[15/03/2011] Developers’ scam that could cost millions of Euros
A senator from the Irish Republican Party, Fianna Fáil, has revealed how certain NAMA developers have come up with an elaborate scam that could cost taxpayers millions of Euros. He had been contacted by a person, involved in property development, who had been offered to participate in the scheme, which allows a loan borrower to purchase back his loan for a price, significantly lower than the market price. The particular case, which the senator suspects might not be an isolated incident, involved a loan of a loan of €12 million, which was purchased by NAMA for €6m, and then sold to the original borrower for €9m. The scheme allowed the developer, who took the loan to net €3 million profit, which the taxpayers have to cover. After a meeting between the senator and NAMA’s chief executive, NAMA spokesperson has issued a statement, claiming that although they have listened to the senator’s concerns, he had failed to provide any solid evidence that this had happened. The Fianna Fáil’s senator Mark Daly, on the other hand, said that he was not satisfied with the NAMA’s response and has informed the Attorney General and asked him to launch an investigation.
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