It has been six weeks since the Sunday Times revealed that a (former) NAMA employee had purchased a house and land in Lucan, west Dublin from a NAMA developer. There was outrage at the perception that the employee, Enda Farrell, might have obtained some advantage by virtue of his position in NAMA. This afternoon, NAMA has issued a statement telling us what it has done.
Most significantly, NAMA has taken High Court action against Enda Farrell – who is not mentioned by name in the NAMA statement incidentally – and Enda Farrell’s wife to recover information which NAMA believes may have been taken without authorisation from NAMA. The legal proceedings so far have been in camera which is why they weren’t picked up on here, but NAMA says that the High Court has ordered that Enda Farrell hand over data held on his computer and other storage devices. NAMA says it is now analysing that data. The matter has been transferred to the Commercial Court division of the High Court, and NAMA is not making any further comment on the proceedings themselves, not even saying what remedies it is seeking.
Of less significance perhaps is the investigation that NAMA commissioned its internal auditors Deloitte to undertake in the wake of the revelations at the start of August – these investigations have now concluded and NAMA claims that the property in Lucan was sold at a price which reflected an independent valuation and that Enda Farrell “had no role in the assessment or approval of the transaction by NAMA”
However NAMA also established that, contrary to NAMA’s requirement of full disclosure by staff in respect of the purchase of NAMA-related property, Enda Farrell did not disclose the transaction “at any time either prior to or following the transaction”. The NAMA board is currently examining the findings in Deloitte’s report and will consider if changes are required to NAMA’s internal procedures.
The full NAMA statement is here.
UPDATE: 12th September, 2012. Analysis:
The press release from NAMA this afternoon is intriguing. On one hand, the investigation into the sale of the property in Lucan to Enda Farrell is a damp squib. NAMA found that Enda didn’t disclose to it the fact he was buying it. However as far as NAMA is concerned Enda paid the market value, so didn’t gain any advantage. And whilst the NAMA board is still considering the results of the Deloitte investigation, it doesn’t look as if there will be any further action involving Enda on this matter.
However the bombshell was the fact that NAMA had uncovered what it claims was the inappropriate taking of information. NAMA went to the High Court and secured an Anton Piller order which allows the applicant to conduct a search without giving prior notice. They are rare enough in Ireland with perhaps one or two a year seemingly. It indicates a serious matter. NAMA doesn’t say what information might have been compromised or what remedy it is seeking at the Commercial Court where the matter will not be heard in open court. There is still no reference to the case on the Courts Service, but that may change tomorrow.
NAMA has also referred the information matter to the Data Protection Commissioner and the Gardai. Again, it seems as if NAMA is being very robust here. It seems the Enda Farrell story is no longer about a property in Lucan but about the confidentiality of NAMA information. That’s a turn-up.
UPDATE: 21st September, 2012. The Irish Times reports that Ernst and Young has carried out an investigation and passed on the results to NAMA. And that Alice Kramer has resigned her position, “during the last few days”, it is understood.
NAMA Wine Lake 
The person in question now works for Forum Partners which, along with its affiliates, is a global real estate investment management firm with over US$6 billion in AUM. Forum sponsored funds which have delivered strong performance through investments in 17 countries in Europe and Asia.
…. the plot thickens!
It was widely known in the industry that Enda “did not leave empty-handed” and that he had NAMA’s acquisition prices along with other data. It was also rumoured that his days were numbered with Forum once the issue of the house purchase became public knowledge. This was an own goal — he was not very discrete about the information that he had. Maybe he should have been less boastful. Not a good ambassador of the dark arts.
It reminds me of the story of the employee who had ambitions to be a scrap dealer and at night was surreptitiously removing copper wire from the basement of his place of employment. In the process of cutting the wires, he accidentally lopped off a couple of his own fingers with the wire cutters and then fled the scene. The police were able to fingerprint the severed digits and that was the end of the scrap dealing career.
However, I’m afraid NAMA is closing the door after the horse has bolted. Without meaning to mix metaphors – Like Elvis, their purchase prices have left the stable…… a considerable time ago.
Could you contact john.mooney@sunday-times.ie
Last year Mr Aynsley’s computer was stolen. On it was information relating to accounts at Anglo Irish Bank. Those who were mentioned or had information relating to them on the computer were contacted and informed.
http://www.independent.ie/national-news/anglo-chiefs-laptop-stolen-2525225.html
Seeing that Mr Farrell had intelligence and elements relating to NAMA debtors’ affairs on his computer, can we assume that relevant details of the particulars leaked will be shared with those whose financial and business information were exposed – as required by law?
The Irish Government and state agencies — health, prison, law enforcement, semi-state bodies, including NAMA — have a legal obligation to keep personal information private. For instance, a few years back, the gardai had to pay damages when information about a suspect found its way into the public domain by way of a garda leak.
This incident is a massive breach of the Data Protection Act. And it is through the data protection law that citizens draw their protection. It was always rumoured that information gathered while employed in NAMA was subject to the Official Secrets Act. If so this particular incident breached it.
It remains to be seen if this will be brushed under the carpet or if NAMA really is transparent. A fair test of NAMA’s bone fides. Also a fair test for our Data Protection Commissioner (who he?) who passes his time down in Portarlington, to see if he has any teeth.
http://dataprotection.ie/docs/Home/4.htm
One worth watching.
BTW, I have been forecasting this, the first of the major NAMA scandals, for some time now.
From the Independent:
“The information, it is claimed, includes a master spreadsheet of all loans acquired by NAMA and all properties acquired by NAMA as security for the loans specific asset disposal strategy in relation to certain NAMA debtors and other information acquired in confidence by NAMA.”
Which is what the dogs in the street (or certainly those dogs in the property business with a sense of smell) knew for the past three months.
Why did this person, Alice Kramer ….a manager in Ernst and Young…..delete her Linkedin Profile.
http://webcache.googleusercontent.com/search?q=cache:JbuQ9pi-Sh4J:ie.linkedin.com/pub/alice-kramer/11/618/b24+&cd=1&hl=en&ct=clnk&gl=ie
It’s unfortunate, but probably intentional, that both of these stories were released together. Obviously the possible theft of data is a big issue.
However the property sale and the NAMA response isn’t good enough. Is NAMA saying it is acceptable for its employees to acquire off-market properties? Perhaps they need to explain this and clarify if there are any other employees that have made similar purchases.
“However as far as NAMA is concerned Enda paid the market value, so didn’t gain any advantage. ”
The property was off market – how can they know how much it would have gone for if it was on the open market? This stunk to high heaven before the data issue came out.
White collar criminals are flourishing in this country STILL – what’s the ODCEs opinion on this? The Minister for Finance?
I’m a private sector worker and we all know the public sector needs to be reformed but it sickens me to see the crass greed and dishonesty that’s endemic in the private sector.