Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

I will make an important preliminary point. This Adjournment matter refers to revelations. A number of allegations have been made and these are currently the subject of two Garda investigations. It cannot be said yet whether there will be revelations. I wish to assure the Senator that the NAMA board and I are taking these matters very seriously. The chairman, Frank Daly, has informed me that the NAMA board met this morning on the allegations. It indicated to the Committee of Public Accounts that it is anxious to be afforded a public opportunity to address these claims.

The PAC has now extended an invitation and the chairman and chief executive of NAMA will attend a meeting of the committee at 11 a.m. tomorrow morning. Indeed, NAMA issued a statement earlier today welcoming the opportunity afforded to it by the PAC to address allegations made against the agency in recent days, stating that it considers the PAC to be the most appropriate forum to address these matters.

As has been highlighted in recent days if any individual has information which suggests that wrongdoing has occurred, I would expect that he or she would bring such information to the immediate attention of the Garda Síochána, as legally obliged under section 19 of the Criminal Justice Act 2011. It is a matter for the Garda Síochána to investigate any wrongdoing.

I am informed that NAMA has referred two complaints about former employees of the agency to An Garda Síochána, pursuant to section 202 of the NAMA Act, which deals with unauthorised disclosure of information. Contrary to some reports, the second referral occurred in the first quarter of this year and not in recent days. Given that these matters are currently under active investigation by the Garda Síochána, I cannot make any further comment on the specific details of these cases.

I am also informed that NAMA has not been provided with any detail relating to recent statements made in the Seanad about alleged impropriety by NAMA staff. It may be that these recent statements refer to a case that has already been referred by NAMA to An Garda Síochána but NAMA does not have enough information to confirm this.

With regard to the level of political and administrative oversight, NAMA is subject to a high level of public accountability compared with other commercial semi-State bodies. This is reflective of its function in managing a significant financial exposure on behalf of the Irish taxpayer. The National Asset Management Agency Act 2009 makes the agency accountable in a number of ways, including by laying its annual report and audited financial statements before the Houses of the Oireachtas. The chairman and chief executive officer are accountable to the Committee of Public Accounts and other Oireachtas committees and give evidence to those committees whenever required to do so. In addition to its annual accounts, NAMA is required to submit to me an annual statement setting out its proposed objectives for the following year, the scope of activities to be undertaken, its strategies and policies, and its proposed use of resources. The agency is also required to report to me on a quarterly basis giving detailed information on its loans, financing arrangements and income and expenditure. I, in turn, am obliged to lay all such reports before the Oireachtas.

I am advised that NAMA's accounts are comprehensively audited by the Comptroller and Auditor General, who has a permanent team of officers based in the agency with unrestricted access to all its records and files. In addition to conducting annual financial audits of NAMA's accounts, the Comptroller and Auditor General's office has produced special reports regarding NAMA's acquisition of bank assets and management of loans. The process of loan valuation and acquisition is also being audited by the European Commission. An overarching review of NAMA is subject to a special report of the Comptroller and Auditor General which will be published early in 2014. As provided under the Act, I may also request ad hocreports in such form as I require.

It is clear, therefore, that NAMA is subject to a very high level of accountability, both in the legislation and in practice. I confirm that the oversight arrangements are continually kept under review to ensure the agency acts in the best interests of the taxpayer. I will fully consider the outcome of the Garda investigations and the views of the Committee of Public Accounts in seeking to protect the taxpayer. The outcomes of these matters, as well as the reports of the Comptroller and Auditor General, will be considered in the NAMA review my Department is undertaking next year, as required under the 2009 Act.