Cantillon: Stakes high as PAC hearings on Project Eagle begin

A lot is at stake at the Public Accounts Committee (PAC) hearings into the Project Eagle saga, starting on Thursday and likely to continue with a number of further hearings over the coming weeks.

The stakes are high for Nama and for the Comptroller & Auditor General as they fight out whether the C&AG’s criticism of the sale process of Project Eagle – specifically its contention that it may have cost the exchequer more than €200 million – is justified.

Previously, the C&AG’s word has rarely been questioned by the public sector bodies it examines. This time it’s different. Nama’s high-profile board has signed off on a full-frontal attack on the C&AG. On the other hand, the C&AG presumably will defend his calculations and assertions. A lot is at stake on both sides.

As if that wasn't enough, we have the prospect of the Minister for Finance, Michael Noonan, appearing at a subsequent hearing. The political questions relate to what the Minister knew and when and what interactions he had with Nama and politicians in the North.

There is much at stake for the PAC, too. It will have to bear in mind that the matters it is looking into are also the subject of an inquiry by a number of investigative agencies, including the UK's National Crime Agency (NCA). The NCA told the Stormont finance committee that it would prefer if it held off its hearings on Project Eagle for fear of prejudicing its inquiries.

The PAC operates in a different jurisdiction, of course, and it has said that it will seek to avoid anything that might prejudice future criminal action. But in a murky story where all the different bits are collected, this will not be easy.

The PAC is thus treading on eggshells. And given the strongly critical opinions expressed by a number of its members about Nama already in recent weeks, it will also need to show that its questioning – and conclusions – are made without fear or favour.

The record of parliamentary committee inquiries here in recent years has been decidedly mixed.

In delving into a deal in another jurisdiction, surrounded by allegations being investigated by criminal agencies, the PAC’s job will be far from easy.