OFFICIALS IMPLEMENTING the legislation on impaired banks are “potentially corrupt” if they accept gifts such as a bottle of wine from those with affected loans, a Dáil committee has heard.
Minister for Finance Brian Lenihansaid he did not know how low the corruption threshold would be "but an exemplary standard must be set from the start". Prevention of corruption laws will apply to the National Asset Management Agency (Nama) Bill and "to avoid doubt" a specific section is included.
The provisions will apply to an official of Nama, or an individual “who performs functions connected with the valuation of eligible bank assets”.
The provisions come into play where it is shown that the “gift or consideration or advantage shall be taken, unless the contrary is proved, to have been given and received corruptly as an inducement to or reward for the person performing or omitting to perform any of those functions”.
During the ongoing committee stage debate on the Bill, Fine Gael finance spokesman Richard Brutonsaid the section "represents a very important marker".
A “cosy relationship has developed in our regulatory system over time, which has been part of the problem that has placed us in the position in which we find ourselves. Sometimes one could have the impression that the regulators defend the banks more than they are probing and sceptical of their operations.”
He asked the Minister: “Does this mean if someone accepts a bottle of wine from a person in any way connected with any piece of land of any Nama loan that it could be seen as potentially corrupt?” Mr Lenihan replied that “it does, actually”.
Mr Bruton said: “That is fine once people are aware of it. It is important.” The Minister added that “I don’t wish to give any leeway to Nama but it would certainly cover a crate of wine. I would have to take legal advice about the bottle. However, I suspect it covers the bottle as well.”
Mr Lenihan also said he might agree to an amendment from Labour finance spokeswoman Joan Burton to “extend the prevention of corruption provisions to private interest investors in and the directors of the special purpose vehicle, because in large part it will take on many of the functions that members understood were to be the principal functions of Nama”.
The Minister said he would consult the Opposition about appointments to the board of Nama. “The process of all-party consultation, with full disclosure by me of who I have in mind, together with a full disclosure by the Opposition leaders of who they have in mind, is the best approach to this matter. We may arrive at a number of similar individuals.”
He also said he would provide for two Oireachtas members to be observers at the Nama audit committee. “Perhaps the Opposition will not agree with this. I am not forcing this amendment through; I am putting it forward as an option to be considered.”
