Written answers

Tuesday, 21 February 2012

Department of Finance

Departmental Agencies

9:00 pm

Photo of Gerry AdamsGerry Adams (Louth, Sinn Fein)
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Question 184: To ask the Minister for Finance further to Parliamentary Question No. 153 of 14 February 2012, if he will provide the names of the 16 firms empanelled to advise National Asset Management Agency on loan sales in Europe and the US; the way this panel was put together; the number of officers in NAMA who have previously worked for firms on that list including a breakdown of the number of staff that worked for each firm; and if he will make a statement on the matter. [9708/12]

Photo of Michael NoonanMichael Noonan (Minister, Department of Finance; Limerick City, Fine Gael)
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The names of the 16 firms on the Loan Sale Advisory Services Panels are set out as follows:

Panel 1 – EuropeBrookland PartnersCantor FitzgeraldCB Richard EllisCushman & WakefieldThe Debt ExchangeEastdil SecuredErnst & YoungGoldman SachsJones Lang LaSalleKPMGLazardSavillsUBS
Panel 2 – USACB Richard EllisCredit SuisseThe Debt ExchangeEastdil SecuredErnst & YoungHolliday Fenoglio Fowler (HFF)Houlihan LokeyJones Lang LaSalleKPMGLazard

The Deputy should note that NAMA as a contracting authority is subject to EU Directive 2004/18/EC, as implemented in Ireland by the European Communities (Award of Public Authorities’ Contracts) Regulations 2006 (the “Regulations”), in respect of the procurement of goods, works and services above certain values (the “EU Thresholds”). The principles underpinning the Regulations are equal treatment, non-discrimination, mutual recognition, proportionality and transparency.

In certain cases, NAMA has established panels of service providers who have demonstrated, through a tendering process, that they are best placed to provide a particular service. NAMA advises me that it may then hold mini-tenders among suitably-qualified members of a panel to obtain the most competitive price for any particular assignment. This will apply to the Loan Sale Advisory Services Panels

Compiling information about the number of NAMA officers who previously worked for any of the firms above would add very little clarity to the matter of conflicts of interest since it would not cover all situations where potential conflicts could arise. More importantly, the key issue is that NAMA takes steps to ensure conflicts of interest do not occur. Under Section 42 of the NAMA Act, before he or she is assigned to NAMA, each officer is required to provide a statement of his or her interests, assets and liabilities to the Chief Executive Officer of NAMA and the Chief Executive of NTMA. Furthermore, a key item for any NAMA evaluation group for procurement of services is a declaration by each member that they have no conflict of interest in the outcome of the process. NAMA advises me that this enables the Agency to ensure

* that potential conflicts of interest in the management of the loan portfolios are managed effectively; and

* that staff do not participate in decisions which may involve the allocation of work to companies for which they worked previously.

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