A fraud trial linked to the sale of the Northern Ireland loan book today heard how a US investment firm had 'no choice other than to gracefully withdrawn' from a £1.1bn property deal.
A solicitor from the National Asset Management Agency (NAMA) was called to give evidence at Belfast Crown Court, where two businessmen are currently standing trial.
Frank Hugh 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 the charges levelled against them and it's the Crown's case that they were both involved in brokering a deal to purchase the Northern Ireland loan book and were set to benefit from a multi-million pound success fee.
It's also the Crown's case they acted dishonestly and withheld information.
After being called to the witness box today, solicitor Alan Stewart was asked a series of questions regarding events in March 2014 by Crown barrister Jonathan Kinnear KC.
Mr Stewart said he began working for Nama in August 2010 and that by 2014 he was a senior divisional solicitor.
He was then asked about US investment firm Pimco, who at the relevant time has expressed a serious interest in purchasing the Northern Ireland portfolio in its entirety.
Mr Kinnear enquired about both a conference call which took place on March 10, 2014 involving representatives from both Pimco and Nama and about handwritten notes Mr Stewart made about what was discussed on the call.
Mr Stewart said the success fee was mentioned and one of the representatives from Pimco asked if Nama was aware of Frank Cushnahan potentially being one of three beneficiaries.
Referring the handwritten notes, Mr Stewart confirmed that Nama was not aware of this.
He added that whilst he did not know Cushnahan personally, he was aware Cushnahan was an "external member of the Northern Ireland Advisory Committee."
The jury has already heard this committee was set up by Nama to advise in respect of property debts in Northern Ireland and that Cushnahan was an external member from May 2010 to Novembeer 2013.
The witness was then asked what else was discussed on the conference call and Mr Stewart confirmed concerns were raised about whether the deal could proceed.
The following day, the NAMA Board held a meeting where the only topic of discussion was the conference call.
Confirming this was "the focus of the meeting", Mr Stewart said the success fee was discussed, as were the three potential beneficiaries - Cushnahan, Tughans solicitors in Belfast and a law firm in London who had introduced the deal with Pimco.
Mr Stewart confirmed that during this meeting, NAMA's board members raised concerns about the payment of the success fee to Cushnahan and whether the Pimco deal was fatally flawed as Pimco may have benefitted from inside information as a result of Cushnahan's involvement, which was not disclosed.
The Crown barrister then queried Mr Stewart about another conference call between Pimco representatives and Nama on March 12, 2014 and when asked what happened, Mr Stewart said Pimco felt they had 'no choice other than to gracefully withdrawn.'
Two days later, a letter was sent from Pimco confirming its official withdrawal from the process.
Mr Stewart was also cross-examined by Cushnahan's barrister Frank O'Donoghoe KC.
The barrister spoke about the "allegation" made on March 10, 2014 about "former" external NIAC member Cushnahan receiving "some form of payment" for the deal and whether or not there was a discussion within Nama's legal department about this "potentially very serious matter."
Mr O'Donoghoe then asked Mr Stewart "who called Mr Cushnahan to ask him if it was true?" and he replied that the priority that day was making sure the Nama board was informed.
After the barrister asked "surely somebody decided to pick the phone up to Mr Cushnahan and ask him if it was true or what were the circumstances?", Mr Stewart said that from Nama's end, he didn't think that ever happened.
Mr Stewart was also queried about the Nama Act 2009 and if anyone from Nama's legal department ever reported the matter regarding Cushnahan to An Garda Siochana and he replied "Not that I'm aware."
Mr O'Donoghoe also questioned the witness about the views held regarding NIAC.
He agreed that he had heard other Nama Board members and Committee members refer to it as a 'talking shop' and a 'sop to the Northern Ireland administration' and that it 'served no purpose other than political collaboration.'
