“I am advised by IBRC that request for proposals (“RFPs”) have now been sent out to potential advisors in respect of the first tranche of assets for valuation. Successful applicants will be appointed to provide independent valuations for each loan or connection in the portfolios. This loan valuation process is expected to commence in early March and be completed by late June. As advisors are yet to be identified/engaged for all portfolios the special liquidators are not in a position to comment on the methodology to be used by the advisors and the cost of the independent valuations.” Minister for Finance, Michael Noonan responding to a parliamentary question on 26th February 2013
It took NAMA between four and six months from when the tenders were published, to appoint companies to undertake due diligence and valuation of the loan portfolios it was intending to acquire from the banks. It then took those appointed companies over two years to acquire €74bn of par value loans, for which NAMA paid €32bn.
NAMA is obviously populated by complete cretins because the bright sparks at KPMG are going to have €26bn of par value loans – €16bn after provisions – at Irish Bank Resolution Corporation valued in just four months and it will take them less than 30 days to appoint firms to do the valuation – see the Minister’s response above.
Skeptical? I don’t blame you.
And guess what? Minister Noonan has refused to publish the tender document for the appointment of valuers because it is “commercially sensitive”.
We have no idea how much the contract is worth, but it seems incredible that KPMG which has been appointed as special liquidator of IBRC, can have appointed valuers to value €26bn of par value loans vin less than 30 days, that is between KPMG’s appointment as Special Liquidator on 6th February 2013 and “early March”. And then those valuers will value €26bn of par value loans between “early March 2013” and June 2013.
For chrissakes, NAMA still hasn’t even obtained European Commission approval of almost half of its acquisitions and it has been operating for over three years. So, unless NAMA is really populated by cretins, then the KPMG-led independent valuation exercise of €26bn of par value loans has “cowboys” written all over it.
Minister Noonan was responding to a parliamentary question from the Sinn Fein finance spokesperson Pearse Doherty in the Dail yesterday.
Deputy Pearse Doherty: To ask the Minister for Finance if he will provide the tender document issued by the special liquidator of Irish Bank Resolution Corporation for the provision of independent valuation services to value loans for sale.
Minister for Finance, Michael Noonan : I have been advised by the special liquidators that the Request for Proposal (“RFP”) is confidential as it contains commercially sensitive material around the IBRC portfolio and around the independent valuation methodology against which bidders for loan assets will be bidding. The Special Liquidators have indicated that releasing information on the methodology may prejudice the ability of the Special Liquidators to obtain best value for the loan assets by providing information to bidders on these valuations.