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KPMG are charging a lot of money to liquidate IBRC...

Some consultants for the firm are charging a standard rate of almost €300 per hour to wind down the bank.

Image: Shutterstock/Whatafoto

IBRC IS NEVER out of the headlines at present with the ongoing Siteserv controversy just one of many stories that has the watching public enthralled.

But, as it happens, even the act of liquidating the bank is costing the Irish state a lot of money.

Responding to a parliamentary question from Renua leader Lucinda Creighton, Minister for Finance Michael Noonan has outlined the rates of pay KPMG are charging to wind up the bank.

The fees being charged, excluding VAT, by the accountancy firm are:

  • Partner                                          -       €295 per hour
  • Director                                        -       €260 per hour
  • Associate Director                  -        €220 per hour
  • Manager                                       -       €190 per hour
  • Supervisor                                   -       €165 per hour
  • Senior Accountant                  -       €165 per hour
  • Semi-Senior Accountant      -       €165 per hour
  • Junior Accountant                  -       €95 per hour

Cabinet Decides Over Mortgages Issues Michael Noonan Source: Sam Boal/Photocall Ireland

“These rates are based on NAMA negotiated rates for the relevant services. These rates were put in place following a competitive tender conducted by NAMA,” Noonan said in response to Creighton’s question.

The total cost of the liquidation in terms of fees stood at €112 million in June 2014, the last time a progress update was released by KPMG to minister Noonan.

This figure was net of a €7 million rebate agreed by the accountancy firm with the Ministry of Finance at that time.

IBRC has been in special liquidation since February 2013, when the Dáil famously sat throughout the night before passing a bill to wind the bank up immediately.

Read: After several rows, Sinn Féin votes against IBRC inquiry – but it’s still happening

Read: Dáil hears new claims about Denis O’Brien’s dealings with IBRC

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