Nama: Irish government to set up investigation into biggest ever NI property deal

There have been a series of allegations about impropriety in Nama's sale of the property loan portfolio

The Irish government has said it intends to set up an investigation into Northern Ireland's biggest ever property deal.

Nama, the Irish state asset agency, sold the property loan portfolio to a US investment fund for £1.2bn in 2014.

There have been a series of allegations about impropriety in the sales process.

The Dublin government will discuss options with opposition parties before deciding on the format for an inquiry.

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The Nama deal is already the subject of an inquiry by the Northern Ireland Assembly's finance committee.

The Irish government's decision comes after the publication of a report from the country's public spending watchdog that concludes the deal had shortcomings.

The Comptroller and Auditor General's report suggests the portfolio was undervalued by tens of millions of pounds and that restrictions imposed on the sales process reduced competition in the bidding.

The report is also strongly critical of the way in which Nama managed potential conflicts of interest concerning its Northern Ireland advisor Frank Cushnahan.

It said the agency should have considered if his role was "consistent with his ongoing involvement as financial advisor to a significant proportion of the Northern Ireland debtor connections".

Nama has rejected the report saying that key findings are "fundamentally unsound and unstable and cannot be left unchallenged".

'Shocking revelations'

The agency's chairman, Frank Daly, said it retains "the strong view that the sale of the Project Eagle portfolio for £1.322bn was the best achievable outcome".

In a statement, the Irish government said it had considered the report in detail.

It said that opposition party leaders will meet Taoiseach (Irish prime minister) Enda Kenny on Thursday "with a view to seeking agreement" on an investigation.

"The government recognises that it has its own responsibilities to ensure all matters of public concern with regard to the functions of an important body such as Nama are addressed," it said.

Sinn Féin leader Gerry Adams welcomed the Irish government's decision but called it a "belated response following over a year of shocking revelations".

He said any inquiry "needs to have a strong north-south dimension" and urged maximum co-operation between the authorities in Northern Ireland and the Republic of Ireland.

Frank Cushnahan, a former Nama adviser, was recorded accepted a cash payment from a Nama client

On Monday, Mr Kenny said he was "not opposed" to an inquiry after "extraordinary" allegations about the deal were made in a BBC Spotlight programme.

It showed Mr Cushanhan accept a £40,000 cash payment from a Nama client.

The payment was made by County Down property developer John Miskelly.

Mr Cushnahan was working as an advisor for Nama at the time. He has denied any wrongdoing.

Mr Miskelly has said that any payments he made were "lawful".