Results 22,141-22,160 of 34,729 for speaker:Seán Fleming

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)

Seán Fleming: Fine, we will check our records.

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)

Seán Fleming: I do not know.

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)

Seán Fleming: Based on Lazard's reluctance, it has not been forwarded.

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)

Seán Fleming: Mr. Long will discuss it with NAMA. We will take it up with NAMA directly. Mr. Long seems to be willing to provide it to the committee once it is not put on the public record. Is that correct?

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)

Seán Fleming: We, as a committee, will discuss how to handle that. I accept what Mr. Long is saying, but it is slightly unusual. We will come back to that issue. I have a question on page 83 of the report. In the letter of 2 April, Lazard gave its recommendation to NAMA. I should have said page 82.

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)

Seán Fleming: Page 82 of the report states that in a letter dated 2 April Lazard noted that:The process involved a limited number of highly qualified bidders, [that is a qualification; it was a limited process] limited due diligence information, [that is a second qualification] a single round of bidding [a further qualification] and the requirement for bidders to acquire the portfolio 'entirely in cash'....

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)

Seán Fleming: It was not that it was a great process. Lazard was putting on record NAMA's restrictions that the chairman has separately described as a very bespoke process - all of those made it highly bespoke. Has Mr. Long ever seen those four restrictions in a process like this before - a single round; entirely for cash; limited due diligence available; and a limited number of bidders? It was a very...

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)

Seán Fleming: Yes, absolutely.

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)

Seán Fleming: That is most interesting. NAMA will explain why it was so restrictive. Page 83 of the report refers to the Lazard letter as stating, "the sell-side process for the transaction was appropriate for the sale of a loan portfolio of this nature". Again it is all connected. Lazard was only dealing with the sell side. Lazard was on a success fee. I again thank Mr. Long for coming here today.

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)

Seán Fleming: I know an issue was made about the limited amount of work Lazard put in and the amount of hours it took. Had it not reached a successful financial conclusion, despite other issues, Lazard would not have received a fee.

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)

Seán Fleming: So there is a risk on the company's behalf, whether or not it is going to get paid at all. In fairness, that must be said because Mr. Long is assisting. Given those levels of restrictions that NAMA put on the process before Lazard arrived on the scene, was it fair to Lazard that it had to operate on a no foal, no fee basis, as we would describe it here. I can understand if a person was...

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)

Seán Fleming: So eventually Lazard accepted it despite the inherent risks from the witness's point of view?

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)

Seán Fleming: I want to move on to page 152, part of appendix C and it is an important document. It is the summary of the bids received from Fortress and Cerberus. I refer again to the restrictions that NAMA placed on the bid before it got near Lazard. Page 152 of the report shows the prices and the fact Fortress did not meet the reserve price. On the same page, under the heading of financing, it shows...

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)

Seán Fleming: Did it meet the reserve?

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)

Seán Fleming: Ultimately, only one bid met the reserve 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)

Seán Fleming: Mr. Long has said that price was the key, crucial issue.

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)

Seán Fleming: That was not very competitive. Lazard had only one valid bid on the table based on the conditions of the sale. How could one describe that as competitive?

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)

Seán Fleming: So, at the end of the day, the witness was happy with one. My last question concerns the meetings with Cerberus the night before the bids were submitted. Was Lazard involved in those meetings?

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)

Seán Fleming: Was Mr. Long aware of the meetings in advance?

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)

Seán Fleming: Given that Lazard was the sales agent, and a meeting was going to happen between Cerberus, who Mr. Long had said was very heavily involved in the process, the Minister for Finance-----