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Upset, bemused, frustrated? Well try confused!

There's been another twist in the on-going saga involving Northern Ireland Water, the Department of Regional Development and the assembly's Public Accounts Committee.

The Department has been answering questions today about a leaked e-mail, written by its permanent secretary, Paul Priestly, shortly after he appeared at last month's PAC's hearing into NIW. The Department is responsible for the go-co and the PAC was probing the sacking of four company directors after it emerged contracts were handed out without competition.

Last month's PAC hearing was controversial enough, not least because Peter Dixon, chief executive of Phoenix Gas, was upset about questions some MLAs had asked about his role. Mr Dixon was a member of an Independent Review Team brought into probe the contracts problem. The team's report led to four NIW executive being sacked. Mr Dixon wasn't before the committee, but subsequently complained that the line of questioning at the committee by three MLAs was disgraceful. He felt that some MLAs had sought to insinuate that some members of the review team weren't entirely independent or impartial. The complaint was in a letter leaked to the ´óÏó´«Ã½. Mr Dixon has since withdrawn the complaint.

Now the permanent secretary's e-mail on the issue has been leaked to the Slugger O'Toole website. Paul Priestly who had answered questions at committee, subsequently wrote to the Auditor General, Kieran Donnelly, informing him that another member of the review team, Jackie Henry had been in touch with him. She was "less upset" than Mr Dixon but "bemused and frustrated."

In the email, Mr Priestly suggests that Mrs Henry is seeking to meet the Auditor along with other review team members. He refers to "accusations and insinuations" made at the PAC. And adds that Mrs Henry wanted to hear how the Northern Ireland Audit Office was going to deal with the matter IN ASSISTING THE PAC IN COMING UP WITH THEIR FINAL REPORT. (The caps are Mr Priestly's - a mistake, we're told.)

He adds: "I THINK IT WOULD BE HELPFUL FOR YOU TO MEET THEM IF THE REQUEST IS MADE."

Now, Mr Dallat, a PAC member, responsible for some robust questioning, was not impressed with this e-mail. In his own statement, he's criticised Mr Priestly - accusing him of interfering in what is meant to be an independent process.

The Department says Mr Priestly "did not make recommendations on behalf of the Independent Review Team. and that "the Permanent Secretary was not suggesting any course of action in the investigation."

Mr Dallat says an independent inquiry is now needed to clear up all the controversy surrounding NIW.

The PAC's final report is due out in the autumn.

As for the minister, Conor Murphy, he's not commenting.

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