A commission of investigation is to examine the role of Minister for Finance Michael Noonan in the Project Eagle sale by the National Asset Management Agency.
Taoiseach Enda Kenny met the leaders of the Opposition parties on Tuesday to draft the scope of an inquiry into the agency's sale of the Northern Ireland loans portfolio.
The portfolio, which had a book value of €5.38 billion, was sold to US fund Cerberus for just over €1.43 billion in 2014.
It was proposed the commission inquire into whether the sale of the loan book was appropriate and whether the price agreed was value for money for the taxpayer.
The Project Eagle controversy arose over the sale of the Northern Ireland portfolio of properties held by Nama, and the fixers' fees paid to legal firm Tughan's and Frank Cushnahan, a member of Nama's Northern Ireland advisory council.
The draft terms of reference proposed by Mr Kenny will allow for the Nama's management process to be examined and will assess if the agency applied the correct procedures and controls.
The commission of inquiry will also inquire if there was any conflict of interest in relation to members of Northern Ireland’s advisory committee and whether the appropriate action was taken when Nama became aware of the issues.
It will also inquire into the alleged payment of fees to Mr Cushnahan. The actions of Mr Noonan and the Department of Finance will also be assessed by the inquiry.
Contacts
The commission will examine all communications by Mr Noonan and his officials with members of the Northern Ireland executive and whether such contacts were appropriate.
Mr Kenny told the party leaders the commission would be given the authority to examine anything arising outside the State if it feels it is relevant to the inquiry’s work. However, it must respect obligations of confidentiality and commercial sensitivity.
The commission will be asked to provide an interim report to the Taoiseach within three months of commencement.
Mr Kenny is also allowing for the inquiry to be expanded to examine other transactions by Nama if it deems that appropriate.
The sale of Project Eagle by Nama has been criticised by the Public Accounts Committee and the Comptroller and Auditor General.
The Taoiseach had committed to establishing a commission of investigation late last year but withheld its commencement until the Pac reported.
Mr Kenny told the opposition leaders he expected the commission to be completed by June 2018.
The chair has not been decided but the commission will be given the power to appoint persons with “appropriate, commercial and financial expertise”.
The draft terms are to be debated in the Dáil before the establishment of the inquiry.
Other aspects of the Project Eagle sale are being investigated by the US department of justice, the US securities and exchange commission, and the UK national crime agency.
