Grubby little Nama North deal has cost us twice over

AFTER watching the devastating BBC Spotlight programme on the machinations of National Asset Management Agency and the alleged dealings of a small circle in the North around the sale of a property portfolio, it is clear there is only one big loser – the Irish taxpayer. When Nama was set up in four days before Christmas 2009, the air of crisis was pervasive in the country as the six major banks teetered on the edge of collapse.

The whole operation looked simple enough: Nama, using State funds, could buy €70bn worth of bad property loans off the casino banks at a much reduced price. The bank losses would be soaked up, again by the State, in return for equity in the almost worthless entities. Nama would then wait till the property market improved and, hopefully, recover some money for the State.

Over Christmas 2009 Nama became the biggest owner of property in the world but almost from day one it has proved to be a very controversial enterprise.

Its creation was followed by years of crippling austerity, which saw massive income tax increases, untold hardship and knock-on effects that now see us facing a winter of public sector strikes as we attempt to pay back the losses incurred by the banks.

Not many of us knew that four Irish banks had loaned €6bn to speculators to buy property in the weakest part of the UK economy – Northern Ireland. Some €4bn was wiped off the values when the reality of the economic house of straw came crashing in 2009.

The crux of the allegations in the BBC Spotlight programme is that the Nama loans in the North were the object of a well-organised ‘sting’ which saw the Irish taxpayer get much less for the properties than they were worth. And in one bound in the biggest property transaction in Northern Ireland history, the loans were sold at a price many claimed was far below their value. As if it weren’t bad enough for the Irish taxpayer, and generations to come, to take the massive hit when Nama bought the loans, it looks like they took another hit when the property was eventually sold on.

Bizarrely, it looks like the only law that may have been broken is in the Republic where Nama legislation states it is illegal to work for seller, buyer and developer – and where the original loan owners are not allowed buy their loans back at a reduced price.

The BBC alleged one developer had €300m worth of loans wiped out – and he got his property back! The €300m loss is picked up by the Irish taxpayer!

It seems it would be easier to sort the eels in Lough Neagh than unravel the alleged machinations. But one thing is clear: there has been too little oversight of the biggest property firm in the world.