Recordings of private telephone conversations made by one of Nama’s former Northern Ireland advisers reveal an “ingrained culture of inappropriate and quite possibly illegal business conduct which stretches across political, legal, banking and accountancy sectors”, a Belfast businessman told the Stormont inquiry investigating the sale of the agency’s assets in the North.
Gareth Graham, who is involved in a legal battle with Cerberus – the American investment company that bought Nama’s Northern Ireland portfolio – told the committee yesterday he was legally in possession of recordings that Nama adviser Frank Cushnahan had made between 2005 and 2008.
Family business
During that time Mr Cushnahan was involved with both Mr Graham’s family business – the bookmaker chain Sean P Graham – and his own property companies and worked out of their offices 2-3 times a week. He was appointed chairman of the family business and received a 5 per cent shareholding.
Mr Graham said the relationship between Mr Cushnahan and his family broke down in 2008, two years before Mr Cushnahan’s appointment to Nama’s Northern Ireland Advisory Committee (NIAC).
Mr Graham said this was because Mr Cushnahan wanted to sell the business, against the wishes of his family, and they had parted ways.
He said it was not until he listened to telephone recordings from 2008 that he realised Mr Cushnahan was intent on destroying the business after he left. (Bookmakers routinely record telephone calls, he said)
He did not disclose the identities of the people Mr Cushnahan spoke to on the recordings, but he shared one conversation with the inquiry which he said showed Mr Cushnahan’s “malevolent influence”.
The conversation was recorded on October 4th, 2008. In it Mr Cushnahan referred to Mr Graham’s mother. “I am doing hundreds of deals, I have got multimillions any way, if she thinks I’m going to get wound up over 5 per cent. If I walked off the park, I would do so much damage behind the scenes. You know what the shares would be worth? F*** all. By the way if it becomes 5 per cent of nothing, I don’t give a f***. It doesn’t matter to me.”
Testimony
Mr Graham said he brought his testimony to the inquiry to highlight how his companies “had been directly impacted by the decision to appoint members to the NIAC”, Mr Cushnahan in particular. He said four companies were at the heart of the issue. “They are Lehill Properties Ltd, of which I own 95 per cent, with Frank Cushnahan owning the remaining 5 per cent, and its subsidiaries: AD Enterprises Ltd, Fernhill Properties Ltd and STH 500.”
He said Mr Cushnahan’s appointment and “the subsequent lack of accountability or oversight of his work by the Department of Finance and Personnel led, in my view, to our being in Nama and thereafter Cerberus and our current legal battles”.
He also told the committee Mr Cushnahan kept his shareholding in the property firms, which he claimed was contrary to Nama rules, as he had a potential interest in a firm that was in the Nama portfolio.
