Nama private sale of assets ‘stinks’

The practice of Nama privately selling assets without putting them on the open market “stinks”, according to Fianna Fáil finance spokesman Michael McGrath.

He urged Finance Minister Michael Noonan to end the practice and carry out a “root-and-branch” investigation of procedures at the state agency, which Fianna Fáil established.

Mr McGrath made the comments in the Dáil when raising the case of a former Nama executive now under investigation by gardaí. Enda Farrell purchased a five-bedroomed house from the agency’s portfolio in a private deal without the property being placed on the open market.

When the revelation emerged in August, Nama appointed its internal auditors, Deloitte, to investigate.

Deloitte found Mr Farrell had not disclosed the transaction to Nama either before or after the sale. It also found that Mr Farrell may have taken confidential data from Nama without authorisation.

The gardaí are investigating the latter, and Nama has instituted legal proceedings against Mr Farrell and his wife.

Mr McGrath said the case “should have set the alarm bells ringing” in Nama and the Department of Finance. He queried how information of such a commercially sensitive nature could have been compromised.

He also said Nama’s initial response in appointing its internal auditor to investigate was “entirely inadequate”, and that the matter should have been referred to the gardaí immediately.

Mr McGrath said it was imperative the Government found out where the information ended up, given the potential consequences for taxpayers.

He urged Mr Noonan to carry out an independent review of the case, as well as a comprehensive investigation of Nama’s wider governance and controls.

However, Mr Noonan defended Nama, saying it had acted swiftly. It had learned of the transaction involving Mr Farrell on Aug 2 and appointed Deloitte the next day, he said.

That probe uncovered an unauthorised disclosure of information, which was notified to the gardaí and Data Protection Commissioner.

He said the agency employed “a wide range” of measures to prevent unauthorised disclosure of confidential data, and that Nama staff were bound by law not to disclose such data.

“I take comfort in the fact that as part of its review of Deloitte’s findings, the board of Nama will assess whether there are any changes required to Nama’s current data control and compliance procedures.”