The mammoth report is due for release tomorrow after it is cleared by cabinet.
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Northern Ireland police in July opened a criminal inquiry into the sale by NAMA to US private equity firm Cerberus Capital Management of the agency’s Northern Ireland loan book for 1.32 billion pounds ($1.71 billion).
Meanwhile, Ireland’s Comptroller and Auditor General found Nama has losses of £162 million on deals linked to Northern Ireland properties, the vast majority from Project Eagle.
The portfolio was eventually sold to the US-based Cerberus fund in 2014.
NAMA has “categorically rejected” the key conclusions of the report, stating they are “fundamentally unsound and unstable and can not be left unchallenged”.
The NAMA sale is also being investigated by the National Crime Agency and the finance committee at Stormont.
Sinn Féin leader Gerry Adams welcomed the Irish government’s decision but called it a “belated response following over a year of shocking revelations”.
A system of fees around the Project Eagle deal involving Mr Cushinhan, solicitor Tughans and firm Brown Rudnick should have “warranted more action” by Nama, it notes.
The financial watchdog has formally now questioned whether Nama should have considered the role of Frank Cushnihan, a businessman and member of Nama’s northern Ireland advisory committee.
Project Eagle was valued by Nama at 27p in the pound, with some assets worth as little as 5p in the pound.
Restrictions acted as a deterrent for other bidders and had the potential to affect the price achievable, says the C&AG report.
In a statement, the Government said the C&AG’s report raised “a number of important issues which the Government acknowledges will require further investigation”.
NAMA said the C&AG was incorrect in assuming that NAMA should have applied the same 5.5 percent discount rate it typically used for assets in Dublin and London and was correct to apply a larger 10 percent discount rate for the “poor quality” Northern Ireland loans. It would welcome such a public hearing and will offer any support that the PAC needs in the conduct of its inquiries.
Taoiseach Enda Kenny has invited Opposition leaders to meet with him today to discuss the nature and scope of an inquiry into the Project Eagle sale.
“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.
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“The Government’s objective is to ensure that all matters of public concern are addressed in a speedy and effective manner”.
