PUBLIC ACCOUNTS COMMITTEE:THE DÁIL'S financial watchdog will ask Minster for Finance Brian Lenihan to give it the role of monitoring Nama, the National Asset Management Agency, when it begins operations.
The chairman of the Public Accounts Committee (PAC), Bernard Allen, yesterday confirmed that it would be writing to Mr Lenihan requesting that legislation establishing Nama should include provisions to give the committee an oversight role.
Mr Allen told The Irish Times that with the public’s exposure to potentially huge sums of money, the Bill setting up the agency should make it subject to scrutiny by the committee.
“It’s a concern of ours that Nama must be answerable to this committee,” said Mr Allen.
He said the chief executive of the National Treasury Management Agency, Michael Somers, had indicated to the committee last week that the scrutiny of Nama should be the “bread-and-butter” role of the PAC.
Mr Allen, Fine Gael TD for Cork North Central, was speaking after the committee issued its final report for this year, which showed that more than €300 million of unnecessary State spending had come to light in the past year.
Among the issues highlighted in the report, the fifth this year, was the annual €50 million bill for rent on prefabs in schools.
The report criticises the Department of Education for not having a full inventory of the accommodation it owns and rents.
Other cost over-runs and shortfalls highlighted include: €70 million on the Limerick drainage scheme; the continuing overspend on the Ballymun regeneration project; and an estimated €119 million in outstanding tax that remains uncollected by Revenue.
An earlier committee report reached conclusions on the governance of Fás. This report identifies shortcomings in the governance of the Financial Regulator, as well as in other State agencies including Bord na gCon and the National Educational Welfare Board.
According to the vice-chairman of the committee, Fianna Fáil TD Darragh O’Brien, it raised questions about the efficacy of the Financial Regulator long before it was heavily criticised for its “light-touch” regulation of the banking and financial sector.
Mr Allen said it would vigorously follow up on its recommendations to ensure that agencies did not relapse into bad practices.
“The State is also involved in delivering projects that do not meet targets both in terms of budgets and time scales,” he said.
“It is 15 years since the proposal that public transport users in Dublin would have integrated tickets which enable them to use bus, Dart or train.
“We are still waiting for delivery of that project.”
Mr Allen continued: “These reports are bringing about a new culture of adherence to rules and regulations.
“In each area that we examine, we will be asking the responsible official in the department or agency to account for how they have implemented our findings.”
