C&AG says he cannot be absolute on Project Eagle sale losses

The Comptroller and Auditor General (C&AG) has said he cannot be absolute on the loss of money on the sale of Project Eagle.

Séamus McCarthy said the figure contained in his report on the sale of the Northern Ireland portfolio could be altered upwards or downwards.

The recent report by the CA&G found the National Asset Management Agency (Nama)'s sale resulted in a loss of €220 million to the taxpayer.

Speaking before the Public Accounts Committee (Pac) Mr McCarthy said he could only determine the probable loss and there could be a margin of error.

He robustly defended his report into the sale of the Northern Ireland portfolio insisting he would not change his findings or the content.

Mr McCarthy said four draft reports were sent to Nama for consideration and changes were made on their request.

He said: “Clearly there has been disagreement all along the way. My duty is to examine and report. I felt obliged to report.

“The obligation is on me to give my opinion. This is my opinion.”

Nama has taken issue with a number of aspects of Mr McCarthy’s report claiming the staff at the office of the CA&G did not have the skills required to assess the loan sale.

Mr McCarthy confirmed it does not have expertise in markets but insisted it has audited the Central Bank and the National Treasury Management Agency.

He said the C&AG audits the Health Service Executive but does not have specific skills in the medical area.

Mr McCarthy said a team of qualified accountants with significant audit and evaluation experience compiled the report.

He said two senior managers from the UK National audit reviewed his findings and a former secretary and director of audit of his office also examined the content of the report before it was published.

He told the Pac his office is compiled of career civil servants who do not have market experience.

Mr McCarthy said: “I do not believe we are without relevant qualification.”

The C&AG confirmed to the committee he refused a request by Nama to meet the members of their board.

He said he felt it would have been inappropriate to hold such a meeting and could not base his report on conversations.

Mr McCarthy stood by his finding that Nama should have acted when it became aware that it became aware of a proposed fee sharing arrangement.

Nama was informed in March 2014 that a member of the Northern Ireland Advisory Committee Frank Cushnahan stood to benefit financially from the sale of the portfolio.

Mr McCarthy told the committee this was a significant issue that Nama needed to be held account over.

He said the first step the agency should have taken was to contact Mr Cushnahan.

Nama was not legally obliged to do that but it would have been good practice.

The C&AG said he has no concerns about the wider operation of Nama and described the agency as a good firm with good structures.