.
• NAMA’s failure to effect Mr Frank Cushnahan’s removal from NAMA’s Northern Ireland Advisory Committee, following his disclosures in relation to provision of consultancy services on behalf of a number of NAMA’s Northern Irish debtors, was a failure of corporate governance by NAMA.
• the NAMA Board was not explicitly informed of the extent of the financial loss which would be recorded in NAMA’s accounts as a result of setting the minimum reserve price of STG £1.3 billion.
• key elements of the Sales strategy were influenced by the firm, PIMCO, which made the initial approach to NAMA in respect of buying the Northern Ireland portfolio.
• the sales strategy pursued by NAMA included restrictions of such significance that the strategy could be described as seriously deficient
• NAMA has been unable to demonstrate that by pursuing such a strategy that it got value for money for the Irish State in relation to the price achieved.
The full report can be accessed here.
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