Friday 15 December 2017

Bonanza for companies as Central Bank forks out €119m in fees

The Central Bank spend this year alone stands at €27.55m
The Central Bank spend this year alone stands at €27.55m

Gordon Deegan

The Central Bank has spent €119m on professional fees since 2011 that includes a spend of €27.55m last year.

Figures released by the Central Bank in response to a Freedom of Information request show that the spend last year was marginally bigger that the 2013 spend of €26.98m.

The largest annual spend over the period was in 2011 when €35.2m was spent.

However, the lowest spend - on a pro-rata basis - is this year with €7m spent on professional fees for the first six months.

The big winner over the period is accountancy firm Ernst & Young (EY) which received €26.8m in fees, including €11m last year.

The payments to EY have slowed down dramatically this year with the firm receiving €396,016 for the first six months of this year.

Famously, EY were auditors of Anglo Irish Bank before the bust, earning €10.3m in fees from the bank over a 10-year period.

EY Ireland recorded an 18pc increase in revenues to the end of June 2014 going from €141.49m to €166m.

Another member of the 'Big Four' accountancy firms, KPMG, received €13.42m in fees while Blackrock Financial Management got €23m in fees with the €22m of that amount paid out in 2012 and 2011.

The overall total includes legal fees. The top-earning legal firm over the five years is McCann Fitzgerald at €5.82m with the largest proportion - €2.1m - received by the firm this year.

Deloitte also feature in the top 10 receiving €5.85m for audit fees and accountancy over the five years.

Another major legal firm, Arthur Cox, received €3m in fees while the Boston Consulting Group got €4.87m over the period with the vast majority of those fees - €3.97m - in 2011.

Grant Thornton received fees totalling €2.5m over the period.

Other firms to receive more than €1m over the period include Client Solutions, D-Fine, Equiniti ICS and legal firm Mazars which received €1.8m.

Outsourcing firm Abtran got fees of €664,472 over the period.

Irish Independent

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