Dáil Éireann Debate, Tuesday - 14 July 2015
292. Deputy Michael McGrath asked the Minister for Finance if the National Asset Management Agency was at any stage advised of potential conflicts of interest, involving a person’s work with the agency, and this person's work outside consultancy interests (details supplied); and if he will make a statement on the matter. [28793/15]
View answerI refer the Deputy to the NAMA Chairman's opening address to the Public Accounts Committee (PAC) on 9th July 2015, which is available on the NAMA website at the following link: https://www.nama.ie/about-us/publications/speeches/
The NAMA Chairman advised the PAC that on 20 March 2014, PIMCO, one of a number of bidders for NAMA's Northern Ireland debtor loan portfolio, informed NAMA that its compliance department had discovered that PIMCO's proposed fee arrangement with its legal advisers also included a payment to a former external member of NAMA's Northern Ireland Advisory Committee (NIAC). PIMCO named that individual as Mr Frank Cushnahan. I am further advised that this was the first time NAMA became aware of this matter. Mr Cushnahan was not a member of the NIAC at the time of this disclosure having resigned from that committee in October 2013.
I am advised that the NAMA Board, at a specially convened meeting on 11 March 2014, viewed PIMCO's disclosure as a very serious development. I am further advised that, whilst the former NIAC member was no longer a member of the Committee and never had access to confidential information, the NAMA Board considered that the proposed fee arrangement could undermine the integrity of the sales process. The NAMA Board decided that if PIMCO did not withdraw, NAMA could not permit it to remain in the sales process. This was communicated to PIMCO on 12 March 2014. On 13 March 2014 PIMCO informed NAMA of its decision to withdraw from the sales process. As outlined by the NAMA Chairman at the PAC on 9th July 2015, NAMA were aware that Mr Cushnahan had the use an office in same building as Tughan's.
I am advised that NIAC members were obliged to annually declare any potential conflicts of interest to NAMA in accordance with the Ethics in Public Office Act.
