Lorraine Higgins (Labour) | Oireachtas source

I thank the Minister for his attendance to discuss and debate the very serious revelations which have emerged over the past number of days about the activities at NAMA. The allegations of unsavoury practices engaged in by some servants and-or agents of the agency is most worrying to the taxpayers of Ireland. Last May and June I raised issues pertaining to NAMA and employment contracts and the need for non-compete clauses to be included in them. I also raised the fact there was evidence of data protection breaches, contrary to the Act, and indeed the possibility of employees having breached section 221 of the Act which forbids lobbying by third parties. These are all very serious matters.

However, this matter arose during the course of this week with complaints to the Garda Síochána, a court action and now a former employee turned whistleblower coming forward to disclose wrongdoing in the agency. I understand the matter is now with the Garda fraud squad. I look forward to learning the outcome of these investigations in the near future.

In early summer this year I warned that these communications could leave the State and the taxpayer exposed to a potential claim for damages of millions of euro in circumstances where it is quite clear to me that NAMA, its servants and-or agents did not act in the best interest of its customers and indirectly, the taxpayer. That NAMA has been leaking confidential information is clearly placing the interests of personal gain ahead of the best interests of the taxpayer. It is clear to me that much of what appears to have been happening was facilitated by the veil of secrecy surrounding the agency's operations. The previous Fianna Fáil Government created NAMA, at a cost of billions of euro to the Irish taxpayer, yet there is no transparency or accountability required from the agency. This is baffling in a modern democracy. We are in a legislative headlock because the legislation governing the agency, the NAMA Act, is severely limited in scope. This has helped to create these recent problems and revelations which are contrary to the public interest.

We do not know what deals are being done nor do we know the identity of those buying property from the agency. It is not right to put private sector assets into a body which could be subject to influence because of the lack of accountability.

In the past I have referred in this House to an individual who left NAMA and immediately became partner of another property company in the UK, all made possible because there is no non-compete clause of significant duration existing in employee contracts. No regard is being given to the sensitive information relating to valuations, loan amounts and to the amount NAMA would be willing to accept for properties. This is information which was known to this individual. At a time when property prices are on the rise - Dublin property prices have risen by 16% - this issue is of great concern. Today's whistleblower admitted that he has had communication with third parties, along with other employees of NAMA, in respect of a customer's loans. This was and is highly prejudicial to the NAMA customer in question and will undoubtedly lead to copious legal cases being taken against the agency.

Suspect behaviour seems to be tolerated in NAMA. An Internet search showed that in August 2012 the Irish Independent reported how an existing employee made himself a preferential creditor in dubious circumstances while working with Irish Nationwide, a bank which is now within the remit and ownership of NAMA. He was an employee of the debtor's sister company before taking up employment with Irish Nationwide. I ask if NAMA investigated Peter Malbasha at this time-----