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Nama: What we know, and what questions remain unanswered

How The Irish News has covered the Nama scandal in the past week
How The Irish News has covered the Nama scandal in the past week How The Irish News has covered the Nama scandal in the past week

FOR many people in Northern Ireland the operations of Nama have so far been of little concern.

Nearly six years ago the National Asset Management Agency (Nama) was established to clear huge property loans from banks bailed out in the Republic's economic crash.

Since then the state's 'bad bank' has been the focus of intense debate in the south, but its activities have failed to garner much interest in Northern Ireland.

That all changed last week with the sensational claims made under Dáil privilege by independent TD Mick Wallace.

His sensational claim that a northern politician was set to personally benefit from the property deal, has rocketed Nama across the border and into the north's general consciousness.

At times it has felt like a whole new lexicon has emerged overnight. Nama, Cerberus, Tughans, Pimco, Brown Rudnick – all once alien but now familiar in the pages of news digest.

Nama put the 850 properties in its northern portfolio - dubbed 'Project Eagle', on the market for about a third of the £4.5bn that developers, investors and speculators originally borrowed.

It sold the assets in April last year to New York firm Cerberus Capital Management for £1.3bn – the biggest ever property deal in Northern Ireland's history.

Cerberus paid legal fees to US firm Brown Rudnick, which said it chose to share those fees with Belfast law firm Tughans.

But concerns over the deal emerged on Thursday last week after Mr Wallace claimed in the Dáil that a routine audit at Tughans "showed that £7m ended up in an Isle of Man bank account".

The Wexford TD said the money was "reportedly earmarked for a Northern Ireland politician" or political party.

The shock allegation prompted a response from Tughans. It said professional fees due to the firm were diverted without its knowledge to an account controlled by former managing partner, Ian Coulter.

Tughans said the fees were retrieved and Mr Coulter left the practice in January. Tughans informed the Law Society which launched an investigation.

So why would money be diverted into an offshore account? It has since been claimed that the £7m was intended to facilitate payments to non-lawyers or 'fixers' involved in the Nama loan deal.

The sensational disclosures have prompted an inquiry by the Republic's public accounts committee, Stormont's finance committee, and a criminal probe led by the UK National Crime Agency.

It has led to scrutiny of the Law Society, which for days refused to comment and has failed to explain why it did not inform the PSNI.

Law Society officials are to attend Stormont's finance committee on Thursday.

PSNI commanders also came under pressure to act and took days to launch an investigation despite increasing concerns over the allegations.

But the claims have also shone the spotlight on events before Cerberus finalised the deal, in particular an abandoned Nama loan book bid from investment firm Pimco.

In March last year Pimco did not proceed with a deal after expressing concerns with Nama over proposed fee arrangements involving Frank Cushnahan.

Mr Cushnahan was a member of the Nama Northern Ireland advisory committee. He had left his role just months before the Pimco bid.

Nama's Frank Daly caused visible astonishment from TDs when he told an Oireachtas committee earlier this week that Pimco claimed Mr Cushnahan was to pocket £5m from the deal.

He said the former Nama adviser was set to share in a three-way split of £15m with US law firm Brown Rudnick and Ian Coulter.

During the course of the past week questions have also been raised over political engagement with the Nama deal.

It is understood at least one informal meeting with Pimco was held at Stormont that involved Mr Cushnahan, then Tughans managing partner Ian Coulter, and a senior politician.

First Minister Mr Robinson confirmed he met Pimco when it considered buying the Nama portfolio.

The DUP leader, party colleague Simon Hamilton and Mr Coulter also met with Cerberus chairman and former US Vice President Dan Quayle.

Sinn Féin Deputy First Minister Martin McGuinness said he was unaware of the meeting.

Cerberus confirmed the meeting at Stormont Castle took place in March last year, just days before its Nama property portfolio deal was finalised.

Former finance minister Mr Hamilton did not disclose details of the meeting when questioned in the assembly by TUV leader Jim Allister last year.

However, he confirmed in response to a later question from Sinn Féin's Ian Milne that he met with "representatives of Cerberus to discuss their operations in Northern Ireland".

"My officials continue to liaise with the company on a regular basis," he said.

The purpose of these meetings, and who knew about them, remains largely unclear. Some MLAs have called for further clarification.

Nama and all private firms involved in the assets sale have denied wrongdoing.

Ian Coulter has not commented on the controversy. Frank Cushnahan's solicitor said his client "firmly denies any wrongdoing and will fully co-operate with any police investigation".

Peter Robinson has unequivocally denied that he received or was due to receive any proceeds related to the Nama loan sale.

It is not known how long the National Crime Agency-led investigation could take.

However, its operations could lead to the Stormont finance committee probe being delayed.

Sinn Féin finance committee chair Daithí McKay is due to seek legal advice on the matter once he has received correspondence from the NCA.