A new report on the National Asset Management Agency, commissioned by the Construction Industry Federation, says the agency is a flawed idea and a failure.

The report, carried out by independent research consultants Lombard Street Research, says that NAMA contributed to the Irish banks' deterioration and the need for the bail-out from the EU and International Monetary Fund.

The 'NAMA one year later' report recommends that NAMA should be a developer and not just a liquidator. It also says it should accept an element of debt restructuring.

Today's report states that the agency should be more receptive to outside capital and should stop buying unimpaired loans.

The CIF asked the consultants last year to evaluate NAMA against banking rescue schemes in other countries. That report - which was not publicly published but passed on to the Department of Finance and NAMA itself - found structural weaknesses in the proposed scheme.

These included the lack of political consensus, the planned assumption of good as well as bad loans from the banks and the need to actively encourage private sector participation in the working out of the country's construction downturn.

NAMA has said it completely rejects the 'flawed and one-sided' analysis of the agency published today by the Construction Industry Federation. The agency says the report is factually incorrect in respect of many of its criticisms of NAMA and is not objective.

EU approves second batch of NAMA loans

The European Commission has approved the valuations made by the National Asset Management Agency for the second tranche of loans it has acquired from the banks.

The valuation of a total of 11,000 NAMA loans has now been approved by the EU.

NAMA chairman Frank Daly said the EU approval confirmed that the agency's valuation and due diligence process was working effectively and well.

He said the EU approval was particularly significant in the light of recent suggestions that NAMA should have paid more for the loans it was buying in order to protect the banks.

NAMA paying €900,000 a year to Deloitte

The National Asset Management Agency has agreed to pay accountancy firm Deloitte & Touche almost €900,000 a year to carry out internal audit services. The matter was raised at the Oireachtas Public Accounts Committee last week.

In a letter to committee chairman Bernard Allen, dated November 20, NAMA chief executive Brendan McDonagh confirmed that, following an EU public procurement competition, it had been decided to pay €890,690 a year to Deloitte & Touche for 8,058 hours of work. This works out at an average hourly rate of €110.50.

A spokesperson for NAMA said that value for money was a priority in all tenders and described this rate as 'competitive'.