Brendan Smith (Cavan-Monaghan, Fianna Fail)
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150. To ask the Minister for Finance if his Department was kept informed by the National Asset Management Agency of the process involved in selling off its loan book in Northern Ireland; the contact there has been between his Department and the Northern Ireland Executive regarding the disposal of such property; and if he will make a statement on the matter. [27681/15]

Michael Noonan (Limerick City, Fine Gael)
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I was not directly involved in the sales process itself but was kept informed by the NAMA Chairman on overall progress in relation to the sale of the NAMA Northern Ireland loan book. As the Deputy will appreciate, decisions on sales transactions are a matter for the NAMA Board in the context of its statutory independent commercial mandate.

In light of the political sensitivities in Northern Ireland to NAMA's exposure to Northern Ireland, the potential sale of such a large portfolio and the impact it may have on the Northern Ireland economy, I had a number of meetings with members of the Northern Ireland Executive where discussions of NAMA's Northern Ireland portfolio and a potential sales process were discussed. I can confirm the following meetings between myself, my officials, and members of the Northern Ireland Executive where NAMA's Northern Ireland portfolio and its potential sale were discussed:

13/06/2013 - Meeting in Dublin with Minister of Finance and Personnel

04/09/2013 - Meeting in Dublin with Minister of Finance and Personnel

27/09/13 - Meeting in Stormont with First Minister & Minister of Finance and Personnel.

14/01/14 - Phone call with First Minister & Deputy First Minister.

28/03/14 - Phone call with First Minister.

I also regularly attended the biannual North-South Ministerial Council meetings between members of the Irish Government and the Northern Ireland Executive, where finance matters with cross border implications were regularly on the agenda and at which I briefed attendees on NAMA's general progress. It was not unusual to discuss high-level matters relating to NAMA's Northern Ireland Portfolio at these meetings.

In respect of the bearing these meetings had on the ultimate sale of NAMA's Northern Ireland loan portfolio, I have set out further detail below.

Following a meeting on 13 June 2013 with the Minister of Finance and Personnel of Northern Ireland regarding banking issues with cross border implications, I received a letter for the Minister of Finance and Personnel which included a letter he had received from the law firm Brown Rudnick regarding potential investor interest in acquiring NAMA's Northern Ireland loan portfolio. In my response to the Minister, I advised him that such an expression of interest should be made directly to NAMA and that any decision to entertain such interest would be a decision for NAMA. I also indicated that NAMA's policy is to conduct openly marketed and competitive sales processes.

I am advised that following a subsequent expression of interest to NAMA, NAMA appointed Lazard, a major international investment bank, to assess the market interest in a potential sale of NAMA's Northern Ireland loan portfolio and to subsequently advise on and oversee the sales process. Lazard invited eight major global investment groups, alongside PIMCO, to participate in a competitive sales process (Project Eagle).

I am further advised that on 10 March 2014, PIMCO informed NAMA that its compliance staff had discovered that PIMCO's proposed fee arrangement with Brown Rudnick included a proposed payment of fees to Tughans, the legal firm who acted as a subcontractor for Brown Rudnick and a proposed payment of fees to a former external member of NAMA's Northern Ireland Advisory Committee (NIAC). NAMA viewed this disclosure as a very serious development and the NAMA Board met on 11 March 2014 to consider the most appropriate course of action. The NAMA Board decided that if PIMCO did not withdraw, NAMA could not permit them to remain in the sales process. On 12 March 2014, NAMA indicated its serious concerns to PIMCO regarding the proposed fee arrangement and, in particular, the proposed fee payment to the former member of the NIAC. On 13 March 2014, PIMCO informed NAMA that it would withdraw from the Project Eagle sales process. For the avoidance of doubt, no fee payment was made by NAMA to PIMCO or to any of the parties involved. I was informed of these developments by NAMA, including the withdrawal of PIMCO from the process.  

NAMA and Lazard continued to engage with the remaining bidders and I am informed that Cerberus emerged as the highest bidder for the loan portfolio. In light of the matter disclosed to it by PIMCO in March 2014, before confirming Cerberus as its preferred bidder, I am advised that NAMA, sought and received confirmation from Cerberus that no fee was payable to any person connected with NAMA in relation to any aspect of Project Eagle.  The proposed sale to Cerberus was announced in April 2014 and completed on 20 June 2014.

NAMA has also recently made statements regarding the sales process which outline that NAMA takes all measures it considers appropriate to safeguard the integrity of all of its sales processes. NAMA's statement reiterates that confirmation was sought from Cerberus that no fee was payable to any person connected with NAMA, in advance of the conclusion of the sales process. The Deputy will also note that Cerberus has stated publicly that in providing that confirmation to NAMA it sought and received the same confirmation from its legal advisor Brown Rudnik and, through Brown Rudnik, from the Northern Ireland law firm Tughans.

I am fully satisfied that the best return to the taxpayer was achieved at that time and that the Agency acted conscientiously in exercising its commercial discretion.

I understand that the very serious allegations made recently in the Dáil refer to the actions of a former partner of Tughans. Tughans, in their released statement, confirmed "that a former partner diverted to an account of which he was the sole beneficiary, professional fees due to the firm without the knowledge of the partners". Tughans also confirmed that the individual in question no longer works for the firm and that they have "reported the circumstances of the departure of the former partner to the Law Society". Therefore questions regarding the specific allegations are a matter for Tughans, the NI Law Society, and potentially law enforcement authorities in Northern Ireland. 

I understand that Cerberus, in their statement, have emphasised that "no improper or illegal fees were paid by [Cerberus] or on [Cerberus'] behalf and [they] take any allegation to the contrary extremely seriously."  

I wish to stress that the recent allegations, made by Deputy Wallace, in the Dáil regarding the alleged misappropriation of funds within Tughans law firm are not in any way applicable to NAMA. The swift remedial action taken by NAMA when an issue of concern did arise with one of the bidders, verifies NAMA's commitment to safeguarding the integrity of its sales processes.

I would add that both NAMA and the Government will cooperate fully with any criminal investigation, should such cooperation be needed. Similarly, I understand that NAMA will appear before the Oireachtas Public Accounts Committee, on Thursday 9 July 2015. The NAMA Chairman and CEO have stated that they welcome the opportunity to put on the record the factual position in relation to the sale of the loan portfolio of Northern Ireland debtors and to address any issues, of which NAMA has knowledge, which may be raised by the Committee.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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151. To ask the Minister for Finance if any assessment has been carried out on the potential impact on the Northern Ireland economy following the sale of the National Asset Management Agency's Northern Ireland loan book; and if he will make a statement on the matter. [27682/15]

Michael Noonan (Limerick City, Fine Gael)
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Neither NAMA, nor my Department, has carried out an assessment on the Northern Irish economy in relation to the sale of these loans.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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152. To ask the Minister for Finance if a memorandum of understanding exists between his Department, the National Asset Management Agency and the successful bidder for the Northern Ireland loan book; and if he will make a statement on the matter. [27683/15]

Michael Noonan (Limerick City, Fine Gael)
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The Department of Finance did not enter into any Memorandum of Understanding with NAMA, the ultimate purchaser, or any other third party in respect of the sale of the Northern Ireland loan portfolio. I am advised by NAMA that the Agency, likewise, did not enter into any such Memorandum of Understanding with any involved third party. The sale of NAMA Northern Ireland loan portfolio was conducted on an open market competitive basis and all bidders were given equal access to the same information. As is standard in any loan sale between two parties, there is a Loan Sale Agreement between NAMA and the loan sale buyer which is commercially confidential.

I am aware that the Northern Ireland Executive sought to agree letters of intent with potential purchasers of the NAMA Northern Ireland loan portfolio regarding the intended management of the portfolio post acquisition from NAMA. I understand that the purpose of establishing such letters of intent by the Northern Ireland Executive was to help protect and promote the recovery of the Northern Ireland property market and broader economy in the context of the potential concentrated ownership of property across that economy by a single investor following its sale by NAMA.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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153. To ask the Minister for Finance if he will provide, in tabular form, the dates and location of all meetings which took place between his Department and the National Asset Management Agency's Northern Ireland advisory committee from 1 March 2011 to date in 2015; and if he will make a statement on the matter. [27684/15]

Michael Noonan (Limerick City, Fine Gael)
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I can confirm to the Deputy that there were no meetings between my Department and NAMA's Northern Ireland Advisory Committee. The principal responsibility of the Northern Ireland Advisory Committee was to advise the NAMA Board in relation to strategy for its Northern Ireland assets. The Deputy will note that the NAMA Board, with my agreement as Minister for Finance, having regard to the implications of the sale of the Northern Ireland loan portfolio (Project Eagle) for the Northern Ireland Advisory Committee, resolved to dissolve the Committee following its meeting on 8th September 2014.

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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154. To ask the Minister for Finance the status of the National Asset Management Agency's Northern Ireland advisory committee; if he will provide, in tabular form, the period of service of all those persons who have served on the committee; and if he will make a statement on the matter. [27685/15]

Michael Noonan (Limerick City, Fine Gael)
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The NAMA Act provides for the establishment of Advisory Committees. Following discussions between the then Minister for Finance and the Minister of Finance and Personnel of Northern Ireland, it was agreed that an advisory committee would be established to advise the NAMA Board in relation to matters regarding NAMA's Northern Ireland assets. On the proposal of the then Minister for Finance, NAMA established the Northern Ireland Advisory Committee ("NIAC") in early 2010.

Members of the Committee were selected and appointed by the main NAMA Board to which the NIAC reported. Potential external appointees to the NIAC were provided for consideration to the NAMA Board by a number of stakeholders including the Minister of Finance and Personnel of Northern Ireland.

The Board resolved, with my agreement as Minister for Finance, and having regard to the implications of Project Eagle for the Committee, to dissolve the NIAC on 8th September 2014.

The period of service of all those persons who have served on the Committee is set out in the following table:

*Peter Stewart was Chairman of the Committee until his resignation from the Board and Committees on 10 Oct 2011. He was replaced as Chairman of the Committee by Frank Daly.

I would also like to refer the Deputy to NAMA's Annual Reports available on NAMA's website for further detail. Each annual report sets out the NIAC membership and provides further detail regarding the workings of the NIAC.