Nama to face inquiry into undervalued loan claims

Nama is to be called before the public spending watchdog over claims that it has deliberately undervalued loans bought off banks.

The Public Accounts Committee has been told that a number of audits and reviews by officials in Ireland, Northern Ireland and in Europe have not identified any issue over valuations.

The committee has said Nama should be given an opportunity to answer claims that it manipulated the price paid to the banks for property loans with a paper value of more than €70 billion .

There have also been allegations that former portfolio managers leaked out information on loan books and assets to outside companies.

It was revealed yesterday that Garda Commissioner Martin Callinan has appointed a senior officer to liaise with Nama to look into complaints.

Nama was set up at the height of the financial and economic crisis in 2009 to clean up the banks by buying property loans from the main Irish lenders at a discount.

It paid about €32 billion for the banks’ property loans as a whole, effectively making it the world’s biggest property management company, but the detail on individual loans was not released publicly.

Fianna Fáil Seanad leader Darragh O'Brien first raised concerns about misbehaviour at Nama earlier this week and has said he will give the Garda documents about the agency following claims of corruption and impropriety.

The Public Accounts Committee has offered to hear Nama’s defence either later today or tomorrow.

PAC chairman John McGuinness said Nama wanted to explain its position. “They are anxious and willing to come before the Public Accounts Committee having heard the concerns that have been expressed and that I have expressed,” Mr McGuinness said. “And they suggested that even if members wanted to bring them in either today or tomorrow they are willing to come.”