Nama's NI deal had 'irregularities' says Republic's spending watchdog

The National Assets Management Agency (Nama) is the Republic of Ireland's "bad bank"

The Republic's spending watchdog has reportedly concluded that the £1.2bn sale of Nama's Northern Ireland loan portfolio had "irregularities" and "shortcomings".

Nama sold its entire Northern Ireland portfolio to Cerberus, a US investment fund, in 2014.

The Irish Times has reported that the Comptroller and Auditor General (C&AG) will say that failings in the sales process could have resulted in "hundred of millions of euro" not being realised.

• Timeline of Nama's NI property deal

• Nama NI: Key figures and background

Nama, an Irish state agency, was established in 2009 to take control of billions of euro of bad property loans which were damaging the Irish banks.

Controversy around the sales process has centred on the role of the businessman and former Nama advisor Frank Cushnahan.

While working as an advisor to Nama he began talking to a US investment fund, Pimco, which was interested in buying the portfolio.

Mr Cushnahan, a former banker, was a Nama adviser from May 2010 to November 2013

He then left his Nama role and went on to assist the fund with its bid.

He was due to be paid £5m if the bid succeeded - but it collapsed when Nama learned of Mr Cushnahan's role.

Subsequently only two other firms made offers to buy the Northern Ireland portfolio.

The highest bid of £1.24bn - a fraction above the minimum reserve price - was made by Cerberus.

The other offer from Fortress was for £1.1bn, which was below the reserve.

Shortcomings

Earlier this year, the BBC Spotlight programme broadcast a covert recording in which Mr Cushnahan claimed he was also due to be paid a fee in relation to the Cerberus deal.

The Irish Times reports that the C&AG will say that "while it impossible to be definitive", shortcomings in the sales process meant Nama did not receive hundreds of millions of euro that it might otherwise have.

A Nama spokesman said: "We're not making any comment and will respond when the report is published."

In a statement, the Department of Finance in Dublin, said: "'The minister will brief his cabinet colleagues at an upcoming government meeting.

"The report will be published thereafter. No further comment will be made until after publication."

Mr Cushnahan has always denied any wrongdoing in relation to his Nama role.

Cerberus has said that the sales process for the loan portfolio was "conducted with full integrity" on its part.

Earlier this week, BBC NI's Spotlight programme reported that Mr Cushnahan was recorded accepting a £40,000 cash payment from a Nama borrower.

Arlene Foster said the National Crime Agency was the appropriate organisation to investigate the matter

Mr Cushnahan, who was advising Nama at the time, has denied any wrongdoing.

Following the broadcast, First Minister Arlene Foster rejected a call by Sinn Féin's Martin McGuinness for a cross-border Nama inquiry saying it was "not appropriate".

Mr McGuinness said he supported such an inquiry following new revelations in the Spotlight programme about Nama's role in Northern Ireland's biggest ever property deal.