Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I thank the Leas-Cheann Comhairle.

Regarding PIMCO's subsequent withdrawal from the sales process, I am advised that on 10 March 2014 PIMCO informed NAMA that PIMCO's compliance staff had discovered that PIMCO’s proposed fee arrangement with Brown Rudnick included a proposed payment of fees to Tughans and to a former external member of NAMA's Northern Ireland advisory committee, NIAC, who resigned in early November 2013. NAMA viewed this disclosure as a very serious development and I am advised that the NAMA board met on 11 March 2014 to consider the most appropriate course of action. The board decided that if PIMCO did not withdraw, NAMA could not permit it to remain in the sales process. NAMA advises that on 12 March 2014 it indicated serious concerns to PIMCO about the proposed fee arrangement and, in particular, the proposed fee payment to the former member of the NIAC. I am further advised that on the following day, 13 March 2014, PIMCO informed NAMA that it would withdraw as a potential bidder from the Project Eagle process.

We must credit PIMCO in coming forward to NAMA with this information when it was questioned by its compliance department. We must also credit NAMA for doing what was best for the integrity of the sales process.

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