Dáil Éireann Debate, Tuesday - 16 July 2013
209. Deputy Pearse Doherty asked the Minister for Finance the necessary protections in place to ensure no National Asset Management Agency or State controlled bank property sales take place between connected or conflicted parties. [34258/13]
View answerI am advised by NAMA that where it approves the sale of any loan or approves the sale of any secured property by a debtor, it requires a confirmation that the purchaser is not connected to the debtor or other obligors. In line with this, NAMA Board guidelines require that sales agents prepare a final report and recommendation, which includes, inter alia, confirmation that the sales agent has reviewed the purchaser’s declaration relating to connected party sales and a statement disclosing any commercial relationship between the agent, debtor, purchaser or purchaser’s ultimate beneficial owners in the past five years and how any actual or perceived conflict of interest was managed during the sales process. I am further advised that AIB ensures that an appropriate market value is achieved for each asset sale. AIB uses various processes to achieve this on a case by case basis, as well as having a robust and externally validated property valuation policy and a Conflicts of Interest policy. Other controls range from external valuations, the use of auctions, the utilisation of an auctioneer unconnected to the borrower and solicitor confirmation that the transaction is at arm’s length. The exact method used depends very much on the circumstances of each case.
PTSB’s policy is that offers on all property sales are considered on a case by case basis and against two independent valuations.
