4 Jul 2012, 18:05
Brendan McDonagh, Chief Executive of the National Asset Management Agency (NAMA) will appear before the Public Accounts Committee tomorrow morning at 10 a.m.
Mr McDonagh will answer questions on the C&AG Report on the agency, published in May, which examined the ongoing management of the relationship between NAMA and the borrower and pointed to the challenges faced in recouping the €32bn it spent on property loans.
Chairman of the Committee John McGuinness TD says that tomorrow’s meeting will provide a valuable opportunity for the Committee to assess how well the project is working.
“The major challenge for NAMA is to be able to generate enough income to recover the investment made by the State. A key section of the C&AG Report outlines the way in which NAMA predicts and manages its cash flows in a way which contributes to the achievement of its overall financial goals. Consequently, the Committee will wish to know if NAMA have any estimate for 2012 of what rental income received will be compared to projections, whether all rental income is now paid into NAMA controlled accounts and how those accounts are monitored. We will also seek to assess how developers are working with NAMA to complete projects which will enhance their value”
The PAC will also explore the area of rent reductions with Mr McDonagh. At the end of May, Minister Noonan confirmed that NAMA had approved 145 applications for rent reductions and refused four.
Deputy McGuinness continues: “This is a 97 percent approval rate for rent reductions. The Committee will wish to know the value of the total rent reductions agreed to date. The Committee will wish to question Mr McDonagh on the evidence sought by NAMA to support the applications and how do NAMA assure themselves that the tenant’s business is in genuine difficultly.”
Deputy McGuinness notes that just one in five loans are fully performing, with €18.8 worth of loans in arrears: “The Committee will press Mr McDonagh on NAMA’s most recent assessment of the percentage of fully performing loans. We will wish to ascertain the level value of loans currently in the process of being restructured, and those loans being pursued through court action.”
Deputy McGuinness says that the PAC will wish to question Mr McDonagh on what is being taken out of the system by professionals such as receivers and the legal profession. “Are receivers getting an adequate return for the properties that are being sold? How much is being taken out of the system by professionals such as receivers and the legal profession?”
This meeting with the CEO of NAMA will take place at 10am tomorrow, Thursday, 5 July in Committee Room 1, Leinster House 2000.
Committee proceedings can be followed live at: http://bit.ly/24YmPI
Ends
For further information please contact:
Paul Hand,
Houses of the Oireachtas,
Communications Unit,
Leinster House,
Dublin 2
P: +3531 618 4484
M: 087 6949926
F: +3531 618 4551
Committee of Public Accounts
Membership
John McGuinness (Chairman)
Kieran O’Donnell (Vice Chairman)
Paul J Connaughton,
John Deasy,
Paschal Donohoe,
Gerald Nash,
Simon Harris,
Michael McCarthy,
Mary Lou McDonald,
Sean Fleming,
Eoghan Murphy,
Derek Nolan,
Shane Ross