Miriam Lord: Mick is pecking away at Nama’s cagey dealings

Mick Wallace wanted to do the Taoiseach a favour.

It had to do with vultures. And the way they might peck at you.

But Enda wasn’t particularly bothered.

Perhaps he should have been, because Mick had some worrying things to say.

The Independent TD for Wexford warned the Taoiseach that he might come in for a very nasty going over in the next government if he doesn't look now at how Nama has conducted the sale of certain assets.

Never mind pigeons coming home to roost. Wallace was more concerned about vultures coming home “to haunt” the Taoiseach. (On the plus side for Enda, Mick clearly thinks he’ll still be in charge after the general election.)

Actually, has anybody in Dublin Zoo thought to check the bird house?

There mustn't be a vulture left in the place, judging by the terrible orgy of carrion commerce happening at Clerys and those swooping property scavengers feeding off Nama.

Mick began his contribution at Leaders' Questions with a reference to Denis O'Brien, who is currently before the courts raising matters to do with the recent airing of his banking unmentionables in the Oireachtas.

“Last week, we discussed the terms of reference for an inquiry into the State’s alleged preferential treatment of private sector investors in general, and our good friend, Denis O’Brien, in particular,” he began, as people wondered what little gobbet (or should that be dobbet) of O’Brien-related information he was going to drop, under absolute privilege, on to the Dáil record.

Wider questions

“That someone as rich and powerful as Denis O’Brien, who has unfettered control of much of the mainstream media, might get preferential treatment is not much of a shock to many,” continued Mick, who was only using the billionaire businessman to tee up a wider question.

Wallace declared he doesn’t think the much-mentioned Denis “is the only powerful individual or consortium who may have got favourable treatment from State-owned institutions”.

In fact, his question wasn’t really about O’Brien at all, but some deputies are still enjoying the luxury of mentioning his name in Dáil dispatches. Because they can, your honour.

No. This time we weren’t talking about alleged dealings at the defunct bank formerly known as Anglo. This time it was goings-on at Nama.

Wallace explained that, to the best of his knowledge, Nama had planned not to go mad and flood the market with post-tiger distressed assets. This is because the agency was something called “a special purpose vehicle” and it would bide its time until there were signs of recovery, thus getting a better return for the taxpayer.

“That is not what happened,” Wallace told the Taoiseach.

‘Strange reason’

Call him a conspiracy theorist, but Mick wanted to know why Nama “for some strange reason” was in a “hurry to fire sale assets for less than their real value” despite the fact that it was a rising market.

The purchasers swooped in, bought, and then flipped their properties for eyewatering sums.

“It’s frightening how quickly these vulture funds turned them over and the extent of the profits involved. This means that foreign vulture funds have won and the Irish people are losing out.”

Mick was doing well up to this point. He certainly had us worried.

Then he went and ruined everything by mentioning the “C” word.

You see, he reckons something has gone wrong with how Nama has been operated. And he reminded Enda of how, before he became Taoiseach, he called Nama “a secret society” and it needed an injection of openness and competence.

Never happened.

“You were dead right,” said Mick.

But nothing has changed.

Wallace has already mentioned a few unusual deals at previous Dáil sittings. He’s highly suspicious of some of them and believes, “sadly, the drip feed of questionable deals” is already beginning.

The thing is: is Enda going to do anything about the situation?

“It may come back to haunt you in years to come,” he cautioned.

And then the question which drew a short, sharp, shocked intake of breath on all sides.

‘Crescendo’

“Will the Taoiseach wait for this to reach a crescendo before he acts or is he prepared to commission an independent inquiry into how Nama has worked and to check whether the Irish people get the maximum return in respect of how the assets were sold by this organisation?”

Oh no, Mick. Not another commission of inquiry.

The retired judges of Ireland are afraid to leave their homes or answer their telephones these days. They live fear having seen so many innocent colleagues press-ganged into inquiries and scoping exercises which might go on forever.

Enda is not afraid of the vultures coming to attack him in the dead of night. His Government didn’t even set up Nama, so what’s it got to do with him.

Furthermore, the Comptroller and Auditor General is keeping a beady eye on its works, and in a belt and braces exercise, the Public Accounts Committee regularly grills people from Nama.

If Mick has concerns, he should take them to PAC chairman John McGuinness.

“It’s interesting that you put the onus back on me,” noted Wallace, before giving two examples of what he meant.

Sold on

The first, an office on Mount Street – sold by Nama to US fund Northwood in 2012 for €27 million off market and sold on two years later by the same consortium for €42 million.

He then talked about the Forum building in the IFSC, sold to US private equity firm Atlas Capital in 2012 for €28 million. Less than two years later, it was sold for €37.8 million – a 35 per cent profit.

“If the Taoiseach thinks this is good business, I think otherwise.”

Then, just to make everyone wonder a little more, he added: “These are just two of the smaller examples.”

The Taoiseach reiterated the independence of Nama and the presence of a good oversight mechanism.

“I’m not throwing the onus back on you,” he told Mick. “I’m quite sure the chairman of the PAC will take note of what you’ve said here.”

Wallace has done all he can to warn Enda.

He’s been proven right on a few issues during this Dáil.

Will Nama feeding the property-flipping vultures be another?