23 developers claim €100k salaries despite being in Nama over debt

At least 23 developers put into Nama because of their part in the economic crash are still receiving salaries of €100,000 a year.

Nama chairman Frank Daly confirmed the salaries during a meeting in which the group’s chief executive, Brendan McDonagh, said that, “regardless of the scale of housing shortfall in Ireland”, Nama cannot fund housing projects that are “not commercially viable”.

Speaking during a lengthy Public Accounts Committee meeting, Mr Daly was asked by Independent TD Catherine Connolly about the ongoing salaries given to developers placed into Nama because of their debt.

After initially saying there was a “range” of salaries, Mr Daly was forced by Ms Connolly to confirm that 23 people “currently receive a salary with an average of €100,000 a head” and some developers receive as much as €170,000 a year, but did not reveal their identities.

Under questioning from Ms Connolly, Mr Daly confirmed that Nama has made three complaints about developers to the gardaí over concerns that they attempted to hide evidence of assets they had from the State by giving them to their partners or families.

Mr Daly said a large number of similar cases which have not been sent to the gardaí, but many of these were resolved when Nama uncovered the attempts to hide information.

Meanwhile, during the meeting, Mr McDonagh was questioned on the State property group’s approach to addressing the housing crisis. Several PAC members raised concerns over whether Nama is engaging enough in addressing the issue.

Mr McDonagh said that, “regardless of the scale of housing shortfall in Ireland”, Nama cannot fund housing projects that are “not commercially viable”.

Yesterday’s meeting also heard that Nama cautioned Government officials on setting up a Land Development Agency months before its announcement last week.

Asked by Labour TD Alan Kelly if there were discussions on the matter with Government, Mr Daly said no “formal” talks took place. However, when Mr Kelly sought clarification by asking “did you have any discussions with any person on this earth”, Mr McDonagh confirmed talks with the Department of Housing.

“It was a courtesy visit... I said my own view would be you would not do it in a big bang approach,” Mr McDonagh said of the Land Development Agency, which was launched last week amid claims it could build 150,000 houses in the coming years.

Asked when Nama is likely to close, Mr Daly initially suggested 2020, before saying the group may have a role to play after that point.