In an unprecedented move, Nama said it “categorically rejected” the report’s key conclusions, saying that Project Eagle’s €1.6 billion price tag was the best achievable result. Mr McGrath said Nama should have stopped the entire process once it became known to them that Mr Cushnahan was set to benefit financially. Responding to the report, Fianna Fáil spokesman on finance Michael McGrath said Mr Cushnahan casts a shadow over it. “Subject to the outcome of those discussions, the matter will then be the subject of a Dáil debate early in the new session.”Īn investigation by British police is already under way into the sale, and a number of arrests have been made. “It has therefore decided that the Taoiseach will invite Opposition party leaders to meet him tomorrow with a view to seeking agreement on the issues of public concern that require further investigation and the most appropriate nature and terms of reference for such an investigation. recognises that it has its own responsibilities to ensure that all matters of public concern with regard to the functions of an important public body such as Nama are fully addressed. This investigation will be independent of a separate inquiry into the sale that will be conducted by the Public Accounts Committee.Ī Government statement read: “The Government. “The understanding that Brown Rudnick and Tughans had allegedly been in an arrangement with a member of the NIAC at any stage of the process should have raised concerns for Nama about potential impacts of such arrangements on the sale process, unless convincing explanations could be produced.”ĬA&G report said the allegations of Mr Cushnahan’s involvement in an arrangement to share fees with Brown Rudnick and Tughans warranted more action by Nama when the matter came to light.Įarlier on Wednesday, the Government agreed to carry out an investigation into the Project Eagle sale after the report was discussed by the Cabinet. “The board subsequently learned of the existence of a success fee arrangement involving Cerberus, on the one hand, and Brown Rudnick and Tughans on the other. The report says: “Given the joint agreement between the parties to the success fee arrangement with Pimco, all of the payment - not just the payment to Mr Cushnahan - should have raised concerns for Nama. They were also aware the potential payment was in the amount of £15 million to £16 million, to be shared equally. It said Nama became aware of the proposed success fee arrangement involving Mr Cushnahan, Tughans and Brown Rudnick in March 2014. “The restrictions Nama implemented, relative to its standard process, reduced both the level of competition and the opportunity for potential bidders to assess the value of the portfolio. The report said Nama departed from its normal loan sale process in this sale. Two bids were received on April 1st, 2014.Ĭerberus bid £1.241 million - which was £11 million higher than the revised minimum price - and Fortress bid £1.075 million - £155 million below the revised minimum. It informed Nama and withdrew from the process.įollowing Pimco’s withdrawal, just two firms - Cerberus and Fortress - remained in the competition, and both subsequently submitted bids. The report outlines how Pimco became aware in March 2014 of a proposed success fee arrangement between Brown Rudnick, law firm Tughans and a former member of Nama’s Northern Ireland advisory committee, Frank Cushnahan. However, the agency did not seek any external expert advice on the sale and two of its valuations underestimated the value of the loans. The report found that accepting Pimco’s offer for the portfolio would have led to significant policy changes by Nama. The report said Nama did not consider the sale of the Northern Ireland assets until US law firm Brown Rudnick wrote in June 2013 offering an exclusive deal.The legal team was working on behalf of US investment firm Pimco. The Government is now to establish a formal inquiry into the sale, with the structure to be discussed at a meeting between the Taoiseach and Opposition leaders on Thursday. The report by the Republic’s finance watchdog, the Comptroller and Auditor General (C&AG), which was released on Wednesday afternoon, raises a number of concerns about the sale of the State agency’s Northern Ireland loan portfolio. A report into Nama’s sale of Project Eagle has found the agency lost £190 million (€220 million) on the deal.
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