Northern Ireland

Nama probe: Belfast businessman to appear at committee

The assembly's finance committee yesterday
The assembly's finance committee yesterday The assembly's finance committee yesterday

A BUSINESSMAN taking legal action against a US firm that bought Nama's northern portfolio will be invited to speak at a Stormont inquiry into the scandal-hit property deal.

Nama sold its northern loan book to US investment firm Cerberus last year for £1.3bn – the biggest ever property deal in Northern Ireland's history.

A criminal investigation led by the British National Crime Agency and committee probes on both sides of the border have been launched following allegations over the Nama purchase.

Independent TD Mick Wallace claimed in the Dáil in July that a £7m offshore account linked to the deal was earmarked for a northern politician or political party.

The huge portfolio included loans to property firms run by Gareth Graham, the son of bookmaker Sean Graham.

Stormont's finance committee today discussed whether to hear evidence from Mr Graham after receiving correspondence through his solicitor offering to appear before its inquiry.

Assembly members agreed to invite Mr Graham to a committee meeting scheduled for Thursday.

However, the committee will take legal advice beforehand to decide whether to call upon the Belfast businessman.

Some committee members expressed concern over prejudicing the case between Mr Graham and Cerberus.

But Sinn Féin's Daithí McKay, chair of the finance committee, warned about delays in the committee's probe.

"We have had a lot of difficulty in getting witnesses before this committee and so it is welcome to have someone coming forward," he said.

The North Antrim MLA added: "We have had a summer of taking legal advice. I think the public and some of the media are looking at our committee and saying there is very little output.

"I propose that we send a letter to Mr Graham outlining strongly our terms of reference that he must stay within.

"I'm not going to go through another week of delay – we need to see some output from this committee."

Cerberus has already put two of Mr Graham's companies into administration and is attempting to do the same with another two.

His legal action, thought to be the first Cerberus has faced since its operations in Northern Ireland began, is being made on grounds including the validity of loan guarantees.

At least one of the Mr Graham's property firms once had on its board former Nama Northern Ireland advisory committee member Frank Cushnahan.

He was recommended for the advisory role in 2010 by former DUP finance minister Sammy Wilson.

In July Nama prompted astonishment from TDs when officials told a Dáil committee that Mr Cushnahan was set to pocket £5m over the northern loan book sale.

In a letter to the finance committee, Mr Graham's solicitor said his client's "circumstances and the background to his current dispute with Cerberus will inform your inquiry".

"Our client’s companies have been directly impacted by the decision to appoint members to the Nama Northern Ireland advisory committee and we believe that the lack of accountability between those members and the Department of Finance and Personnel has led directly to his current dispute with Cerberus," it reads.

"Mr Graham’s evidence will assist your fact-finding review in relation to the operations of Nama in Northern Ireland."

Nama (National Asset Management Agency) is the 'bad bank' set up by the Republic to clear property loans from bailed out lenders.

Last month the committee agreed to hear from leading loyalist Jamie Bryson.

The Law Society last week said it could not give "substantive evidence" to the committee due to legal constraints.

It has been investigating since January the circumstances surrounding solicitor Ian Coulter's resignation from Belfast law firm Tughans, which worked on the Nama deal.

The law firm said it contacted the society after professional fees were discovered in an offshore account controlled by Mr Coulter.

Nama and all private firms involved in the assets sale have also denied wrongdoing. Mr Coulter and Mr Cushnahan have also denied wrongdoing.