Tuesday 27 September 2016

The €100m bill charged by Nama-appointed receivers

Published 27/12/2015 | 02:30

Finance Minister Michael Noonan. Photo: Tom Burke
Finance Minister Michael Noonan. Photo: Tom Burke

Receivers appointed by the National Asset Management Agency (Nama) to its debtors have collected €100m in fees since the agency was set up five years ago.

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The bill was revealed last week by Finance Minister Michael Noonan in response to a parliamentary question from Fianna Fail's Michael McGrath.

Insolvency practitioners like receivers were one of the few professions to enjoy a big boost in business from the recession. Receivers at KPMG, RSM Farrell Grant Sparks, PwC and Savills have been some of the recipients of Nama business since 2010.

A total of 70 separate firms were appointed as receivers by Nama over the five years, selected from a panel created through a public appointment process.

The annual cost to the National Asset Management Agency of appointing receivers peaked in 2014, when 73 appointments were made at a cost of €23.02m, Minister Noonan said. In 2015 to date, 23 have been appointed at a cost of €17.32m.

"Receiver fees form part of the receivership and are met out of receivership realisations," said the Minister for Finance.

"Fees for an insolvency are set by reference to the procurement process relating to the selection and appointment of the insolvency practitioner.

"Typically fees reduce as the assignment progresses and the level of assets reduces by way of disposals or otherwise. However, this depends on the complexity of the insolvency and the fact that issues can emerge during the insolvency."

Receivers of the bad bank generated nearly €500m for Nama by selling jewels, artwork and other items taken from borrowers it has moved against, the Minister for Finance also revealed last week in a separate parliamentary question in the Dail.

Items sold included works of art by Jack Yeats, Roderic O'Connor and Ivon Hitchens.

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