| Senator Mark Daly Raises NAMA's Code of Conduct Regarding Sale of Assets with Minister for Finance |
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Senator Mark Daly Raises NAMA's Code of Conduct Regarding Sale of Assets with Minister for Finance Finance Bill 2011 [Certified Money Bill]: Committee Stage (Resumed) Saturday, 29 January 2011 I raised a related point during the week that NAMA was not following the legislative provisions in the selling of properties under its control. It is not even following the code of conduct for State bodies. When it comes to the sale of section 23 properties and other properties by liquidators, we need transparency. Legislation provides for that but NAMA, in the case of numerous properties being sold on its behalf by the banks, is not following the provisions laid down. People have come to me disgusted that the guys who had borrowed the money originally are buying back their own debt for 50% or 75% less, knowing well that the properties were undervalued. I will speak against my profession in this regard. The valuers undervalued the property initially, because most of their valuations were desktop valuations. They undervalued it and the banks took a haircut of 40%. In the case I came across the original loan was €12 million and the haircut was €6 million, while the actual value of the property was €9 million. The developer went back and arranged for a buddy to buy the property at the haircut price of €6 million and sold it on for €9 million, costing the taxpayer. An Cathaoirleach: We will be debating this until 12.30 with the way Senators are making speeches. Minister for Finance (Deputy Brian Lenihan): The Senator should supply the details of that transaction to NAMA. Senator Mark Daly: I will. Deputy Brian Lenihan: The Senator has not done so to date. Senator Mark Daly: I have not. I am not an investigator, but NAMA is not following the code of conduct. It says it does do not have to. Transparency is the key factor in this matter, but NAMA is not following the code of conduct. Deputy Brian Lenihan: The Senator is under privilege in this House, but he should provide whatever information he has. Senators: Hear, hear. Senator David Norris: The Senator is a public representative. He should name and shame. Senator Jerry Buttimer: The Senator should give the Minister the information. Senator Mark Daly: As I am not a member of the Garda, I cannot do that. When I have information of wrongdoing, I will put it before somebody. Deputy Brian Lenihan: The Senator has not suggested wrongdoing, just bad commercial practice. An Cathaoirleach: We are on recommendation No. 1. The Senator has made his point well. Senator Mark Daly: NAMA has turned around and said it does not have to follow the code of conduct for the sale of State assets. I maintain these are State assets because we provided the money. NAMA owes us the money. I do not care whether NAMA follows the code or not, but there is no transparency and there are bad practices going on. I do not want to be doing a post mortem here in a year’s time when it has cost the taxpayer hundreds of millions of euro. Deputy Brian Lenihan: We would all agree with that, so please give me the information.
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