THE BANKS may have tried to cheat the exchequer out of billions of euro in their dealings last year with the National Asset Management Agency (Nama), it was suggested yesterday.
Fianna Fáil TD Michael McGrath said there was a need to investigate the fact that “false, misleading information” was provided to the agency in a systematic way. This could have led to a “huge overpayment by the taxpayer” to the banks. He knew this was a serious charge, but “the evidence is overwhelming”.
Mr McGrath made his comments during a hearing of the Dáil Public Accounts Committee, which was hearing evidence from senior figures from the agency. Nama chief executive Brendan McDonagh said he did not disagree with the points being made by Mr McGrath.
When Michael D’Arcy of Fine Gael asked Nama chairman Frank Daly if he believed the banks had attempted fraud, Mr Daly replied: “The figures [from the banks] were certainly misleading. You can speculate as to what was behind it.”
Mr McGrath suggested that the Garda Bureau of Fraud or the Office of the Director of Corporate Enforcement should investigate the matter. Mr McDonagh suggested the first port of call should be Financial Regulator Matthew Elderfield. He said Nama would help in any way it could.
The committee heard the banks gave information about loan-to-value ratios that was significantly incorrect. The ratios have a direct effect on the values Nama puts on the loans worth €73 billion that it is buying. The committee also heard that most top developers have been told to return property which they have moved to family members.
One developer has returned €50 million in assets. If they are not returned, the agency will seek to force their return.