NAMA law firm link to bankrupt builders

TWO partners in a law firm appointed to provide legal services to NAMA are also directors of a construction company that is now in receivership and which owes as much as €200 million to Anglo Irish Bank.

Anglo has appointed a receiver to the Fordmount Group, two of whose directors, Michael Sherry and Adrian Frawley, are partners in Dermot G O’Donovan & Partners in Limerick.

Fordmount was responsible for huge developments in Limerick, including the Riverpoint development and the Savoy Hotel.

Limerick builder, Seoirse Clancy, whose company is owed up to €1m by Fordmount, yesterday challenged the appointment of the firm as solicitors to NAMA given that two of its partners are directors of a company that is reported to owe Anglo.

Mr Clancy, 57, said he believed a conflict of interest existed between the solicitors and NAMA. “The legal firm now has been appointed to the NAMA panel and its duty will be to collect and chase money from companies like Fordmount. That is where the conflict of interest comes in.”

The issue emerged when he spoke on the RTÉ Liveline programme yesterday.

In a statement to the show, Dermot G O’Donovan solicitors confirmed that two of its partners are directors of Fordmount.

The firm said, with the consent and co-operation of Anglo, they became centrally involved in running Fordmount on the resignation of its chief executive. They have continued to assist the receiver, the firm said.

“Dermot G O’Donovan solicitors tendered for and was appointed to the NAMA panel. All relevant information was given in the tender process, with due emphasis on the potential conflict of interests section. And we are satisfied there will be absolutely no conflict of interest in any work undertaken on behalf on NAMA.”

Although not wishing to comment on individual cases, the Opposition last night warned that NAMA had to avoid conflicts of interest.

“NAMA has to be very careful to ensure there are no conflicts of interest arising in their selection of service providers,” Fine Gael’s Richard Bruton said.

The Department of Finance refused to comment on the individual case, but a statement said: “Section 45 of the NAMA Act states: ‘NAMA shall seek to ensure that each expert adviser or service provider… makes every effort to avoid or manage conflicts of interest and to declare any such conflict (actual or potential) to NAMA’.

“NAMA has 65 firms on the panel for the provision of legal services in connection with the acquisition of bank assets by NAMA. The selection of such a high number of service providers was to ensure conflicts of interest would not occur.”