Public Accounts Committee welcomes publication of Report by C&AG into NAMA

The C&AG Report published today deals with the first two years of operation of NAMA with the focus in the first year on acquiring the loans from the banks. NAMA paid €32 billion for these loans which had a face value of €74billion.

The report published by the C&AG examines the ongoing management of the relationship between NAMA and the borrower and the outcome of its debt management initiatives.The major challenge for NAMA is to be able to generate enough income to recover the investment made by the State.

Chairman of the Committee John McGuinness TD  outlined that the current report will provide an opportunity for NAMA to demonstrate how the project is working.

Deputy McGuinness said: “We will need to see how developers are working with NAMA to complete projects which will enhance their value; how NAMA can ensure that rents on properties are being remitted in full to service the loans; how developers who tried to hide properties are being pursued and what level of success has NAMA had in getting extra securities for loans. The Report estimates that €500 million extra could be available.
 
I welcome the decision by NAMA to invest €2.6 billion in working capital that will complete projects. With the banks not lending, the decision by NAMA will ensure that viable projects will be completed and it will give a welcome boost to the construction industry which remains on its knees.

The Committee will also want to look at how much is being taken out of the system by professionals such as receivers and the legal profession. The question I have is whether it is paying NAMA in the long run to appoint receivers and are receivers getting an adequate return for the properties that are being sold?

Finally the issue of the remittance of rental income is a concern and the Committee will want to know how the banks which are managing a portfolio of loans for NAMA are faring and whether they have similar systems in place to ensure maximum remittance of rental income.
The NAMA project is a long term one which may last until 2020 and this Report by the C&AG gives an indication as to how the project is evolving. The Committee of Public Accounts will be looking for levels of assurance that the project remains on target when it examines the NAMA Report at its meeting on 5th July, 2012.”

ENDS

For further information please contact:
Ciaran Brennan,
Houses of the Oireachtas,
Communications Unit,
Leinster House,
Dublin 2

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Committee Membership

John McGuinness (Chairman)
Kieran O’Donnell (Vice Chairman)
Paul J Connaughton,
John Deasy,
Paschal Donohoe,
Gerald Nash,
Simon Harris,
Michael McCarthy,
Mary Lou McDonald,
Sean Fleming,
Eoghan Murphy,
Derek Nolan,
Shane Ross