I am advised that Department of Finance officials met with the Special Liquidators of IBRC in November 2013 in order to discuss the level of costs being incurred as a result of the liquidation. This meeting was requested given the significant increase of workload being incurred over and above what was expected by the Department of Finance when the original special liquidation rates (based on discounted NAMA rates) were agreed. All aspects of the liquidation were reviewed including the on-going IBRC overheads, the Special Liquidator fees and professional advisor fees. At that meeting it was agreed that the Special Liquidators would perform a comprehensive review of their own costs and revert with a view to imposing a significant reduction. I am advised that this request for a reduction in costs from KPMG was not requested as a result of previous overcharging or failure to deliver services. Agreement was reached with KPMG in December 2013 to provide an overall reduction of €5m. All other negotiation of rebates on professional and legal fees as part of the special liquidation were a matter for the Special Liquidators who were asked by Department of Finance officials to negotiate these and this resulted in the agreement of rebates on already reduced rates with A&L Goodbody Solicitors and Linklaters Solicitors. Total rebates from these two firms amounted to €3m (to 31 December 2016) which meant that the total rebates received since the start of the liquidation are €8m. After KPMG, A&L Goodbody Solicitors and Linklaters solicitors have been the two largest recipients of fees arising from the special liquidation of IBRC.
Page 39 of the most recent progress update report from the Special Liquidators outlines the rebates agreed:
www.finance.gov.ie/wp-content/uploads/2017/05/170505-IBRC-Progress-update-report-report_31-Dec-16.pdf.
