Law firm paid more than double agreed fees by NAMA according to C&AG

He3

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LEGAL FIRM Arthur Cox was paid more than double the fees it was contracted to receive from the National Asset Management Agency (Nama), according to a report by the Office of the Comptroller and Auditor General (CAG) John Buckley.


Legal firm paid more than double agreed advisory fees, report shows - The Irish Times - Wed, Nov 03, 2010


This seems very odd. According to the newspaper report, they were on a fixed fee of €200k for a set period from June to September 2009, but ended up billing and being paid €480k. Laura Slattery adds:

The legal firm said the fees agreed under its contract with Nama were based on an “understatement of the time and resources required by the project”.

This thread from 29 May 2009 may be relevant to the topic:

http://www.politics.ie/economy/72974-nama-tender-notice-published-6-02pm-bank-holiday-friday.html
 
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He3

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Particular issues

From the tender notice mentioned in that 29 May 2009 thread - you might like the opening line: In common with other countries, Ireland is experiencing particular issues in its banking and financial sector.

The job description was more specific

3.1
The Services:
On the direction of the Minister for Finance, the NTMA is seeking to appoint a legal adviser to advise and assist the NTMA in its preparatory work in structuring NAMA and to ensure that the enabling legislation is fit for purpose. It is expected that legislation will be introduced in July 2009 and enacted no later than September 2009.

NTMA will require legal advice in relation to NAMA’s corporate framework, the
planning and design of the legal framework for participation in NAMA and advice on legal issues which will be incorporated into the draft legislation. It is envisaged that the following areas will be relevant:

legal structure of NAMA; state owned company or statutory body corporate
legal structures for NAMA and NAMA sponsored SPVs
banking and regulatory issues
constitutional and administrative law issues
asset transfers - legal requirements and options
asset management - options for servicing, restructuring and disposal
enforcement of security - legal requirements and options
legal relationships with participating banks, syndicate banks and other
stakeholders
formulation of standard term sheet and conditions for participation
design of due diligence process for asset transfers
design of documentation for asset transfers
design of servicing agreements and other matters ancillary to participation


3.2
Permitted Assumptions for the purpose of this Tender Process:
(i) as the participating banks have not yet been identified, it may be assumed that all of the Covered Institutions (as defined in the Credit Institutions (Financial Support) Scheme 2008) will participate;

(ii) legal issues in respect of non Irish assets will be dealt with by overseas
advisers and separate from this tender process; and

(iii) to the greatest extent possible, technical issues concerning the legal transfer of Irish assets will be dealt with legislatively.

3.3
Duration of Contracts:
The duration of the contract will be determined by the specific needs of the engagement and will continue until the key objectives of the engagement are met. It is anticipated that services concerning the enabling legislation will be largely delivered by mid July 2009.

Services concerning other issues will continue until at least end September 2009.
 
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RightCentreLeft

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Some posters on other threads getting all high and mighty regarding a few rowdy students today - I ask... who are the real criminals?
 

Radix

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Will Arthur Cox be the next Mrs. Gilmore?

Will consensual frontloading of €15bn, change before the next GE?
 

Oldira1

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Arthur Cox are a crowd of gangsters! This is unreal and not a peep from opposition. If you tender and the price is too low then you just accept it but not solicitors. They are pure scum! Today we saw the media trumpet Ernest and Young and some poxy jobs, some of which are in 'fraud investigation' and nothing about them in cahoots with Anglo! Obviously a PR job from a bunch of hoods
 

ASH956

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That's a very constructive post!
300 jobs announced by Ernst & Young - some poxy jobs?
 

He3

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Gotta love that tender

[ame=http://www.youtube.com/watch?v=HZBUb0ElnNY]YouTube - Elvis Presley - Love Me Tender[/ame]
 

Squire Allworthy

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Really you would need to know the entirety of the contract documents and the specifics of the extras. Sounds like someone produced tender documents and obtained tenders based on false assumptions. I must say being out by more than 100% is either a serious error or it indicates uncertainty on scope at the time of tendering.

Partners rate 470 Euros an hour and Associates 290 Euro and both of these have already 10% discount. Monthly income of someone on the minimum wage around 1400 Euro. I am not saying they are not worth their fee nor that they are particularly expensive, but worth remembering when belt tightening is mentioned.
 

nonpartyboy

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All covered by the taxpayer because of the small no. of firms that specialise in the CYA Act...what's a E1000 quid a day for people with this kind of experience. Priceless i say !.
 

Paddy Sarkozy

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Like I've said before, in any other country Arthur Cox would have been hauled up on an anti-trust rap years ago.
Here instead of getting tough with em, the government just doubles their loot.
Nice work if you can get it.
 

Oldira1

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That's a very constructive post!
300 jobs announced by Ernst & Young - some poxy jobs?
Yes poxy... Like yourself I daresay. These jobs are a normal amount for a firm that size who take in scores of graduate annually without a big announcement. This firm are just doing a PR job to make up for all recent bad publicity. Word is they are to be sued for negligence by both shareholders and the state! These jobs may be in a bankrupt firm
.
 

Oldira1

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Really you would need to know the entirety of the contract documents and the specifics of the extras. Sounds like someone produced tender documents and obtained tenders based on false assumptions. I must say being out by more than 100% is either a serious error or it indicates uncertainty on scope at the time of tendering.

Partners rate 470 Euros an hour and Associates 290 Euro and both of these have already 10% discount. Monthly income of someone on the minimum wage around 1400 Euro. I am not saying they are not worth their fee nor that they are particularly expensive, but worth remembering when belt tightening is mentioned.
If these figures are true then this is robbery and Arthur Cox are worse than gangland criminals!
 

He3

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Wonder what the unsuccessful tenderers make of the news.
 

Oldira1

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Just read the full artice and am scandalised/ PWC have FOUR staff contracted to NAMA at an original cost of €60,000 per week and now €40,000 per week. In other words TEN GRAND a week each!!! We are going to cut childrens allowance and these hoodlums are being paid this amount. FFS where is people's anger? This is criminal stuff.
 

Squire Allworthy

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Tendering does not necessarily produce the best value available. Much depends on who is asked to tender.

Surely sound advise can be purchased for less than this in Ireland. If it can't then it is easy to see why the country is in economic difficulty.
 

SilverSpurs

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Didnt Aurthur Cox come out to bat for Lisbon? From memory they provided assistance to the yes camp. If they didnt apologies in advance to AC.
 


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