Three Gannon building firm directors paid €270,000 despite massive losses
Published 05/01/2013 | 05:00
Three directors of "Maple 10" developer Gerry Gannon's main construction business were paid €270,000 in 2011 despite losses of €12m at the NAMA-linked company, according to accounts just filed.
The pay to directors was down from €330,000 the previous year when similar losses were recorded, according to the accounts for Gannon Homes.
Gannon Homes was one of the country's biggest house-building firms during the boom.
Gerry Gannon himself became the subject of controversy when RTE's 'Prime Time' filmed the developer lugging Brown Thomas shopping bags to his luxury jeep in 2010, after loans from his property companies had been transferred to state-controlled debt agency NAMA.
It was also revealed at that time that ownership of a number of properties had been transferred to Mr Gannon's wife, Margaret, following the property bust.
In July last year it emerged that Mr Gannon was one of the so-called Maple 10 group of developers who bought shares in Anglo Irish Bank in 2008, with loans from the lender.
Accounts for Gannon Homes between 2006 to 2009 show that Mr Gannon and his two colleagues shared remuneration of €6.6m over the four years before the company's loans were transferred to NAMA, including an exceptional pension payment of €1.5m in 2006.
Losses at Gannon Homes were €141m at the end of 2011, according to the latest set of accounts.
At the end of December 2011, the firm owed €208.5m in bank loans and overdrafts, mainly to state controlled NAMA.
According to the accounts, Mr Gannon believes that the debts will only be repayable when stalled building projects are completed and units sold off.
Directors were of the view that "the outlook for the business in the short term is poor".
In the meantime, the belief is that NAMA will not seek to close the business by calling in the cash it is owed.
"The directors are working with NAMA on agreed business plans and are confident that NAMA will support these plans to enable the company to trade through the current difficult market conditions," according to a directors' report filed with the accounts.
In the meantime, some units have been rented on short lets to generate cash and "maximise value from the assets until the capital values return to a positive growth pattern".
The accounts show that Mr Gannon was paid €832,000 by Gannon Homes in the form of rent between 2006 and 2010, but waived any rental income from the company in 2011.
The filings also show that an unidentified director advanced a loan of €2.3m to the firm during 2011.