Developers get ‘salaries’ of €200k from NAMA

TWO property developers are effectively receiving annual salaries of €200,000 from NAMA, the Public Accounts Committee heard yesterday.

The identities of the two developers have not been disclosed by NAMA, but both are understood to be managing multi-billion euro property portfolios. In total, NAMA is paying ‘salaries’ to between 110 and 120 developers, with the majority receiving between €70,000 and €110,000 per year.

NAMA chief executive Brendan McDonagh told the committee meeting that the agency is not paying developers directly, but is allowing them an allocation from rental income they generate from their NAMA-based properties.

The agency’s chairman, Frank Daly, said that it was a commercial decision to pay developers who co-operated with the agency; but added he understood the criticism of some members of the committee. Mr Daly, former chair of the Revenue Commissioners, said that payments to developers will be made on a case-by-case basis and said that it remained NAMA’s job to get the best possible result for taxpayers.

“If that means taking some unpalatable decisions, then we have to make them,” he added.

He said that, while an unpopular move, the agency doesn’t envisage any portfolio resulting in a big payday for developers.

However, the issue of developers being paid annual salaries — particularly the two €200,000 figures — was described as “staggering” by Cork Labour TD Michael McCarthy.

“NAMA was created as a result of the mismanagement of the economy. It has now been revealed that there are two developers being paid almost as much money as the Taoiseach. This brings the whole process into disrepute and, as we approach a very difficult budget, the question needs to be asked as to how we can expect the public to have any faith in a system that generously rewards developers to this extent,” Mr McCarthy said. “It is also convenient that these individuals are just below the salary cap introduced recently by the Minister for Public Expenditure and Reform Brendan Howlin. Were it not for the cap, it is reasonable to assume that these people would be earning even more.”