Frightening, bewildering, undemocratic – but true

HERE’S the real, frightening and ugly truth about NAMA. Its bosses say they will diligently chase all developers for the full repayment of their loans, totalling more than €70 billion.

They may as well be chasing moonbeams.

Like many business people, big and small, here and elsewhere, developers will have carefully salted away a substantial portion of their wealth, well before the crash, and well out of reach of both NAMA and Revenue.

Some of their assets have been legally passed on to spouses and family and are untouchable. A greater portion will have been hidden either offshore or by other ‘creative’ means, with the assistance of their financial ‘advisers’ and, ironically, the banks. The remainder will be kept out of sight under the mattress for the rainy day.

Limited liability laws, and of course bankruptcy, will also be invoked by many developers leaving the poor NAMA lads, and the hapless Brian Cowen, with mere peanuts and egg all over their collective faces.

The resulting tragedy, of course, is that the poor citizenry of this country will continue to carry the financial can for the reckless foolishness of bankers, developers and politicians, and will be well and truly ruined for generations.

Developers, like everyone else in the thriving black economy, after 13 years of unabashed Fianna Fáil corruption, incompetence and squandermania, would be absolutely mad to declare full disclosure to NAMA and to Revenue, and can justify their reluctance for the following reasons;

- Daily they see Cowen and Lenihan squander untold and increasing billions of their hard-earned money into the black hole of Anglo, BoI, AIB, etc.

- They have looked on with incredulity seeing their personal and corporate taxes squandered on and by the likes of John O’Donoghue, Ivor Callely, Jackie Healy Rea and sons, and on government jet/helicopter junketeering by Noel Dempsey, Mary Coughlan, Micheál Martin, et al.

- They have witnessed the outrageous golden handshakes and handsome pensions to Patrick Neary, Roddy Molloy, David Doyle, and the rest, rewarding serious failure in the process.

- They have also witnessed their cash giving dig-outs to Bertie Ahern’s multiple incomes as well as the €175,000 per annum for his car and drivers.

- Equally they see Brian Cowen, chief architect of the destruction of our economy, and a total failure as Taoiseach to boot, being paid nearly €500,000 a year in salary and perks – the fourth highest in world politics.

- They have watched in awe as their money continues to enrich the shysters, lawyers and others involved in the endless, pointless and toothless tribunal gravy train.

- Developers, like the rest of us, would not be at all impressed by the €5bn in waste languishing in the public service and quangos, clearly identified by Colm McCarthy a year ago, but still waiting to be addressed.

- Don’t mention evoting machines and PPARs.

The net effect of the creative financial engineering by developers clearly means that NAMA, far from breaking even, realistically will be lucky to recoup 50% of the €70 billion of toxic and worthless assets purchased from the banks and building societies. Add in the €35bn in recapitalisation costs and this brings the net cost to us citizens to a cool €70,000,000,000, or €70bn in the vernacular.

Frightening, bewildering, totally undemocratic, but true.

John Cooney

Wilton Road

Cork