KPMG paid €76m in fees for its work on liquidation of IBRC
Published 29/01/2016 | 02:30
The Special Liquidators of the IBRC have negotiated fee rebates from many of the legal firms to work on the liquidation.
The liquidation of the bank has resulted in a bonanza for professional firms with special liquidators, KPMG receiving professional fees of €76m to the end of December 2014.
In a written Dáil response to TD Michael McGrath, Minister for Finance Michael Noonan confirmed that there are currently 100 staff at KPMG working on the liquidation. At the peak of the work, there were 330 working on the project.
In the fees paid to KPMG, a rebate of €5m was agreed with KPMG following discussions at the request of Minister Noonan while an additional €4.5m was recovered from Nama.
Mr Noonan said that KPMG rates are based on Nama rate cards for the relevant services.
The rate card was put in place following a competitive tender conducted by Nama.
The Nama rate card applicable for insolvency services pays a partner €295 per hour; a director €260 per hour; an associate director €220 per hour; managers €190 per hour; a senior accountant €165 per hour; semi senior accountant €165 per hour; and junior accountant €95 per hour.
"I am advised by the Special Liquidators that they have sought to minimise legal fees to the greatest extent possible. IBRC conducted a competitive tender process in order to establish a panel of legal firms," the minister said.
"Reduced and/or capped fees were included in the tenders. The Special Liquidators can confirm that the rates per the NAMA rate cards are reduced hourly rates or fixed costs for specific pieces of work.
"The Special Liquidators can confirm that they have successfully negotiated fee rebates from many of the legal firms. The liquidators cannot disclose information on the particular rates being charged as this is confidential to each of the legal firms."