MINISTER FOR Finance Brian Lenihan has called on a Government backbencher to provide information about his claims that property developers were buying back their bad debt from the National Asset Management Agency at discounts of up to 75 per cent.
Fianna Fáil Senator Mark Daly also claimed Nama had failed to follow its code of conduct in selling properties under its control.
The Kerry-based auctioneer accused other estate agents of costing the exchequer millions of euro through “fire sales” at “bargain prices” when they were supposed to obtain maximum prices.
He was speaking during the weekend Seanad debate on the Finance Bill. Mr Daly had previously raised the issue and Mr Lenihan asked him to provide him with the details of his claims.
The Minister said: “You’re under privilege in this House but you should give whatever information you have.”
Mr Daly said: “As I am not a member of the gardaí, I can’t. When I have information of wrongdoing I will put it before anybody.”
The Minister said: “You have not suggested wrongdoing. You have suggested bad commercial practices.”
Mr Daly had told the House that people were “buying back their own debt for 50 per cent less or for 75 per cent less”, knowing that “the valuation was undervalued”.
He said that “in the case I came across, the original loan was €12 million. The haircut was €6 million and the actual value of the property was €9 million.”
He claimed the developer “arranged for a buddy to buy the property at €6 million and turned around and sold it for €9 million”.
He accused Nama of not following its code of conduct. “They’re saying they don’t have to and transparency in this matter is the key factor,” he said.
The Government rejected a recommendation by Fine Gael Senator Eugene Regan in relation to tax deadline changes for the self-employed. Mr Regan said that in moving the pay-and-file deadline to October 31st the Department omitted to bring the deadline for capital acquisitions tax in line.
Minister of State Michael Finneran said this related to “capital acquisitions, inheritance and gift tax, not the self-employed and small companies”.