I welcome the Minister for Finance, Deputy Michael Noonan.

I thank the Minister for his attendance to discuss and debate the very serious revelations which have emerged in the past few days about the activities at NAMA. The allegations of unsavoury practices engaged in by some servants and-or agents of the agency is most worrying to the taxpayers of Ireland. Last May and June I raised issues pertaining to NAMA and employment contracts and the need for non-compete clauses to be included in them. I also raised the fact there was evidence of data protection breaches, contrary to the Act, and indeed the possibility of employees having breached section 221 of the Act which forbids lobbying by third parties. These are all very serious matters. However, this matter arose during the course of this week with complaints to An Garda Síochána, a court action and now a former employee turned whistleblower coming forward to disclose wrongdoing in the agency. I understand the matter is now with the Garda fraud squad. I look forward to learning the outcome of these investigations in the near future.

In early summer this year I warned that these communications could leave the State and the taxpayer exposed to a potential claim for damages of millions of euro in circumstances where it was quite clear to me that NAMA, its servants and-or agents had not acted in the best interest of its customers and indirectly, the taxpayer. That NAMA has been leaking confidential information is clearly placing the interests of personal gain ahead of the best interests of the taxpayer. It is clear to me that much of what appears to have been happening was facilitated by the veil of secrecy surrounding the agency's operations. The previous Fianna Fáil Government created NAMA, at a cost of billions of euro to the taxpayer, yet there is no transparency or accountability required from the agency. This is baffling in a modern democracy. We are in a legislative headlock because the legislation governing the agency, the NAMA Act, is severely limited in scope. This has helped to create these recent problems and revelations which are contrary to the public interest.

We do not know what deals are being done nor do we know the identity of those buying property from the agency. It is not right to put private sector assets into a body which could be subject to influence because of the lack of accountability. In the past I have referred in this House to an individual who left NAMA and immediately became partner of another property company in the United Kingdom, all made possible because there is no non-compete clause of significant duration existing in employee contracts. No regard is being given to the sensitive information on valuations, loan amounts and the amount NAMA would be willing to accept for properties. This is information which was known to this individual. At a time when property prices are on the rise - Dublin property prices have risen by 16% - this issue is of great concern. Today's whistleblower admitted that he has had communication with third parties, with other employees of NAMA, in respect of a customer's loans. This was and is highly prejudicial to the NAMA customer in question and will undoubtedly lead to copious legal cases being taken against the agency.

Suspect behaviour seems to be tolerated in NAMA. An Internet search showed that in August 2012 the Irish Independent reported how an existing employee had made himself a preferential creditor in dubious circumstances while working with the Irish Nationwide Building Society, a bank which is now within the remit and ownership of NAMA. He was an employee of the debtor's sister company before taking up employment with Irish Nationwide Buildidng Society. I ask if NAMA investigated Peter Malbasha at this time-----

The Senator is out of order for mentioning individuals by name under privilege in the House.

This man nearly earns the same salary as the Taoiseach, yet there is no oversight when it comes to his activities. It is in the public record in a national newspaper.

It does not matter if it is recorded in the public record.

What is happening is very worrying.

The Senator is speaking under privilege.

NAMA has a critical role to play in Ireland's economic recovery and we urgently need to restore confidence in the agency. We need to start by reviewing the draconian powers of the agency and to consider amending the NAMA Act to make it more accountable and transparent in order that what happened this week will not be repeated. We cannot allow unsavoury practices to continue and we must strive for better standards. For that reason, I request the Minister to liaise with the Minister for Justice and Equality to consider tabling amendments to the NAMA Act to allow for accountability, otherwise we will have learned nothing from recent events.

I will make an important preliminary point. This Adjournment matter refers to revelations. A number of allegations have been made which are the subject of two Garda investigations. It cannot be said yet whether there will be revelations. The NAMA board and I are taking these matters very seriously. The chairman, Mr. 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 Committee of Public Accounts has extended an invitation and the chairman and chief executive of NAMA will attend a meeting of the committee at 11 a.m. tomorrow morning. NAMA issued a statement earlier today welcoming the opportunity afforded to it by the Committee of Public Accounts to address allegations made against the agency in recent days, stating it considers the Committee of Public Accounts to be the most appropriate forum to address these matters.

As has been highlighted in recent days if any individual has information which suggests wrongdoing has occurred, he or she should bring such information to the immediate attention of An Garda Síochána, as legally obliged under section 19 of the Criminal Justice Act 2011. It is a matter for An 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, not in recent days. Given that these matters are under active investigation by An Garda Síochána, I cannot make 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 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. In turn, I 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 hoc reports in such form as I require.

It is clear, therefore, that NAMA is subject to a very high level of accountability, both in 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.

I thank the Minister for his response. The decision to bring NAMA representatives before the Committee of Public Accounts tomorrow is welcome. It is regrettable, however, that they did not make a full public statement earlier this week regarding the issues that have emerged.

I take the opportunity to confirm that I have given evidence of wrongdoing to An Garda Síochána. In respect of any dealings with the individual I named in the course of my submission today, I ask that NAMA be mindful of sections 43(2) and 43(3)(d) of the Act. I will give the Minister a copy of the newspaper report on this issue immediately following the debate. I welcome his undertaking to consider the outcome of the Garda investigation and the views of the Committee of Public Accounts. I remain of the view, however, that an amendment is required to the legislation to take account of these issues.

I thank the Senator for her supplementary information and will be glad to receive the newspaper cutting to which she referred. It is helpful that she has outlined her action in making reports to An Garda Síochána on the issue she raised in the House earlier this year.