The workings of a committee set up by the National Asset Management Agency (NAMA) to advise in respect of property debts in Northern Ireland came under scrutiny today.
As the former chairman of NAMA spent his third day in the witness box at Belfast Crown Court, Frank Daly was questioned about the Northern Ireland Advisory Committee (NIAC).
One of those appointed to sit an external member on NIAC was 'corporate financier' Frank Cushnahan, who is one of two businessmen currently on trial on fraud charges relating to the sale of the Northern Ireland property loan book held by NAMA.
Cushnahan (83) from Alexandra Gate in Holywood has been charged with two counts of fraud spanning over a period from April 1 to November 7, 2013.
Co-accused Ian George Coulter (54), a former managing partner of Tughans solicitors from Templepatrick Road in Ballyclare, has been charged with five offences over a timeframe of April 3 to December 1, 2014.
Both men have denied all charges levelled against them.
Cushnahan's barrister Frank O'Donoghoe KC continued his cross-examination of Mr Daly today.
He was asked about the composition of the external members who were proposed to sit on NIAC.
Mr Daly confirmed that the then Minister for Finance in Stormont, Sammy Wilson, proposed the names of two men from Northern Ireland - civil servant Richard Pengelly and Neil Adair, who at the time was a NAMA debtor.
Mr Daly said these two "original names were rejected, one because NAMA realised that he was a NAMA debtor and it wouldn't be appropriate, the other because the Department of Finance took the view that because he was a civil servant in the Northern Ireland Executive, that would not be appropriate."
Following this decision, the names of Frank Cushnahan and Brian Rowntree were proposed as external members.
Mr Daly then confirmed that whilst Cushnahan's name was proposed by Sammy Wilson, it was his "understanding" that Mr Rowntree's proposal came from Martin McAleese, who at that time was the husband of Irish President Mary McAleese.
Mr O'Donoghoe then read out a long list of Cushnahan's achievements, his standing as a corporate financier and his links to the Office of First and Deputy First Minister.
The barrister then suggested to Mr Daly "it was well known" to the NAMA Board and to the Minister for Finance in the Republic that by appointing Cushnahan onto NIAC, they were "appointing someone who was at the very heart of Northern Irish government."
Mr Daly said that whilst he wasn't aware of this when Cushnahan's name was proposed, he "very quickly became aware afterwards ... I don't disagree with you, he was at the heart of the Northern Ireland government, as you say."
The jury has already heard that Cushnahan was appointed as an external member of NIAC in May 2010 and was paid €1,000 per meeting.
The nine men and three woman have also heard that in Mr Daly's view, Cushnahan should have disclosed his interest regarding his involvement with UN investment firm Pimco, who in 2013 were potential purchasers of the £1.1bn Northern Ireland loan book portfolio.
Mr Daly was asked about a NIAC meeting which took place on October 7, 2013.
By that stage NAMA was already aware of Pimco's interest and when asked why a potential deal of such significance wasn't on the agenda of NIAC's meeting, Mr Daly said at that stage it was a "very recent development" and was scheduled to be discussed at a meeting of the NAMA Board three days later on October 10, 2013.
Mr Daly also confirmed that between 2010 and 2013, there was "very little" interest in purchasing the Northern Ireland debtors portfolio - which became known as Project Eagle - in its entirety.
Ultimately, the deal with Pimco fell through in March 2014 when NAMA found out about Cushnahan's involvement.
The trial continues.
