Confidential correspondence shows government had all but confirmed Nama chief Brendan McDonagh as its so-called housing tsar – while taoiseach Micheál Martin publicly denied any decision had been made.
In a heavily redacted letter dated late April – which was to be “kept under the strictest of confidence” – a senior civil servant at the Department of Housing said McDonagh had been “identified” as “highly suitable” for the role.
In a later April email Department of Housing assistant secretary Marguerite Ryan wrote there was an “agreement in principle” with McDonagh’s employer to take the job after.
Asked about the appointment the following day in the Dáil by Sinn Féin's Mary Lou McDonald, Martin said, “No decision has been taken as to who will head up that office.”
When People Before Profit's Paul Murphy asked, “How on earth can the government appoint Brendan McDonagh to solve a crisis he created?”, Martin refused to speak about McDonagh.
After the Social Democrats’ Rory Hearne similarly questioned McDonagh’s appointment, Martin preferred to question Hearne’s expertise. “He sets himself up as a housing expert. He is nothing of the sort,” he said.
McDonagh withdrew his name for consideration after The Ditch asked him about his use of aliases in property dealings. The Ditch followed this report with another about McDonagh letting a property for €10,000 a week on a short-term letting website.
‘Highly supportive’ and ‘highly suitable’
The Department of Housing refused to release several key documents about Brendan McDonagh’s potential appointment as head of government’s strategic housing activation office. Others were heavily redacted.
Those released to The Ditch under freedom of information show his appointment had progressed further than government had suggested at the time.
In a 23 April letter marked CONFIDENTIAL, Department of Housing assistant secretary Marguerite Ryan told staff at NTMA, McDonagh’s employer, the Nama chief had “been identified as a highly suitable person to lead this priority area, working in the Department of Housing”.
Ryan also wrote that Micheál Martin was “highly supportive of the prompt establishment of the office and the assignment of the appropriate resources to ensure that this small and focused team can support urgently needed housing delivery”.
Ryan stressed the confidentiality of the letter.
“I would also be grateful if the matter could be kept under the strictest of confidence until everything is confirmed and the government are advised,” she wrote.
Three days later the NTMA wrote to the Department of Housing.
“Thank you for your letter of 23 April regarding a proposed temporary role for Mr Brendan McDonagh in the Department of Housing,” began the email.
The NTMA confirmed it was willing for McDonagh to join the new housing office and suggested how the arrangement would proceed.
“The NTMA, as Mr McDonagh’s employer, is similarly agreeable to the proposal in principle, subject to the details of the arrangement being worked out with the Department of Housing including in respect of the contractual matters referred to in your letter and governance matters more generally.”
“As Mr McDonagh is currently performing the role of CEO of Nama, it is envisaged that the work involved in progressing the proposed arrangement will be done in conjunction with Nama as applicable.”
Two days later on 28 April, Ryan told Department of Housing staff about the “agreement in principle” for McDonagh to take the role.
“While there is a lot of media speculation about salary and arrangements it is important to note that at this stage, we have agreement in principle with the NTMA that Mr McDonagh could take up a temporary role in the department – subject to details being worked out,” she wrote.
When Sinn Féin leader Mary Lou McDonald questioned Martin about the €430,000 housing tsar role on 29 April, Martin told the Dáil, "No decision has been made, so I am not in a position to confirm anything." He similarly refused to answer any questions about McDonagh from Paul Murphy and Rory Hearne.
McDonagh withdrew on 1 May – hours after The Ditch contacted him about his registration of ownership of his Cabra home under the alias "PB McDonnacha" despite taking out a mortgage on the same property in his own name.
He later made several planning permission applications using the name "Padraig McDonnacha" while simultaneously owning other properties in his usual name. The property was re-registered in his own name eight years after he purchased it.
The Department of Housing and the NTMA have been contacted for comment.
