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National Asset Management Agency

Dáil Éireann Debate, Tuesday - 24 April 2012

Tuesday, 24 April 2012

Ceisteanna (140)

Stephen S. Donnelly

Ceist:

232 Deputy Stephen S. Donnelly asked the Minister for Finance with regard to scrutiny of the National Assets Management Agency by the Office of the Comptroller and Auditor General, the number of staff in the office that are assigned to scrutiny of NAMA; if the office has employed external consultants, advisors or agencies in the process of its scrutiny of NAMA, and if so, the number of same and the cost; and if the office, or external agents employed by it, have conducted site valuations of NAMA properties, and if so, in what circumstances. [20393/12]

Amharc ar fhreagra

Freagraí scríofa

I am advised by the Office of the Comptroller and Auditor General that he conducts his audits of NAMA in accordance with International Standards on Auditing. The Standards set out the basic principles and essential procedures with which an auditor must comply. Subject to the need to comply with the Standards, the question of what audit procedures are required for any particular audit is a matter for the auditor, in this case the Comptroller and Auditor General, to decide. Staff of the Office of the Comptroller and Auditor General who are assigned to the audit of NAMA also carry out other duties also. During 2011, 13 individual staff members carried out work in relation to auditing and reporting on NAMA, representing almost 9 person-years of work. It is anticipated that a similar level of staff resources will be assigned to NAMA-related work in 2012.

I am informed by the Office of the Comptroller and Auditor General that it has engaged external expert advice on two occasions.

The first was in relation to Property Valuation. His Office used the services of the Valuation Office and of a former Commissioner of Valuation in Northern Ireland to review the loan acquisition property valuation process. The total cost of these services was €31,600 inclusive of VAT.

As part of the review of the NAMA property valuation by the Valuation Office, a sample of valuations was reviewed. There were no site valuations carried out on NAMA controlled properties as part of any evaluation process carried out by the C&AG. All valuation reports and files were made available to the reviewers who also met with relevant NAMA personnel. The reviewers found the current market valuations for the purposes of valuing loans being acquired from the participating institutions were carried out in accordance with the standards prevailing in the industry.

The second occasion was in relation to the legal due diligence process. The Office of the Comptroller and Auditor General used the services of a legal firm that had not been involved in the legal due diligence process in NAMA to review the process established by NAMA for the purposes of loan acquisition. The total cost of these services was €48,599 inclusive of VAT.

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