Nama set to spend €25m on legal fees

Michael Noonan, the finance minister, has confirmed Nama will this year spend €25m on legal fees alone.

However, the minister said Nama’s projected costs for the year will be 20% lower than originally estimated.

Nama’s annual statement for 2011 projected its costs for 2012 would be in the region of €242m.

However, in a written Dáil response, Mr Noonan stated a more detailed review of Nama’s 2012 spend was carried out in December and January.

He said: “Taking this information into account, it is projected that annual costs in 2012 will be €194m.”

In response to a Dáil question by Gerry Adams, Mr Noonan said: “I am advised by Nama that most of the difference is explained by the agency’s review of projected insolvency costs which are now expected to be substantially less than originally expected.

He said that the agency’s recovery/ insolvency costs for the year will be €33m with primary servicer/ master servicer fees at €75m.

The finance minister said reimbursement fees to the National Treasury Management Agency will total €44m as a service provider.

He said Nama’s miscellaneous costs for 2012 will total €13m with an additional €2m to be spent on IT costs.

In response to a second Dáil question from Mr Adams, Mr Noonan confirmed the board of Nama has given its approval “to the establishment of dedicated teams”.

He said these teams “will monitor and supervise intensively the management of the 600 Nama debtors which are currently being managed by Bank of Ireland, AIB and the Irish Bank Resolution Corporation on Nama’s behalf”.

Mr Noonan said: “The teams concerned will be situated within the institutions and will ensure that the highest standards are applied by the institutions to the management of the €5bn of Nama debt which is involved.”

Last week, Mr Noonan confirmed that 12 employees of the NTMA earn more than €250,000 per annum.

He confirmed that a further four employees of the NTMA — which provides a range of financial and risk management services to the Government — earn between €200,000 and €250,000 per annum.

The revelation of the 16 employees earning in excess of €200,000 comes in spite of Mr Noonan asking the NTMA to apply the €200,000 public sector pay cap to its staff.

Mr Noonan confirmed that a further 29 NTMA staff earn between €150,001 to €200,000 with 96 earning between €100,001 to €150,000 with 306 earning up to €100,000.


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