Section 172(3) of the National Asset Management Agency Act 2009 is a legal provision which prohibits the sale of assets held as security for NAMA loans to debtors who have defaulted on those loans or persons acting on behalf of defaulting debtors.
To ensure compliance with this section, I am advised that NAMA has a policy of obtaining written confirmation from purchasers of NAMA-secured assets which confirms that, among other things, the purchaser is not a party precluded from completing the purchase by virtue of section 172(3). Under section 7(2) of the NAMA Act, any person who intentionally, recklessly or through gross negligence provides false or inaccurate information to NAMA commits a crime. In addition, under section 6 of the Statutory Declarations Act 1938, it is a criminal offence for a declarant to make a declaration which is false or misleading.
I am informed by NAMA that two complaints have been brought to their attention and that both these complaints have led to investigations into potential breaches of Section 172(3) of the NAMA Act 2009. In relation to one of these alleged breaches, I am advised that NAMA has concluded its investigations and is satisfied that no breach has occurred. I am advised that NAMA is aware that An Garda Síochána is separately investigating the other alleged breach. Criminal investigations are a matter for An Garda Síochána and the DPP and to date, their investigations have not resulted in a prosecution.