Nama official told firm ‘way could be found for deal’

A senior Nama official told US firm Pimco — the original bidder for the Northern Irish loan book — that some other way could be found to stay in the process, despite the emergence of controversial “fixer” fees.

Nama executive Ronnie Hanna played a key role in forcing Pimco out of the Project Eagle bidding race — after details of a £15m “success fee” emerged.

At a meeting of the Dáil’s Public Accounts Committee (PAC), emails and board minutes relating to Pimco’s exit from the process were discussed.

The documents, seen by the Irish Examiner, show that in contemporaneous minutes of a Nama telephone call with Pimco, on March 11, 2014, discussions took place about how a fee could be paid in an alternative way which could see them stay in the process.

On the call for Pimco were Tom Rice, European legal counsel; and Hugh Mildred, legal counsel; and for Nama were Ronnie Hanna and legal advisor Alan Stewart.

During the call Mr Rice said Pimco was disappointed that disclosures were not made by the relevant parties to Nama. The Nama officials asked when Pimco had become aware of the issue.

Mr Rice said the [Project Eagle] process had been with Nama for several months. He said this development went back to the origination of the deal with Pimco and the proposal for an acquisition fee, according to the documents.

Mr Rice added that the proposed fixer fee split was mentioned some time ago and enquiries were made and it was looked at in more detail in the second half of 2013. Reference was made to a draft letter of engagement. Once the amount was queried it became evident the payment was to be split three ways and clarification was sought from the firms afterwards, the documents show.

Mr Rice said they “did not want to continue in a process with any degree of impropriety for Pimco or Nama and that Pimco was willing to withdraw completely”. Mr Hanna asked whether Pimco considered other options. “TR asked what options and RH asked if it could be shaped differently for the arrangement fee to come out,” the minutes show.

Mr Rice said if there was participation with any partners where there has been an issue [for Nama] then Pimco just would not want look at progressing. Mr Hanna explained that the point was more to do with Frank Cushnahan, the Nama advisor at the heart of the controversy. The conversation referred to the process as it stood and said Pimco was willing to withdraw.

Pimco were not forced out of process of Nama’s sale of its northern loan book, the agency has said.

The admission given at the Public Accounts Committee (PAC) appears to “be at odds” with previous testimony given at the committee by senior Nama executives.

Project Eagle was the name given to more than 900 loans secured on properties in Northern Ireland, Britain and the Republic, which Nama sold in April 2014 to US firm Cerberus for £1.3bn.