Oireachtas Joint and Select Committees
Tuesday, 25 October 2016
Public Accounts Committee
Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed)
10:00 am
David Cullinane (Waterford, Sinn Fein) | Oireachtas source
This is what we are trying to establish because we need contemporaneous proof that when a decision was taken to apply the 10% discount rate that was based on evidence, not on a verbal analysis that might have been given by individuals at a board meeting or on some generic fair value methodology that was worked out in 2012 and 2013, but in the here and now in 2013 when the decision was made.
The opening statement continues that the blended portfolio rate, which would have been the 5.5% discount rate up to 2014 and 2016 in terms of cash flows, and 10% thereafter. It refers to "the particular characteristics of that portfolio - the Eagle portfolio carried higher risk and would therefore have warranted a discount rate higher than the blended portfolio rate". What evidence, what expert opinion not verbal but written, was presented to the board to justify that?
No comments