The former chairman of the National Asset Management Agency (Nama) spent a second day in the witness box at Belfast Crown Court on Thursday where he was questioned about relevant legislation.
Frank Daly, who held the position of chairman of the Nama board for a decade, was asked about the Nama Act 2009. This piece of legislation was enacted by the Irish Government following the property crash and banking crisis in the Republic in 2008.
Two men are currently standing trial on fraud charges relating to the sale of the Northern Ireland property loan book held by Nama.
Ian George Coulter (54), a former managing partner of Tughans solicitors from Templepatrick Road in Ballyclare, Co Antrim, has been charged with five offences over a timeframe of April 3rd to December 1st, 2014.
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Co-accused and former corporate financier Frank Hugh Cushnahan (83), from Alexandra Gate in Holywood, has been charged with two counts of fraud spanning a period from April 1st to November 7th, 2013.
Both men have denied all the charges levelled against them.
During his second day as a witness, Mr Daly was cross-examined by Mr Cushnahan’s barrister, Frank O’Donoghue KC.
Due to his vast experience, in May 2010 Mr Cushnahan was appointed as an external member of the Northern Ireland Advisory Committee (NIAC), which was set up by Nama to advise in respect of the property debts in Northern Ireland.
It is the prosecution’s case that Mr Cushnahan was involved with US investment firm Pimco which, at the time, was a potential purchaser of the entire loan book portfolio.
Mr Daly has already told the jury it was his view that Mr Cushnahan had a legal duty to disclose this under a section of the Nama Act 2009.
On Thursday, Mr O’Donoghue suggested to him the legislation “does not cover Mr Cushnahan at all” as he was an external member of NIAC and that Nama “knew that”.
Mr Daly was questioned about the first NIAC meeting which was held at the Ballymascanlon Hotel in Dundalk on May 12, 2010. He confirmed that both he, Mr Cushnahan and others were present.
Mr O’Donoghue then raised a section of the Nama Act regarding disclosing confidential information and said it was stated at the meeting that this section of the act “does not appear to apply to advisory committees”.
Mr Daly said that while he could not recall who stated this, “it was obviously said at the meeting”.
He confirmed that was the understanding “at that time”, then added: “Subsequent to the meeting we are talking about, Nama decided to get legal advice.”
Mr Daly said following this legal advice, it was deemed that the relevant section of the Act “did apply to somebody who was performing duties on behalf of Nama and that the members of NIAC were regarded as people who were performing duties on behalf of Nama”.
At the conclusion of Thursday’s hearing, Mr Daly was told to return to court on Monday when his cross-examination by the defence will resume.
Madam Justice McBride then addressed the jury and after warning the nine men and three woman not to talk to anyone about the case or carry out any research, she thanked them for their service and said: “I will see you all again next Monday.”
