Capita to land lucrative NAMA deal
Published 11/02/2010 | 05:00
Capita Group, a major UK plc famous for operating London's congestion charge, is set to win the contract to monitor how the Irish banks manage thousands of property loans on behalf of NAMA, the Irish Independent has learned.
The company's Irish subsidiary, Capita Asset Services, which has offices in Mullingar, will be named shortly as the winner of the contract, which is expected to be sizeable in terms of value.
NAMA is headed up by Brendan McDonagh, a senior executive from the NTMA.
Capita Asset Services will monitor how the banks manage smaller loans which form part of NAMA. According to the NAMA business plan, administrative costs annually for NAMA could come to €240m.
Capita Asset Services counts among its directors Arnold O'Byrne, the former chief executive of Opel Ireland.
The NAMA project is currently on hold awaiting EU approval. McDonagh has said that once the EU gives the green light, loans can start transferring from the banks to NAMA.
Major discounts or "haircuts" on the book value of loans can be anticipated, with Anglo Irish Bank and Irish Nationwide likely to suffer the severest writedowns, according to sources.
It is understood Capita will work as a "master servicer" for those loans that continue to be managed on a day-to-day basis by the banks themselves. This is because only the top 150 borrowers will be managed by NAMA itself.
The banks will continue to conduct routine loan administration work and each one of them will establish a separate NAMA unit to manage loans. Staff in the units will be bank employees but will work exclusively on NAMA loans.
Capita Group Plc describes itself as the UK's leading outsourcing company, with contracts across the public and private sectors.
It has occasionally had brushes with controversy, in particular for failing to meet performance targets in relation to the collection of London's congestion charge.