Ex Nama board member says Project Eagle deal was 'inspired'
A former Nama board member has described the controversial Project Eagle deal which allegedly saw taxpayers lose out on €200m as a "superb" and "inspired" transaction, .
John Mulcahy, the former head of asset management for the State property group, made the claim during a meeting of the Dáil public accounts committee today.
Speaking to the cross-party group alongside other former Nama board members as part of ongoing investigations into the April 2014 Project Eagle deal, Mr Mulcahy was asked by Social Democrats TD Catherine Murphy about the nature of the transaction.
However, despite a controversial Comptroller and Auditor General report earlier this year concluding it lost the taxpayer €200m, concerns over a €5m success fee for a then NAMA advisor and two criminal investigations linked to the case, Mr Mulcahy said he fully supports the deal.
The former Nama board member described the mass property sale of distressed assets in Northern Ireland as "superb" and an "inspired" transaction, adding it was the right move at that time.
He said this was specifically because he "never liked" the opportunities in Northern Ireland, there was limited likelihood of growing investments there and that a one-off sale of the entire loan book was in the State's best interests.
"My view would be that to shift the entire Northern Ireland portfolio in one go for €1.3bn was an inspired transaction. I didn't need to see a lot of cash flow to know it was a superb deal.
"I never liked the Northern Ireland portfolio. It was difficult," he told Ms Murphy.
Asked at a later stage of the same meeting, which was also attended by former Nama officials John Corrigan and Eilish Feighan, about the deal, Mr Mulcahy told Labour TD Alan Kelly Pimco's initial Project Eagle bid was a "superb offer" by a "good bidder" with a track record.
"It was a perfect opportunity," he said, as it would "bring in cash" at a time when there was - as Mr Corrigan had earlier confirmed - significant pressure from the European Central Bank on the Republic to sell-out distressed assets.
The PAC's meeting with the NAMA officials is due to end at midday, before a separate discussion with the eventual successful purchaser for the Project Eagle portfolio Cerberus.
