Opposition wants Nama inquiry to be expanded

Opposition leaders are to seek a broad inquiry into the operations of Nama, extending beyond the sale of its Northern Ireland loans, though this is likely to be resisted by the Government.

Taoiseach Enda Kenny met leaders of Opposition groups at Government Buildings yesterday and quickly agreed that a statutory inquiry should be set up into Project Eagle, the controversial sale of Nama’s Northern Ireland loan book.

A report by the Comptroller and Auditor General found the sale probably resulted in a loss of over €200 million to the taxpayer. It also raised questions about the sale process and criticised Nama for its management of conflicts of interest among its advisers.

Fianna Fáil leader Micheál Martin said yesterday a broader inquiry was "possible, maybe warranted" but the initial focus should be on a narrower inquiry, as favoured by the Government. He said any inquiry could be expanded if new evidence came to light.

Terms of reference

Opposition leaders agreed to revert to Mr Kenny in the coming days with suggestions for the exact legal format and terms of reference, which are expected to be complicated by the cross-Border nature of the subject.

The matter will be debated and voted on by the Dáil after it returns later this month.

Although the inquiry will be confined – initially at least – to Project Eagle, it is likely to include within its remit any political considerations that led Nama to expedite its loan sales in the North.

Nama chairman Frank Daly, in a letter to Minister for Finance Michael Noonan released earlier this week, stressed the agency was following his instructions when it moved to accelerate its disposal of assets in 2013-14. There is also likely to be a focus in the coming weeks on political pressure on Nama in Belfast.

Best return

The Irish Times understands communications from the Stormont Executive to Nama were a frequent occurrence during the period. The agency continues to insist that the disposal of the Project Eagle assets achieved the best possible return for the State.

Meanwhile, it is unclear if Mr Noonan will give evidence before the Public Accounts Committee when it holds hearings on the C&AG's report next month. A statement issued by PAC chairman Seán Fleming suggested Mr Noonan would appear before the committee on October 6th.

However, a spokesman for the Department of Finance said no invitation had been received, and so no decision had been made on an appearance. He said the department would co-operate fully with the committee but it would be "unusual, maybe unheard of" for the Minister to appear in these circumstances. As with all Ministers, Mr Noonan is accountable to the Dáil, he said.