Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

File photo of Treasury Buildings in Dublin, where NAMA's HQ is located. Photocall Ireland
BaNAMA Republic

NAMA is paying €200,000 salaries to two indebted developers

Two of the ‘major’ developers who owe millions to the bad bank are being paid €200k salaries – and all can be paid commission.

THE CHAIRMAN of the National Asset Management Agency has confirmed that the agency is paying salaries of €200,000 to two of the country’s most indebted developers.

Frank Daly made the admission to the Dáil’s Public Accounts Committee today as he was discussing the agency’s accounts for last year.

Those two developers were being paid the extra-large salaries because they were “managing multi-billion euro portfolios” – despite the fact that much of these assets could fall into state hands as a result of the developers’ debts.

Daly argued that while NAMA was “reluctant” to pay any salaries of that amount, the alternative would be to appoint a receiver who would charge large professional fees to manage the assets, and who might “not be as clued-in” about the potential value of the assets.

Daly said the agency ordinarily paid salaries of between €70,000 and €110,000 to individual developers, of whom there were between 110 and 120 who were being paid out of NAMA funds.

He declined to name the two developers receiving the larger €200,000 salaries.

Salaries for developers are agreed whenever the agency signs off on their business plans, which require the agency to offer working capital to their businesses.

NAMA chief executive Brendan McDonagh separately told the agency that developers with loans outstanding from the agency are paid a commission if they help to have an asset sold for more than NAMA paid.

If NAMA pays €30m to take over a loan, for example, and the asset is later sold for €35m, the developer is given €500,000 – or 10 per cent – of the difference, even if the loan was originally worth far more than the amount NAMA receives.

McDonagh argued that there was a misconception about NAMA, which always insisted that developers repay loans in full.

Nonetheless, he said NAMA would have to write down the value of the assets under its control – for the second time in as many years.

NAMA confirms pursuit of major developers’ pensions

Andy Warhol work among 14 paintings auctioned by NAMA

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Your Voice
Readers Comments
47
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.