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Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: The higher the price achieved, the more money Lazard would have received.

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: I thank Mr. Long for his forbearance thus far. I do not believe anybody has actually asked him whether he has had any dealings with Cerberus prior to acting in the Project Eagle sale..

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: So Lazard and Cerberus have worked together before.

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: So the answer is "Yes". Has Mr. Long had personal dealings with Mark Neporent?

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: On page 77 of the Comptroller and Auditor General's report, there is a very revealing paragraph on Lazard's position in these proceedings. Paragraph 4.44 states:In response to a series of questions put to them by NAMA, Lazard stated to NAMA on 31 March 2016 that - Apart from the nine global investors who participated in the process, there is no evidence that any other investor existed at...

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: It is difficult, as an average taxpayer, to understand how Lazard could remain impartial in those circumstances when the higher the price paid, the more money Lazard would get.

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: That is very concerning when we consider the process from the perspective of Cerberus and take account of the complaints made by other bidders. Does Mr. Long understand my point?

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: Yes.

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: That means what I have said is correct. Mr. Long spoke about managing bidders' expectations.

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: There was no point in them having expectations other than the amount they wanted to pay.

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: A successful sale for NAMA is a successful sale for Lazard. That is how it works.

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: It is common practice. I disagree with it and believe there should be a set fee in these circumstances. The Chairman mentioned there is a case of no foal, no fee. I am a solicitor so I know how the system works.

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: I do not think it is a good idea. Did Lazard have a break-even fee? If Lazard did not secure a certain amount in the sale, surely with overheads and everything else, Lazard was in line to fall off a cliff and lose a significant amount of money and labour, albeit over a short period.

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: Therefore, Lazard was motivated to get the highest bidder possible. Did Mr. Long have a reserve break-even price?

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: Yes.

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: I understand that perspective. Please forgive me if my question was unclear. I referred to the competitiveness of other bidders, how they were introduced and how they would remain a competitive bidder. I questioned how Lazard could remain impartial when it was obvious that Lazard would want the highest bidder. Does Mr. Long know what I am saying? Therefore, some bidders may have been...

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: It is a farce for Mr. Long to say that other criteria other than the highest price would be of relevance.

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: Does Mr. Long believe that the Irish taxpayer got the best value for the sale?

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: What is Mr. Long's personal view of success fees in general?

Public Accounts Committee: Special Report No. 94 of the Comptroller and Auditor General: National Asset Management Agency Sale of Project Eagle (Resumed) (22 Nov 2016)

Josepha Madigan: Does Mr. Long think they are worthwhile?

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