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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: Does Mr. Long thing there was a concern that the key player was gone and, therefore, other firms would have had insufficient time to prepare their bids?

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: Did NAMA ever discuss why it wanted to keep the sales process confidential?

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: How realistic would it have been to keep it confidential?

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 some of the firms were not allowed to use local advisers and valuers.

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 view on that?

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 about the fact that PIMCO, Brown Rudnick and Tughans could have been using local valuers until that time? They did not sign the non-disclosure agreements with NAMA until October or November 2013.

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 accept any shortcomings on behalf of Lazard in terms of the unusual practices? Would he accept there were unusualities in this process?

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 would Mr. Long do differently? It is not a hypothetical question. Would he like to see those unusual practices eradicated?

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.

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