The Public Accounts Committee has said that NAMA's failure to check if a loan is being taken out by an original buyer is "unacceptable".

Under Section 172 of the National Asset Management Agency Act 2009, NAMA is prevented from selling loans to debtors at anything other than full price, while other buyers can buy at market rates. 

The state's spending watchdog the C&AG reviewed the sale of 80 assets and found that 78 of these were required to have completed a Section 172 declaration.  

The report also highlighted that while Section 172 declarations are received in most cases, there is no verification process carried out on the declarations. 

In its annual report published today, the Public Accounts Committee recommended that NAMA puts in place a system to verify Section 172 declarations it receives for the remainder of its operation. 

The Committee also said the acceptance by Local Authorities of just 40% of the 7,000 residential units and sites suitable for housing requires re-examination given the current housing crisis.

It said the NAMA housing units and sites suitable for housing should be re-offered and reconsidered by Local Authorities.