PSNI probe into €1.5bn Nama deal allegations sparks call for inquiry

A police probe into allegations that the €1.5bn sale of Nama’s Northern property portfolio was connected to a major political pay-off has intensified calls for a top level investigation into the Government agency’s deal south of the border.

As controversy surrounding the massive land deal with a US investment firm intensified, the PSNI moved to launch a criminal inquiry into claims which emerged in the Dáil regarding an off-shore account in the Isle of Man containing €9.8m.

Northern police acted after Independent TD Mick Wallace told the Dáil that the millions in the account were “reportedly earmarked for a Northern Ireland politician or political party”.

The police intervention saw Fianna Fáil leader Micheál Martin step-up his campaign for a commission of inquiry to be set-up to probe Nama’s Northern deal after accusing the Government of falling back on a policy of “defensive denials”.

“Now that the PSNI judges the allegations worthy of a criminal investigation, my hope would be that the Government will understand that the concerns of Irish citizens are real, will revisit its decision and will move to establish a proper and robust inquiry with the power of compellability. Further delay and indecision will serve only to undermine public confidence in an agency entrusted with very significant public resources,” Mr Martin said.

Assistant Chief Constable Will Kerr, who is head of crime operations at the PSNI, said the investigation was into possible criminal activity. “We believe that there is sufficient concern in relation to potential criminal activity, surrounding this property deal, to instigate an investigation.

“PSNI are now engaging with a number of other national and international law enforcement partners to consider how best to take forward this investigation.”

Nama and all private firms involved in the sale of the Northern assets have denied any wrongdoing.

Mr Wallace’s allegations related to the role one of the North’s major law firms, Tughans, played in the deal.

The Wexford TD claimed the cash in the offshore account was discovered during a routine internal audit by the Belfast solicitors following their work for the US buyers, a private equity firm Cerberus. Senior partners at Tughans said the money was diverted without their knowledge and has since been retrieved.

Nama chairman Frank Daly and chief executive Brendan McDonagh are to be questioned by the Dáil’s Public Accounts Committee today.

PAC chairman John McGuinness said: “We will be seeking assurances from Nama officials that the return to the taxpayer was maximised in the sale of these assets. The committee will want to get an understanding of how the process worked and whether this was the optimum business approach to achieving the best possible sale price.”