If I remember correctly, when Nalia is kidnapped, the man who approaches you tells you to talk to Barg by the docks. When you talk to Barg, he tells you about the guy in the basement of the Five Flagon's Inn. That guy attacks you and upon his death you find documents incriminating whats his name. Then you go to his house in the government district, the door is now unbarred and find his accouting books. If you have done these things, your dialogue list should have options to tell him about all of them which results in an investigation, and Nalia is freed.
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