Committee of Public Accounts to examine 2022 Financial Statements of National Asset Management Agency and C&AG Special Report 116 on NAMA

The meeting at 9.30am will be joined by the Comptroller and Auditor General, Seamus McCarthy, and representatives from NAMA led by the CEO, Brendan McDonough, who is the Accounting Officer and is accountable to the Committee of Public Accounts.

The Committee will also examine the C&AG Special Report 116 - National Asset Management Agency - Progress on achievement of objectives as at end 2021.

During the afternoon session, beginning at 1.30pm, the Committee will consider the minutes of recent meetings, correspondence and other business of the Committee.

PAC Cathaoirleach Deputy Brian Stanley said: “The National Asset Management Agency was established in December 2009 following the banking crisis in 2008. NAMA acquired property related loans from the commercial banks with the aim of holding and managing these loans and related collateral and ultimately disposing of these assets in a manner to protect the State’s interest.

“NAMA paid €31.8 billion to acquire property related loans from five financial Institutions, funded through the issue of debt. Through loan and asset sales, the value of NAMA debtor loan balances has reduced from €28 billion at the end of 2010 to €715 million at the end 2021. NAMA set targets for debt redemption, which it has met and exceeded, with all debt fully redeemed by March 2020.

“NAMA recorded a profit of €81m at the end of 2022, with a loan balance of €527m. At the end of 2022, NAMA returned €500m to the Exchequer and now has a project lifetime surplus of €4.5 billion. In line with EU Commission approval, NAMA aims to conclude its work no later than end of December 2025 and is currently taking a number of steps to implement this wind down.

“The C&AG’s Special Report 116 highlights that during the audit of the Financial Statements 2021, it was noted that NAMA had finalised the sale of loans relating to two companies, with a par value of €10.46 million for consideration of €265,000, a 97.5 per cent discount on the amount of debt legally owed by the borrower. These loans had not been openly marketed prior to the sale, as normally required under NAMA’s loan sale policy.

“The Committee welcomes this latest engagement with NAMA to examine the issues raised in this report, including this sale in what were referred to as ‘exceptional circumstances’. Other areas of interest for the Committee include the rate of return received on loans, NAMA’s involvement in the development of commercial and social housing, management of commercial property, and the wind down of NAMA. Members look forward to examining these and related matters with Mr McDonough and his colleagues.”

The meeting in Committee Room 3 can be viewed live on Oireachtas TV.

PAC is a standing committee of Dáil Éireann which focuses on ensuring public services are run efficiently and achieve value for money. Further information on the role and remit of the Committee can be found here.

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