I would like to draw the Deputy's attention to the most recent progress update report on the Special Liquidation of IBRC which was published on 5th May 2017 and which is available on the Department of Finance website: http://www.finance.gov.ie/wp-content/uploads/2017/05/170505-IBRC-Progress-update-report-report_31-Dec-16.pdf. The fees and all other third party costs as at 31 December 2016 are outlined in detail in this report.
The costs of the Special Liquidators for the liquidation from 7 February 2013 to 31 December 2016 stood at €123.11m. This figure is net of a rebate of €5m which the Department of Finance agreed with KPMG. This €123.11m relates to fees for work carried out by the KPMG special liquidation team and the scope of work undertaken by the Special Liquidators is detailed in each of the four publicly available progress update reports which have been published since the special liquidation of IBRC in 2013. The fees are net of VAT and outlays. In addition, a further €4.56m was incurred by the special liquidation team which has been recovered from NAMA.
While I am advised by the Special Liquidators that they are not in a position to provide details in relation to the number of persons, by grade, performing the work on the special liquidation given the commercial sensitivities around this information, they have provided a more detailed breakdown of the €123.1m of fees incurred to 31 December 2016:
|
Fees to 31 December 2016
|
Fees €m
|
|
Workstreams
|
Total
|
|
Deal
|
30.14
|
|
Finance, operations, compliance and creditor adjudications
|
17.74
|
|
Loan management
|
16.41
|
|
HR/IT/Facilities
|
8.28
|
|
Loan migration
|
16.72
|
|
Interest remediation
|
20.63
|
|
Taxation
|
9.32
|
|
Legal and litigation
|
4.30
|
|
Commission of investigation
|
2.71
|
|
CBI tracker mortgage examination
|
0.80
|
|
Deposits and ELG
|
1.06
|
|
Discount applied
|
(5.00)
|
|
Total
|
123.11
|
|
|
|
|
NAMA integration (recharged by bank to NAMA)
|
4.56
|
The most recent progress update report also details the cost management undertaken by the Special Liquidators. These are the various steps taken by the Special Liquidators when hiring legal and third party advisors/contractors to ensure costs were managed efficiently and effectively and minimised while ensuring the orderly wind up of IBRC.
I am further advised by the Special Liquidators that it is not possible for them at this time to confirm or estimate the final fees of the liquidation as there remains a number of tasks in the liquidation to be completed including the ongoing management of circa 175 legal cases, the completion of the creditor adjudication process, the work with the Commission of Investigation, the management of the remaining loan book and the realisation of all remaining assets.
