National Assets Management Agency to recover only €34.1bn on developers debts of €74bn it acquired

Last Thursday  Michael Noonan, Finance Minister, replied to a question in the Dail from Paul Murphy, AAA/PBP, about the final amount which the National Assets Management Agency is expected to recover on its debts relative to the €74 billion of loans it acquired and the amount recovered to date by year. 

 Mr Noonan replied that  "NAMA originally paid €31.8 billion to acquire a €74 billion loan book, comprising of 779 debtor connections. I am advised that, as at 31 March 2016, 442 debtor connections with a par debt of €18.5 billion had exited NAMA. This comprises debtor connections that reached a final agreement with NAMA and debtor connections whose loans were sold. 44 debtor connections have repaid their par debt in full. I am further advised that the 442 debtor connections have repaid €9.6 billion to the Agency.

Mr Paul Murphy  explained Mr Noonan's reply in his facebook page

Paul Murphy AAA/PBP

Paul Murphy AAA/PBP

"The scale of the write-off illustrated by these figures is immense. The fact that of 442 debtors exiting NAMA, only 44 debtors have paid their debts in full proves the fact that NAMA has been used as a life support machine for developers and an agency for bailing them out.

With a collective 398 debtors having had €8.9 billion in write off, that means an average write-off of over €24 million for each developer, at a time when ordinary mortgage holders and tenants of repossessed buy-to-lets are being made homeless. To cap it off, the state isn’t even ending up owning these debtors’ properties but has been selling them on to vulture funds whose business model is to make a 30% profit in three years – another potential loss to the taxpayer in effect.

The answers also state that NAMA expects to make a €2bn ‘surplus’ relative to the €31.8bn it paid for the loans with a par value of €74.1bn. In other words, by the time it winds up it will have written off €40bn in debt - €8.9bn has been written off so far, leaving €31bn to go. At the time NAMA was set up, then Finance Ministser Brian Lenihan promised that the developers would be pursued for every penny they owed. Now we’re supposed to swallow a €40bn loss as a ‘surplus’ or profit.

Instead of being this life-support machine for developers, NAMA should be democratised and transformed into an agency to deliver social and affordable housing, using, for example, the over 1,100 hectares of residential land NAMA controls in Dublin alone – enough for up to 110,000 homes."

see Oireachtas debate: Thursday April 14, answers 72-75

Mick Wallace, Ind,  speaking in the Dail on April 14, on Housing Crisis, NAMA and Vulture Funds.

Uploaded by wallacemick1 on 2016-04-15.


To Journalists

The opening address at last week’s Journalism In Times Of Crisis conference at the University of Limerick was given by Gemma O’Doherty.

Gemma was fired from the Irish Independent while investigating the quashing of then Garda Commissioner Martin Callinan’s penalty points.

Gemma O’Doherty at the University of Limerick last week

Gemma O’Doherty at the University of Limerick last week

“I’d like to thank Henry Silke and University of Limerick for organising and hosting this important conference. Reporters who work at the coalface of investigative journalism in Ireland need the support of our colleagues in academia, especially when it is so lacking within the media itself.  These are very difficult times for journalism in Ireland.

Those of us who investigate corruption in public office make ourselves and our sources extremely vulnerable to those in power who would intimidate us, monitor our activities, threaten our safety and try to silence us.  In return, we receive almost no support.

We work in an era where a culture of fear and timidity stalks many of our newsrooms. It has bred a generation of journalists who behave less like dogged agents of the public interest and more like compliant diplomats and spin doctors constantly looking over their shoulders and towing the party line.

They have forgotten or chose to ignore the true function of our still noble vocation: to hold power to account, to comfort the afflicted and afflict the comfortable, to defend the public’s right to know, to seek the truth and report it.

In this new media landscape where many Irish journalists can no longer do their job without fear or favour, the greatest loser is democracy. A robust, independent, adversarial press is the lifeblood of a functioning democracy and a free society.  In Ireland in 2016, we have nothing close to that.

When Enda Kenny came to power in 2011, he promised a new era of integrity, accountability and transparency. But as a journalist, when you ask questions of a state press office, you hit a brick wall, more often than not.

I would argue that press freedom and the ability of the media to hold power to account is more compromised today than at any other time in the history of the state.

This has no doubt contributed significantly to the crises we have in policing, health, housing and water services.

This new era of cowering journalism has come about largely, but not only, because so much of the media has been allowed to fall into the hands of so few.

The fact that many of us now refer to the biggest owner of Irish media as ‘Redacted’ speaks volumes. One big voice has far too much power and prominence in our small country.

Not all media moguls exert the chilling effect that some do over their newsrooms. I spent most of my 17-year career at INM working for Tony O’Reilly. He invested in decent journalism and good writers. He understood newspapers, and while he was not perfect, by and large he left editors to get on with it.

And then there is Denis O’Brien.

Denis O’Brien, who attempted to bring in a so-called journalists’ charter that challenged the right and duty of reporters to engage in adversarial journalism.  

Denis O’Brien who was reported to the United Nations for making legal threats against journalists.

Denis O’Brien who last year managed to silence most of the Irish media from reporting a speech in our parliament.

Denis O’Brien who threatened to sue a website whose sole purpose is to engage in satire, that most precious form of free speech.

Is it healthy for democracy that someone who takes such an interest in silencing our right to speak be in control of so much of our media? I don’t think so.

I don’t make any distinction any longer between RTÉ and the O’Brien-owned media. If anything, I would hold more disdain for the state broadcaster because it is failing its public service remit so blatantly and really does deserve the name it is more commonly known as on social media: ‘RTEBIAS’.  It seems to disregard the fact that it is accountable to the public who pays so that it may exist.  There are so many examples of this, it has almost become the rule rather than the exception.

We saw it in its often farcical coverage of the general election which undoubtedly affected the final poll; in its bizarre reporting of the Mairia Cahill case, Slab Murphy and the Special Criminal Court; in its failure to cover allegations about Finance Minister Michael Noonan and his role in the foster care scandal; in its refusal to cover cases of gross corruption in our garda force including the cover-up of children’s murders.

There is no doubt that a culture of institutionalised complacency now dominates RTÉ where some presenters earn more than David Cameron and Barack Obama, and certain journalists see themselves as celebrities, appearing on the cover of Hello-style magazines and red carpets in designer dresses.

When they are not interviewing each other, they’re rolling out the same clique of voices and seeking to rehabilitate people who’ve been disgraced in the public eye.

At the time of my firing, I was immersed in many stories about corruption and wrongdoing in the criminal justice system. I was working with bereaved families whose loved ones had been killed in violent circumstances.

These families were alleging grave wrongdoing in the gardai but when they approached certain journalists in establishment outlets, they said their cases were not being taken on board and they got the cold shoulder.  In most cases, their stories were compelling but the families were left with a sense of abandonment that the very people who should have given them support failed them.  In doing so, they also failed the public interest.

One of the cases I’m investigating is that of Mary Boyle.  Ireland’s youngest and longest missing person was six when she was murdered during a visit to her grandparents’ remote farm in Donegal in 1977.  The authorities have failed to bring the chief suspect to justice amid allegations of garda corruption and political interference in the case.  In March, her twin sister Ann and I visited the US Congress to lobby for justice for her as that door has been firmly shut here.

Despite countless requests to RTÉ to cover this important visit, they refused to inform the public about it over the airwaves.  Was this out of fear that it might bring the Phoenix Park into disrepute and shine a light on corruption in the gardai? One has to wonder.

 So what is the effect of an obedient, cowardly media on society?  Joseph Pulitzer once said that a cynical, mercenary press would in time produce a people as base at itself.  There has certainly been an attempt by some segments of the media to dumb down the population, and when citizens start to challenge authority and engage in dissent, they refuse to report those challenges fairly.  A vivid example of that has been the bizarre coverage of the Irish Water movement and the so-called ‘sinister fringe’.

 [This] week, a journalism conference in Kerry will be opened by Noirin O’Sullivan who has presided over a litany of scandals in her time as Garda Commissioner. Joan Burton and Frances Fitzgerald are among the other speakers. That really says it all.

 We need to smash the cosy cartel that exists between the press, power and the police in this country because it is so damaging to the public good.

I would like to mention some notable exceptions in the Irish media who do try to prioritise the interests of democracy in their journalism: The Sunday Times,  IrishExaminer, Irish Daily Mail and Irish Times, and, of course Broadsheet and Phoenix.

But trust in media is understandably on the wane because the public know that so many of the issues that matter most to them are being skewed or ignored.  However, there is a bright side to all of this. This is a very exciting time to be a journalist.

As many traditional newsrooms become more focused on protecting plummeting revenues and their friends in power, investigative journalists are finding new ways to tell stories and release information and high quality content into the public domain by cutting out the middle man.  The internet has been our greatest resource in this regard.  In my own area – corruption in the criminal justice system – we have seen how documentaries like ‘Making A Murderer’ can have such a huge impact and do a lot of public good in the process.

Publicly-funded investigative websites are beginning to challenge old media where editors hold off running stories for fear of upsetting the establishment and denying the public their right to know.  Here in Ireland, a team of our finest investigative reporters have set up a new website called Righttoknow.ie to push for transparency and accountability in public life.

We must embrace this change and realise it is for the betterment of our profession and society.  But we also need to start looking at our media colleagues and asking how the journalists of the future will protect the public interest. Will they be boat-rockers who challenge authority and dig until they get answers? Will they have the tenacious rat-like cunning that proper editors once demanded of their reporters? Will they chase yarns as if their lives depended on it?

Hopefully all of the above but it is the job of our universities to nurture those characteristics in them.  I’ll finish with the words of Joe Mathews, a former reporter with the LA Times, when he spoke about how the public interest was so endangered by the crisis in journalism.

‘Much of the carnage of the ongoing media industry cannot be measured or seen. Corruption undiscovered. Events not witnessed. Tips about problems that never reach anyone’s ears because the ears have left the newsroom. With fewer watchdogs, you get less barking. How can we know what we will never know?’

Our profession is on its knees, but it is worth fighting for. We have a duty to fight for it. We need to stand up for courageous journalism whose primary focus is the public interest.  We need to read it, to buy it, to support it, because without it, the health of our democracy will remain in terminal decline.”

Original article: Broadsheet, Apr 12, 2016


The battle of Irish Water. Another reason to heed protesters.

By James Quigley,  part one of a two part article

 

This article centers around Irish Water Ltd.  It questions the political, economical and social agendas of the some of the playmakers behind the multi billion euro project and criticises the ever growing influence they have on the Irish political system. 

The first article is a more generalised synopsis of what I believe are serious issues of political and social manipulation surrounding the setting up of the semi state Irish Water company.  The second article will be more specific and will zone in on some of the playmakers' involvement in the saga,  an elitist club of academics, professionals and multinationals forging what could be described as the equivalent of a masonic fellowship.

 


The 'one-arm bandit'  may seem a bit misleading. It suggests an Irish system as a game of chance. However, the reality could not be further from the truth. What one hand giveth, the other taketh away. All gaming machines in fact are rigged. Gambling generally is manipulated to give the owners the upper hand, the odds and permutations are studied to give optimal profit. They are calculated to draw you in, keep you hooked but extract as much cash as they can. Otherwise they would not be in business. Everything looks legit but in reality it is an illusion, a trick, the razmataz of tinsel town.

 

Largest project in history of the state

In 2014 Bord Gáis Éireann described Irish Water in a submission to the Joint Oireachtas Committee on the Environment as “one of the largest reform projects in the history of the State”.

Another interesting report and one which is at the heart of this discourse, 'Delivering Ireland's Water Services for the 21st Century' was prepared in 2011 by The Irish Academy of Engineering and Engineers Ireland. . It was presented to the Oireachtas, by Mr Gerry Grant, Managing Director, RPS.  Incidentally Mr Grant is now Managing Director of Irish Water Ltd.

It is not what the report advises that is important but it is the members of the report's taskforce that is revealing. It includes  RPS, Engineers Ireland, Irish Academy of Engineers,  State and Co Council employees and various individual private consultant firms.  We will focus on these groups in the second part of this article.  However, this group represents a quintessential example of the establishment joining forces with multinational corporations to set or influence the political and social agenda.  

This multi billion euro Irish Water project,  with approx €11bn of assets and nearly the same again in running costs, has indeed unearthed a can of worms.  Intrigues abound. Not only is it because of the vast amount of money involved but probably more so because Irish Water is what has been described as the 'largest reform project in history' that has attracted the interest of a myriad of multinational corporations along with  indigenous entrepreneurs and academics. Like a herd of sharks,  they have tasted the potential of this bonanza.

To some the Irish Water project may be  Shangri-La but to a lot of Irish people  it epitomises how our political, economical and social system has been systematically manipulated by global and indigenous interests for their own ends.

From Irish Water's embryo stage some 16 years ago right through to the Troika supervised formation stage,  2012-2014, to the present day political impasse,  Irish Water Ltd has a history of secrecy, controversy and  political manipulation.  It has seen the  involvement of  high powered multinational corporations and local Irish businesses  in the affairs of the state.  It is this relationship between the establishment, politicians, local businesses, academics and partisan group and  multinationals corporations  that is the driving force behind the Irish Water project.  It is this relationship that is at the heart of the controversy where one could nearly describe the outcome as a coup. 

The methods and techniques used by these elite forces are insidious, pervasive and relentless.  Because of present day economics Governments and countries are entrapped by the lure of employment and a quick GDP fix. It is a catch 22 situation where the elite use politicians and vice versa politicians use multinationals corporations to further each others agendas. Instead of pursuing quality of life, self sufficiency and indigenous employment we are sucked into a dependency of multinational corporations.  These corporations are by their very nature  transitory, adversarial, secretive and self-serving and extremely powerful. They have no allegiances other than the stock markets and profits. Barriers to trade and borders are broken down,  political systems are manipulated and politicians bought and sold.  

 Cultural diversity and political systems are harmonised to attain 'economy of scale', the be all and end all of the their economic structure. We all have to be the same, automatons, with the same needs and outlook in order to service this multinational imperialistic megalomaniac machine.


Great legions of lobbyists

Nothing as far as possible is left to chance, apart, of course, from the roulette wheel of the stock exchange.  Countries, political systems, market trends and the public have all been thoroughly assessed, researched and analysed. A methodology and model is developed to conquer the market.  Many of these corporations and even individuals have ready access to more cash than individual countries.

All our political, legal, educational institutions are used to further multinational corporations'  goals . Great legions of lobbyist, solicitors, engineering, planning and economic advisers are employed to copper-fasten their agenda.

The illusion of democracy and freedom is churned out through the controlled media, puppet politicians and omnipotent public relations firms. We are led to believe that all the endeavours are for the citizen's own good and the benefit of society.   There is never any mention of the vast profits to be made or the  control of political systems.  The public are constantly fed the idea of democracy and are told that they have a choice, a say in their affairs.  Half truths and diversions hide the fact that the illusion of democracy comes around every 5 years where we dutifully hand over the levers of power to political prostitutes and the sugar daddies. It is a merry-go-round, a house of mirrors, flashing lights and the jingle of change. Maybe we might walk away with the teddy bear or maybe nothing at all.

Ireland, it's people and it's politicians have been thoroughly assessed, surveyed, our habits and markets researched and analysed.  The elite have produced a model and a methodology to suit their philosophy. Such a model is Irish Water Ltd and an unmerciful propaganda war is now raging to consolidate the company and philosophy into the Irish system.

 Multinational  feast, of course, done through a competitive procurement process

Bord Gáis was chosen to oversee this project. In their 2014 submission to the Joint Oireachtas Committee they stated “Bord Gais was given a mandate to establish Irish Water as a key part of the water reform programme. We set out for Government our approach for delivering Irish Water back in January 2012......... Bord Gáis set out clearly, from the outset, that while the core capability to define what was required to establish Irish Water existed within Bord Gáis, it would require the use of specialist service providers to help implement this programme. In essence the Bord Gáis team in conjunction with secondees from the Local Authorities and the Department specified what was required. Bord Gáis used its experience and its existing systems and processes to define the requirements for Irish Water. ”  

The external services  and the costs were: IBM €44.8m, Accenture €17.2m, Ernst & Young €4.6m and KPMG €2.2m.

Up to 2014 Bord Gáis spent  the guts of €2bn including the above expenditure, their own running costs and that of the metering contracts of over €1.2bn. All metering contracts went to outside multinational companies including  Murphy Group, Coffey Northumbrian Ltd and GMC Sierra.  GMC Sierra a subsidiary of the infamous and former Siteserv, (now Actavo).  Last year Eurostat calculated that Irish Water expenditure to be €800m per year over a 8 year period until 2021. This figure will probably reach €1bn per year.   Incidentally there is no mention in the report of the Siteserv controversy or the offer made by Siemens to provide meters at a much cheaper price.  No everything was above board and contract awarded  "through a competitive procurement process".

Bord Gáis Éireann has since been split up, the lucrative part privatised and sold to Centrica plc in 2014. The unprofitable part is now called Ervia, a semi state company. Irish Water Ltd, apparently is a subsidiary of Ervia. Even Eurostat, an EU statistical office was not able to define the make up of Irish Water Ltd. Isn't it ironical that Bord Gáis the parent company who used it's own model as a template for Irish Water has been privatised and sold off. A bad omen for the future.

So you believe we have a democracy?

A quote from Ernst & Young, one of the external corporations hired by Bord Gáis in 2012 to set up Irish Water, “We have one strong global leadership team that sets one single global strategy and agenda. To ensure we are efficient and effective, we have organized our legal entities into 28 similarly sized business units, called Regions, in terms of both people and revenues. These Regions, almost all of which are purposely not single countries, are grouped into four geographic Areas:” 

What is Democracy?

According to political scientist Larry Diamond, democracy consists of four key elements:

(a) A political system for choosing and replacing the government through free and fair elections; (b) The active participation of the people, as citizens, in politics and civic life; (c) Protection of the human rights of all citizens, and (d) A rule of law, in which the laws and procedures apply equally to all citizens.

Democracy, he says, “must improve where it already exists before it can spread to other countries.  He believes solving a country’s governance, rather than its economy, is the answer. Every democratic country needs to be held responsible for good governance, not just when it suits them."

"Without significant improvements in governance, economic growth will not be sustainable.  For a democratic structures to endure – and be worthy of endurance – they must listen to their citizens’ voices, engage their participation, tolerate their protests, protect their freedoms, and respond to their needs.” The Spirit of Democracy

Shane Ross magnificent Dáil speech

Irish Water symbolises what is so wrong with Ireland today and so wrong with this government. It embraces so many wrongs and so many attitudes that so many recent that it has united unusual and unlikely forces against this government and Irish Water” he goes on to admonish the government of political appointments to the board of Irish Water.”  Shane Ross, 2014, Dáil Éireann

 

Eddie Hobbs Deep State

Democracy in Ireland partially exists every few years at election time when politicians and media make a little fuss and somehow cajole you into believing their myths. What they do not tell you or you don't seem to get is that you really do not have any power. Real power only exist in what Mr Hobbs calls 'Deep State'.”  Buncrana Together

 

Can the battle for democracy be won?

Taking on such a force may seem futile.   However, there is a chink in the elites' armour, an Achilles' heel.  This vulnerability is the absolute arrogance,  the flaunting of power, wealth and prestige, the condescension  and the manipulation of political processes and not least corruption.  Coupled with that there is a massive upsurge inpopular protest in Ireland against what is seen as corruption and wanton neglect.  It is this political awareness, the amount of contempt and the anger against the Irish Water project and the forces behind it that has the potential to put a stop to the elite's plans.

Somehow democracy has to be salvaged and wrested from the grips of the power brokers. The last stand could be the battle against Irish Water Ltd.   If the Irish Water model succeeds then it would be fair to say that corruption and anti democratic forces will have achieved their goals.

Bord Gáis 2014 Submission to Oireachas: https://www.water.ie/news/bord-gais-expertise-to-sa/Irish-Water-Submission-to-Joint-Oireachtas-Committee-14th-January-2014.pdf

Irish Academy of Engineers and Engineers Ireland report: Delivering Irelands Water Services for 21st Century