The Chief executive of Magahy and Company, Ms Laura Magahy, said today her friendship with Mr Paddy Teahon, the former executive chairman of Campus Stadium Ireland Development Ltd (CSID), had nothing to do with her being awarded the executive services contract for CSID.
The Chief executive of Magahy and Company, Ms Laura Magahy, said today her friendship with Mr Paddy Teahon, the former executive chairman of Campus Stadium Ireland Development Ltd (CSID), had nothing to do with her being awarded the executive services contract for CSID.
Ms Magahy, Director of executive services for CSID, was speaking to the Dail Public Accounts Committee (PAC) for the first time today.
She said: "I applied [for the contract] through the normal channels. I resent any comment that I was awarded the contract because of my friendship with Mr Teahon".
Ms Magahy first met Mr Teahon in 1991 when she became the cultural and financial Director of Temple Bar Properties. Her company also holds the executive services management contract for Digital Media Development Ltd (DMDL), of which Mr Teahon is executive chairman. DMDL is responsible for the development of Dublin’s digital hub in the Liberties area of the city.
She told the PAC she approached Mr Teahon in January 2001 with regard to changing her company's fee arrangement for CSID from a percentage basis to a fixed rate. She said she did this because of concerns she had about how the original arrangement would be perceived by the public and media.
"I wanted the new contract because of transparency. I’m not interested in money. I’m interested in public projects. It’s as simple as that," she told the PAC.
The new arrangement was that Magahy & Co would be paid €127,000 per month to the supply executive services, whereas under the previous contract 1.8 per cent of the overall cost of Sports Campus Ireland would be paid to her company in fees for executive services.
A report earlier this year by consultants High Point Rendel estimated the cost of building the sports campus could be €894 million.
At 1.8 per cent this would have made for fees of approximately €1.3 million per cent. In such a scenario a fixed €127,000 per-month fee arrangement would have constituted a significant fee reduction.