1 0 Nov/Dec 2016
A
N INTRIGUING High Court action which fea-
tured allegations that a leading Kildare
businessman used his political “connec
-
tions” to secure favourable treatment from
NAMA was settled in the High Court in late
October.
The judicial review application taken against NAMA
arose from a dispute over valuable development lands
at Straffan jointly owned by retired developer, Martin
Flattery, and prominent Kildare auctioneer, Arthur
French, before their bank loans were taken over by the
agency.
Affidavits sworn by Flattery contained detailed and
sensational claims of political interference based on
comments allegedly made to him by French.
Flattery’s lawyers argued that NAMA had acted in bad
faith by refusing to complete a deal for the sale of the
lands to Flattery in an ‘off market’ deal earlier this year
and that there was improper interference in the negotia
-
tion process.
The case was settled and the application dismissed
when the parties appeared before Judge Michael White
in late October.
This meant that the various, and sensational, claims
by Flattery against NAMA and French were not tested in
court and remain hanging in the air. NAMA did not reply
to Flattery’s explosive affidavit but instead has bundled
the €25m loans into a larger portfolio and intends to
place them for sale.
Flattery, from Knockaulin, Leixlip, County Kildare had
- before agreeing the recent, confidential, settlement -
sought to regain control of the 35 acres of lands which
were originally funded by Irish Nationwide Building Soci-
ety, and to quash NAMA’s attempts to sell them.
In the affidavits, he asserted that French claimed,
after their business partnership collapsed, that he had
“connections in high places” and a “close relationship
with many high-ranking politicians in Fine Gael” which
he allegedly used to secure favourable treatment from
NAMA. Of course Village has no reason to believe the
truth of any alleged such claims.
The valuable assets, which include the Straffan land
and a four-bedroom property in the exclusive K Club,
were transferred to NAMA in 2011 and Flattery claimed
that he has since submitted no less than ten business
plans to the Agency in his effort to buy and develop
them. His son, Fergal, unsuccessfully made a €3.5m offer
in November 2014 through his house building firm, Mul-
berry Properties.
Flattery claims that he was subsequently informed by
French that he had used his “connections” to ensure that
any proposals made by the developer for the lands would
be rejected.
In December 2015, NAMA called in the loans and
threatened to appoint a receiver and, days later, rejected
yet another proposal by Flattery to develop the site. After
further legal proceedings Flattery settled the case in
early 2016 on the basis that he would be allowed to make
a competitive bid for the lands.
Through his solicitor, Graham Kenny, he complained
to NAMA that while he was being put under severe pres
-
sure, his former partner French had been permitted to
keep his “luxurious K club residence and his lucrative
auctioneering business, yet was not paying anything off
NEWS
French
Connections
Kildare developer alleges Arthur French, auctioneer
and K Club stalwart, claimed to have “political
connections” with Fine Gael that would help
ensure NAMA didn’t accept his proposals
by Frank Connolly
Flattery’s lawyers argued that NAMA had
acted in bad faith by refusing to complete
a deal for the sale of the lands to Flattery
in an ‘off market’ deal earlier this year and
that there was improper interference in
the negotiation process
Nov/Dec 2016 1 1
his debt”. He was informed that French was still
a debtor of the agency but received no explana
-
tion of the nature of its arrangement with the
auctioneer.
Notwithstanding his ongoing engagement
with senior NAMA officials, Flattery alleged that
at a meeting in the Ryevale Tavern in Leixlip last
year, French told him that he would not be given
an opportunity to develop the Straffan site.
Flattery and Mulberry then bid €6.02m for the
Straffan site but, again, this was rejected as an
undervaluation of the landbank. A higher offer
matching a valuation by DTZ Sherry Fitzgerald of
€6.9 for the lands was also rejected. In a letter
in March this year, the agency said that it did not
wish to breach its policy of not doing off-market
sales. This, despite the fact that NAMA had
engaged in discussions with Flattery and his son
for an ‘off market’ sale.
NAMA then disclosed that it had an unsolic-
ited bid, from a different buyer which was in
excess of Flattery’s offer, despite the fact that
the site had not been advertised and had no ‘for
sale’ sign on it. Again, Flattery suspected that
people with more powerful “political connec-
tions” were attempting to obtain the lands from
NAMA.
Flattery initiated the latest judicial review pro-
ceedings on the basis that he had been the
victim of unfair procedures by the agency, which
provided no detailed or evidential reply to his
dramatic claims.
When the parties convened on Thursday 27th
October, lawyers for Flattery and NAMA ham-
mered out a settlement which, although
confidential, apparently allows the agency to
proceed with its sale of the lands by a receiver
as part of a larger portfolio.
Arthur French owes €50m to IBRC following a
series of loans from Michael Fingleton’s Irish
Nationwide Building Society and property and
land purchases in Dublin, Kildare, Galway and
Two Mile Borris in Tipperary. As of 2012 ten of
his properties were in NAMA. The Sunday World
reported that he had “cashed in around €10m
of successful property developments in the last
three years but has failed to pay any of what he
owes to the State”.
Arthur French was not a party to the action
and therefore was not required to answer the
assorted claims in Flattery’s colourful affidavit.
Contacted by Village, French described Flat
-
tery’s claims as “absolute nonsense”. He said he
was not represented in the High Court and did
not know what happened at the latest court
hearing. French denied Flattery’s claim that they
met in the Ryevale Tavern in Leixlip last year.
“I wasn’t in the Ryevale Tavern for years so I
couldn’t have said anything like that to him
there. I never said any such thing about high-
level connections. I cannot comment any more
than that”. The auctioneer said that he is still
dealing with NAMA in relation to his property
debts.
French has enjoyed close relations with the
rich and powerful given his decades long asso-
ciation to the K Club and its wealthy owner,
Michael Smurfit.
A former captain at the club, French once
advised another famous member and former
finance minister, Charlie McCreevy, when he was
settling into his lavish home on lands at Sallins,
county Kildare which was built in the 1990s by
the up-and-coming developer, Sean Dunne.
Dunne also acquired a luxurious K club prop
-
erty and he famously stored his art collection
(including a portrait of Michael Fingleton) and
other memorabilia there before it was raided by
Chris Lehane the administrator of the develop
-
er’s bankruptcy who seized the lot in 2014.
In 2006, then EU Commissioner, McCreevy,
obtained a €1.6m loan from Irish Nationwide to
buy a luxury apartment in the K Club.
Sean Mulryan, a former partner of Dunne in
Zapi Ltd. which developed the massive and
controversial Charlesland development in Grey-
stones County Wicklow, has also been a K Club
property owner.
The K club was the venue for the Ryder Cup in
2006 after Rupert Murdoch managed to secure
the global, hugely lucrative, broadcasting rights
for his Sky Corporation with the blessing of the
government, then led by Bertie Ahern. In 2003 a
spokeswoman for Bill Clinton denied a claim by
Mr French that the former US President had
shaken hands on a deal with him and expected
him to be taking over a new duplex home later
that summer: "It's not true. He has not bought
nor has he any intention of buying a house or
condominium in Ireland”. He had apparently
been dissuaded by his security advisors. Talk
about connections.
NAMA said that it did not
wish to breach its policy of
not doing off-market sales,
though it had engaged in
discussions with Flattery
and his son for an ‘off
market’ sale
French and friends

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