“NAMA wishes to state that no effort was made by the paper in question to check the allegations being made with NAMA through its Press Office before the story was published and no opportunity was afforded the Agency to reject the allegations being made.” Extract from NAMA statement on 20th February, 2012.
It was John Drennan and Ronald Quinlan’s article in yesterday’s Sunday Independent which inspired the “10 things that NAMA is doing right” blogpost. The Independent’s article was headlined “Now NAMA almost loses Google jobs” and suggested that NAMA had jeopardised 230 new technology jobs in our country where there are 310,000 unemployed and 440,000 on the Live Register. A serious allegation indeed; the thing was that the article itself didn’t offer any detail on how NAMA had jeopardised any deal. The problem arose in August 2011 when the developer still had control of the property. The developer, the “Ford Cortina and three-bed semi”-averse David Agar gave a rare NAMA developer’s interview with the Sunday Independent two weeks ago, and it is plain he is “furious” at NAMA having foreclosed on his loans. Of course NAMA closely oversees its loans, so the developer would doubtless have needed to consult with NAMA on proposals, but it wasn’t clear from the article that delays in this oversight by NAMA had been an issue. And although Minister for the Environment, Community and Local Government, Phil Hogan did confirm that he intervened in the matter, it seems the focus of his attention was the South Dublin County Council and there was no evidence in the article of the Minister acting to spur NAMA on.
I came away wondering what exactly NAMA had done wrong in this matter, based on the information in the article, and having considered the media attention on the Agency in the past couple of months, thought some balance was needed and so there was a blogpost “10 things that NAMA is doing right”
This morning, in an unprecedented statement, the Agency itself has hit back. The story in the Sunday Independent is “completely inaccurate and misleading” according to the Agency and the facts are diagonally opposed to what is suggested by the Sunday Independent. The Agency claims “the facts of the situation are that NAMA actions were crucial to resolving a number of issues that NAMA inherited which would have prevented the jobs being created including settling a Court action over rights of way involving an adjoining land owner and settling outstanding development levies owed to South Dublin County Council. This ensured that services and access were provided for over 70 acres in this and an adjoining development site. NAMA’s actions in this matter not only enabled the project to proceed but facilitated the sale of a second adjoining site in the vicinity which will see another high tech computing operation proceed which will create additional employment. Throughout this project, NAMA dealt directly with South Dublin County Council and with IDA and the Agency has very good relationships with both at senior levels where matters not of NAMA’s making were able to be resolved very quickly.”
NAMA hasn’t restricted itself to the Sunday Independent article however. The Agency claims that it “has seen a significant increase in the number of baseless, critical stories relating to the Agency as the level of enforcement activity by NAMA has increased in recent months and also where NAMA has applied increased pressure on some debtors to reverse asset transfers, reduce overheads or provide unencumbered assets; We have seen increased efforts to spread unfounded and damaging stories about NAMA by some parties whose sole agenda seems to be to frustrate NAMA in carrying out its responsibilities”
This has a ring of credibility to it, but there is also a risk of unjustifiably blaming the “blasted meedja” for shining a light into a very secretive organisation – perhaps secretive because of legislative or contractual constraints but with €74bn of our money, it should not be surprised at the level of interest or scrutiny. But I have no doubt that big beasts are reaching the moment of truth with NAMA where their plans, their assets, their actions and commitments are being tested and there is big money, “lifetime money” at stake.
NAMA of course can also help itself, for example, if it is asked in the middle of normal working hours to comment on a story, particularly one coming from sources that are generally on the button, that the Agency does more than issue a bald “no comment”, and although the Agency will frequently be unable to address the specific intricate details of a case, particularly where the matter is fraught and is ongoing, that should not totally prevent comment on a general basis, particularly where a story might be misleading. However it seems in the Sunday Independent case that there was no contact with NAMA at all for comment.
NAMA has not commented on the potential for legal action in respect of the Sunday Independent’s reporting.
NAMA Wine Lake 
The more secret NAMA remains the more open it will to these accusations and the more defensive it will appear. This story is a great reason for NAMA to become more transparent in its operations.
@FPL, absolutely true. NAMA will point you to the NAMA Act and its contracts with borrowers and say it is legally constrained in what it can reveal. NAMA doesn’t do politics but if we want more NAMA transparency, we probably need legislation. Having said that, it oftentimes seems that when NAMA is presented with two routes, one open and one secretive, it chooses the latter.
There are two things that NAMA does not like – political interference and critical media headlines. The genesis of both comes from an inherited civil service mentality that detests interference and accountability.
If Nama is stuffed to the gills with people from the property interest; how can it then inherit a civil service mindset?
@AS, It isn’t “stuffed to the gills” with property people. Its Chairman and Chief Executive come from the civil service and that ethos dominates the agency. The Board consists of civil servants and accountants. No property expertise at all.
http://www.nama.ie/about-us/board-and-committees/board-members/
This is just Frank having a “hissy fit” on a Monday morning following the Sunday papers. It is really irrelevant whether NAMA “has applied increased pressure on some debtors to reverse asset transfers, reduce overheads or provide unencumbered assets”. In terms of a €74 billion book, it is about the economy – and NAMA has its heel on the oxygen supply to that economy.
It has to sell its loanbook.
For the past two years its staff has been misallocated. John Mulcahy should have been doing what he is good at, which is selling, Mary Bermingham, who was in Irish Life before Pizarro, should have been managing assets and Michael Moriarty should have been bring in investors, which is what he is good at.
Instead of that they have been debt collectors, trying to get debtors to reverse transfers … lost in the petty cash column. Leave that to Ronnie Hanna from the Ulster Bank. It seems to be right up his street.
Quickly, run and shut that barn door. It’s only 2012.
http://www.bloomberg.com/news/2012-02-20/icelandic-anger-brings-record-debt-relief-in-best-crisis-recovery-story.html
They went up considerably in my estimation by providing answers to the excellent questions from Pearse Doherty,agreed they need some impartial observers.Great work NWL…if they are a little more transparent some commentators will ease of the critism too!
On the NAMA website they say their media relations are managed by Gordon MRM.
One thing the PR firm should do is advise NAMA to put a blog on the website with appropriate social media feeds.
NAMA are in the business of reputation and trust as much as they are in the business of property.
NAMA is firefighting the rumour when it should be spreading the truth.
The first thing is to get out ahead of the story – and the way to do that is to go out and engage directly with the issues directly as they arise, where they arise.
A dedicated Twitter account and a social network advocate/voice engaging with the wider community would be a good way to personalise the organisation and be a smart communication strategy.
Just because they choose to cloak a lot of their dealings in secrecy doesn’t mean they can’t engage in a much smarter way media-wise.
A dedicated blog, updated daily, on their website and a constant social network feeds would bring a very different dynamic to their profile.
If they were being really enterprising they could set up a dedicated YouTube channel and do monthly reports. They might be surprised how many possible clients might become “fans”!
@WGU, there is a Twitter account for Gordon MRM, which represents a number of companies including the NTMA, NAMA and Permanent TSB, and I see that it released the statement reported today on here, last night at 10pm.
https://twitter.com/#!/gordon_mrm
I can’t see there being a NAMA blog – NAMA issues an average of one statement a month – or intensive engagement on social media though!
Yeah – as long as NAMA see communication as something to be managed by some PR company, and as long as that PR company see minimal contact as being acceptable to NAMA – then they will continue to lose the information war.
Frank should either man up or shut up.
@NWL in response to WSTT and again today you reference 74bil. In keeping with the ‘accurate’ reporting thingy…..best case today 30bil.They never got the money but “purchased” a bunch of crap from incompetent Irish banks.
@John, NAMA has acquired €74bn of loans at par value from the banks for which it has paid €32bn. It has disposed of some loans, and some loans have been refinanced or repaid though as with much NAMA information, we don’t know how much. There’s a €7bn quoted NAMA number for “approved disposals” but that may include loans where non-NAMA banks were involved eg a developer had a €50m loan from Anglo and a €50m loan from Deutsche Bank for a single property.
NAMA’s primary objective, says the Agency, is to recover the €32bn but the Agency will tell you it will still pursue the €74bn as feasibly as it can. The €74bn may be an unattainable dream and NAMA might be lucky to even recover the €32bn, but the €74bn is what is owed and will still generally be cited on here in that context.
Perhaps failure to face and admit “reality” is contributing to some of the issues,if they came clean and admitted that it’s Alice in Wonderland,pursuing this money.
“Would you tell me, please, which way I ought to go from here?”
“That depends a good deal on where you want to get to,” said the Cat.
“I don’t much care where–” said Alice.
“Then it doesn’t matter which way you go,” said the Cat.
“–so long as I get SOMEWHERE,” Alice added as an explanation.
“Oh, you’re sure to do that,” said the Cat, “if you only walk long enough.”
(Alice’s Adventures in Wonderland, Chapter 6)
Are they also playing the press a little with the needless,waste less pursuit of SWAG from developers.
@John, “Are they also playing the press a little with the needless,waste less pursuit of SWAG from developers”
There’s probably some of that. I thought the Irish Independent report on spousal reversals over the Christmas holiday period seemed planted, as the data reported in December seems to have been based on real NAMA statistics which Frank Daly repeated in his speech last week at the Dublin Chamber of Commerce. This was picked up on here:
https://namawinelake.wordpress.com/2011/12/28/post-christmas-spinning-classes-start-early-for-nama/
Last week, the Irish Examiner reported on NAMA’s additional advances in the UK without any context, and that was based on information provided by “a NAMA spokesman”.
http://www.irishexaminer.com/news/nama-lends-360m-for-british-projects-183792.html
The information was also misleading because the Examiner reported that €360m of the €1bn advances were in the UK but as we saw two days later when Gerry Adams wheedled a response out of NAMA it was actually €490m out of €980m that had been approved, and of the €740m spent, €385m was in the UK. So the Examiner’s report, based on information confirmed by NAMA was, not to put too fine a point on it, misleading because it implied that only 36% of NAMA’s spend was in the UK – with an implication that 64% was in Ireland – and in fact it is more than 50% (and if you include Northern Ireland as part of the UK which NAMA doesn’t it was even more!)in the UK and 39% of actual spend is in the Republic of Ireland. Misleading?
https://namawinelake.wordpress.com/2012/02/16/nama-provides-geographical-split-of-advances-to-developers-which-might-offer-clues-as-to-why-we-have-440000-on-the-dole/
So yes, we need keep an eye on NAMA’s use of the media as well as keeping an eye on the Dark Forces currently “besieging” the Agency.
The response by Noonan in the Dail on QIF’s was completly misleading and inaccurate,you picked it up too.
@John, yes that’s true in my opinion, the response given by the Minister for Finance Michael Noonan was misleading because as shown in a NAMA tender document two days later, NAMA does have a quantum in mind for the size of the funds – less than €500m for the first fund in 2012 – and there is both due diligence and valuation required for the funds to acquire the assets.
https://namawinelake.wordpress.com/2012/02/08/nama-creates-mini-me-asset-management-agency-right-under-the-noses-of-40-politicians/
I’m probably flogging a dead horse again on here,but instead of opposing UORR,which in my opinion would have helped the Irish Economy,they could get behind Grangegorman,which is shovel ready,big and sexy,your lenders would most likely approve it.The amount spent to date in assisting the UK construction and property industry would go a long way to covering the costs here.
http://www.ggda.ie/
@jg, Grangegorman is a pipedream… just like the Digital Hub and the Smart Economy. What bank is going to fund its development? What developer would be remotely interested in taking the risk in Ireland? They are all looking elsewhere.
In relation to leaks and rumours from the Darth Vader developers, I am not naive enough to believe that this is not a two way street with “spin” being released to favoured media hacks from the propaganda machine within NAMA. The government must be enjoying the battle, waiting like wolverines to feast off the outcome.
Michael Whelan’s first round begins today. Not as much fun as Johnny in the red corner…. but engrossing nevertheless.
Thanks,WSTT the wily Noel Smyth will be with watching,McCann Fitz too,they still on the NAMA preferred list of legal advisors!
The plastic paddies out in force in Palm Beach,perhaps Ross can redeploy his windfall from B of I as a gesture,yeah right don’t hold your breath there.
I respectfully disagree regarding Grangermoran,it’s a fantastic project,most important hits all the right buttons,for infrastructure funding,lender approval by Trokia.Sometimes,you have to dream a little ..
@jg, “plastic paddies” lol, John. A fair bit of plastic surgery alright and some serious sucking up to Wilbur in what can only be described as a “Wilbur Lovefest”. His friar’s haircut was even blacker than normal for the occasion!
@jg/wstt
Grangegorman?
there is a whole untold story of Biotech in Ireland. How over educated grads were given white coats to work in what multinationals considered’ fill and finish facilities” or ‘bottling plants’, but to the Irish media of course they were world class scientists, on the world stage, with world class facilities.
Believing the sham they spent like pros, while working as overpaid semi skilled labor ( in white coats) filling bottles with formulations from America where the real scientists work. Sham… nothing more.
Where are they now? unemployed or emigrated.
How many Irish people lost money on for example, the Elan pipedream which even today is still paying big in America while it’s ashes in Ireland don’t even smolder anymore.
It’s not just the property crash…it’s a credibility and integrity crash.
@SF CA really enjoyed your mugger analogy,apoligies for numerous typos above,mobile.
WSTT,there are numerous ways the fund/develop the deal,NAMA could joint venture it for a start,they have 5Billion to spend,only allocated 1Billion to date with lions share in the UK.Estimated costs are 450 million,sell off the student housing upon completion,etc.
Apoligies,will “write up” or “talk it up” later,kids hols,and best of luck to NAMA,is the in house legal team the “best and brightest”….is NAMA the dumping ground for NTMA or a promotion.We will find out this week.
@ John Gallagher
Did you hear of Property Industry Ireland since the UORR u-turn . Have they produced any property academic papers/stats etc.?
@HR lots of ‘anetodal’ studies,we had a post recently that 90% yep 90% of tenants requesting reductions were granted them !
That was Big Mac Fitgeralds little pet project,shame his oul fella never paid back AIB,FG still wrestling with moral hazard on debt forgiveness,just follow ‘The Garrett’.It was outlined,detailed at one the tribunals.
Nama have no-one to blame but themselves. The place is like the Forbidden City; an edifice of power, money, intrigue, and secrecy from which no information is allowed to escape.
Frankly, right now, the biggest source of unfounded stories about Nama is Nama itself. The taxpayer is being left on the hook for €30.5 billion here and we don’t even know for sure what assets Nama even owns. Without revealing its accounts, Nama leaves us no option but to takes its word (and estimates) for everything, so it’s no wonder that people are left to draw their own conclusions.
And now they expect us all to simply shut up about everything until they decide to toss us another morsel of information. Is this some old-school religious logic or something? That we should know our place, and trust our betters? With €30.5 billion? I’m not inclined.
Maybe Nama should just declare the entire Google matter commercially sensitive and put everyone under an injunction or the like. Better watch out NWL, they’ll be having their eye on you next.
@John gallaher
I thought it was 99%
The ‘banana’ deal on Grafton St. was very troubling,it’s reported on here.
Combined rental income of 1.5 mil was scheduled to drop to 750 for Banana,they paying minimum wages too.Not,sure of its a NAMA,deal was ‘owned’ by Bernie Mac. But indicative of the devasting effects UORR,is having on Irish retailers.
@OMF : In fairness to this blog it has been neutral with regard to NAMA from the outset.
I don’t think this site can be deemed to be biased.
Some of the comment here might be of an anti-NAMA bias however but it is only right and good to have diverse views.
who_shot_the_tiger is always fair to Nama ?
@HR, I just know more about it than most people. We will judge whether the comments were fair or not at the end. Although I would appreciate examples of perceived unfair comments that I made
In say like the lady few posts !!h
Hi WSTT,hope you are fighting the good fight,public sympathy and understanding towards the plight of Irish developers a bit low. Agar making a complete and utter fool of himself in Sindo does not help.Pity,the Irish court system stuck in the dark ages,Judges still wearing fancy dress and no cameras or audio.
NWL the links you provide,stateside to court docs always say ‘timed out’.
d
@John, the courts.ie website is a bit unwieldy. If you are looking for the Treasury court case, then do the following
Go to http://www.courts.ie
Click on “High Court Search” in the right hand column
Accept the terms and conditions
Enter 2012 as the year
And in Defendant Surname enter National Asset and click search
Click on View details of the first case
And then on the Left side column click filing, defendant etc
@NWL many thanks as always.
@jg, I don’t think anyone can claim with any conviction that the developers are the brightest bulbs on the Xmas tree! Mr Agar should grow a set and stop whinging. He’s becoming a caricature of himself.
On Grangegorman, it’s a great site. It should have government support for its healthcare and educational potential, but they pulled it. Ten years ago Anglo would have funded it. They lost their way when they decided that they wanted to fund every thing and everybody. There’s nobody left in Ireland to do it now.
@WSTT,well you have NewEra for starters,if NAMA rowed in behind it and supported something in the “Republic” they may make a few fans.Apparantly,it has a ‘social dividend’ provision,lots of extremely talented Irish looking for work,what’s not to like about it.Instead,they opposed UORR,and have frozen the entire development sector in the Republic,they appear to prefer support UK projects.
@jg, “New Era” – a fiction by Fine Gael. You’ve heard it all before John.
I know my fate. Financially it’s akin to the early Irish Texans. As an Irishman in the States you will know what that means.
In the early afternoon of March 3rd, 1836, Colonel William Barret Travis, the commander of a mission-fortress known as the Alamo, arose to explain the situation to his 187 fellow men at-arms. He told them that they were surrounded by an enemy force of over 5,000 soldiers and their only decision, now, was not whether or not to save their own lives, but rather to choose the manner in which they would die. Travis then unsheathed his sword, drew a line in the sand, and asked his comrades to signal their willingness to die by stepping across the line. Among those who did were nearly 40 men of Irish heritage.
Almost two centuries later, a similar line has been drawn. The locale, however, is no longer a tangible fortress and the line’s crossers are not dirt-covered would-be-revolutionaries. This new line has been drawn across the Irish property industry; and those deciding whether or not to cross the line are the debtors who risk not bodily harm, but rather the total loss of their financial resources and personal pride.
The choice, now, is not between cowardice or death, but rather between whether the inevitability of bankruptcy is chosen now or forced later. Debtors (mainly developers) are currently being asked to choose between faith in the weasel word statements of hope from those working within NAMA and the conflicting reality of the NAMA Act and the many statements of Frank Daly under which a slow death will be meted out over time.
All the old forces are present – fear is here, loss is here for the debtors and the wider public, volatility, and the opportunity for tremendous gain for the bottom fishers and favoured insiders – and so are some less frequently seen forces – prejudice, media bias, blame and bigotry.
Most debtors fit Churchill’s description of an appeaser “one who feeds a crocodile, hoping it will eat him last.”
I prefer to live by the old Italian proverb that “it is better to live one day as a lion than a hundred years as a sheep”
I’m with the Texans at the Alamo.
@WSTT
Speaking of Irish in Texas: Batallón de San Patricio.
http://en.wikipedia.org/wiki/Saint_Patrick%27s_Battalion
@WSTT she who must be obeyed is home at present.
Described it as pretty bleak,the biggest problem people living in the past.The money is gone,with the erosion in values.No amount of “spooks” and investigation will turn up significant amounts.
NAMA/NTMA will face increased hostility if they do not announce some serious initiatives to kick start the property industry,what is holdup with bankruptcy legislation,leverage ?
@JG, From the USA, where banks are still lending and where there is liquidity and leverage, it is impossible to comprehend the financial situation in Ireland. The economy is akin to New York in Will Smith’s “I am Legend” apocalyptic movie. We have a long road back. The recovery cannot begin until the banks are lending – and there is no sign of that.
@WSTT,there also has to be acceptance that developers did not act alone,to rebuild the economy you will need one or two.
Ross and Kennedy Wilson,have what’s termed an ‘unfair’ advantage been the only game in town.It’s truly amazing,over here throw the whole shit show in Ch 11. no tears,catch the keys.Right,what’s next !
Onwards and upwards,best of all to have borrowed a few hundred million and failed,is actually not a death sentence,but a stepping stone.Of course best of all is to have called the market,cashed in your chips,you can insult whoever you like !!
John Gallaher
Is David Agar an auctioneer?
Well, so far at least they haven’t screwed up as badly as the Ulster Bank. Who, when they put in receivers into the Dunner’s hotel empire had to write a large cheque to his fragrant wife, the owner of the furniture and fittings! So far they have managed to miss the banana skins placed by the more wily of their developers.
@HR, His brother John Agar was an auctioneer, who used to work with Mason Owens & Lyons. He now owns his own agency in Sandyford. See link:
http://www.agar.ie/about_us/index.htm
@ wstt
What did David Agar do before he became a developer?
@HR, He was an estate agent in partnership with his brother.