NAMA fails to give specially appointed firms any review work
A number of firms appointed by NAMA to review developer's business plans have yet to receive any work from the agency.
Last June NAMA appointed 38 firms to a panel to review developer's plans, but several firms have yet to be commissioned. It is understood accountants Deloitte have been among the main winners of work, getting a number of the larger contracts.
The panel is a mixture of insolvency companies, accountancy practices, stockbrokers, legal firms and private equity houses. NAMA has complete discretion on how the panel is used and it selects the firms based on past experience and key skills.
NAMA does not disclose the payments for individual reviewers, but one source familiar with its work said fees of between €150,000 and €200,000 per plan would be normal. However, figures in a recent Comptroller and Auditor general report indicated fees may be lower.
Unusually, two of the four main accountancy practices, PwC and KPMG, are not on the panel for work, although Ernst & Young and Deloitte are on the list. While PwC are not on the list on their own, they are in a group with Jones Lang LaSalle.
A number of the firms are led by people who previously worked with banks -- Ernst & Young was previously the auditor of Anglo Irish Bank.
A large number of the business plans involve reviewing loans and businesses previously backed by Anglo Irish Bank and Irish Nationwide.
So far enforcement activity by NAMA has been limited, with only Bernard McNamara facing any enforcement action. NAMA is believed to be taking the view that it is best to work with leading developers for now, rather than taking action against them.
However, this is based on full co-operation and developers signing up to an asset disposal programme.
Several of the largest developers have signed memorandums of understanding, with many of these plans based on rolling up interest and waiting for property prices to recover.