NAMA's Project Eagle Sales Strategy seriously deficient – PAC

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.

Media Enquiries to:

Ciaran Brennan,
Communications Unit,
Houses of the Oireachtas,
Leinster House,
Dublin 2.

P: +353 1 6183903
M: +353 86 0496518
Email: Ciaran.brennan@oireachtas.ie
Twitter: @OireachtasNews

Committee Membership:

Bobby Aylward        Fianna Fáil
Peter Burke        Fine Gael
Shane Cassells        Fianna Fáil
Catherine Connolly    Independent
David Cullinane        Sinn Féin
Alan Farrell        Fine Gael
Séan Fleming        Fianna Fáil
Alan Kelly        Labour
Marc MacSharry        Fianna Fáil
Josepha Madigan    Fine Gael
Mary Lou McDonald    Sinn Féin
Noel Rock        Fine Gael
Catherine Murphy    Social Democrats-Green Party Group