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THE ACCELERATED WIND-up of the Irish Banking Resolution Corporation has cost the state just under €112 million so far.
The figure is contained in a progress report compiled by special liquidator KPMG for finance minister Michael Noonan, published today.
Total fees came to €119.2 million, with KPMG agreeing a rebate of €7.6 million to the state at the prompting of the minister.
The majority of the fees will go to the KPMG special liquidation team, which has billed just shy of €48.5 million. Legal advisors were paid just under €27 million, while other professional service firms bagged €14.9 million.
The finance minister said that the original estimated wind up costs of IBRC, which was supposed to be shuttered in 2020, had been €1.1 billion.
In addition, the report states that the €12.9 billion advanced by NAMA to the IBRC in the form of bonds at the time of the prom note deal will be repaid in full by the end of the third quarter of this year.
It is understood that IBRC will essentially be wound up as a going concern before the end of the year, although the company will continue to exist to fight legal actions it is currently engaged with, most notably the case against the Quinn family.
Under the bonnet
The report allows a rare view of the workings of IBRC as it wound up.
Since the decision to wind up the company was taken on the night of the revision of the promissory note guarantee, it has sold €21.7 billion of loans, or 90 per cent of the total loan book.
The sales were spread across 52 separate processes, with a total of 345 different parties registered as potential buyers throughout the process, hailing from 13 different countries.
In all, 201 individual bids were registered across six different portfolios. with the Irish originated corporate loan book named project evergreen attracting the most interest with a total of 58 indicative and 20 binding bids.
In addition to the loan portfolios, an interest originally held by INBS, which was acting as a joint venture partner, in an apartment block in South County Dublin was also sold.
It is understood that the entire Anglo Irish Bank art collection has now been sold, with the exception of three pieces.
Project Sand
Project Sand, which related to mortgages originated in Ireland, has proved the most difficult to shift, with only two binding bids out of 13 original suitors for the portfolio.
Only around 64 per cent of Project Sand was originally sold, with the remainder returned to the IBRC.
It is thought that a new valuer will now be appointed to run the rule over the remaining mortgage assets in Project Sand and elsewhere before they are released for sale at current market rates.
Sources indicated that the remaining residential mortgages are likely now to be sold as a single entity, rather than breaking them up and allowing individual mortgage borrowers the chance to buy back their own loans, as had been mooted.
Finance Minister Michael Noonan today commended the staff of IBRC, the special liquidator, and the staff of professional and legal advisors retained to work on the wind up.
The total cost saving to the state of the promissory note deal, of which the liquidation of IBRC was a part of, is thought to be around €20 billion over the next ten years, according to the report.
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It’s sickening. Just to throw the thing in the bin costs €112m+. And Childline having to scale back services because of a €140k shortfall. Sickening.
Well done KPMG.
The loss of auditing fees from these banks when you were their auditors should be covered by this little windfall.
spot on John!
Amen John.
A hundred million to fatten up their cronies wallets with Irish taxpayer’s money.
They should be forensically investigated and jailed for their criminality.
KPMG “We audit the way you want us to!”
Where is that girl who’s daddy is high up in KPMG now?
What a pathetic stupid comment !!!
And here come the FG/FF/Lab brigade to tell us that the bank bailout has absolutely nothing to do with austerity.
Sure whats a few hundred billion between us and our good buddies in Europe eh lads.
It was all your fault shakka.
Have to love the line were it states the accelerated windup ONLY cost the state 109 million, This is money that could have funded sections were they are cutting the f**k out of services.
This is an obscene amount of money to pay to wind up this failed bank. Why wasn’t a fee agreed in advance and a proper quotation system used. This total cost should be recovered from the auditors of Anglo as they should not have signed off on their accounts saying they were fine.
Next..investigation into KPMG… 6 months later…Investigation into KPMG costs state 100 million… Lawyers, accountants and Bankers…. They have it sussed goodo they do..
Borders on lazy journalism to just regurgitate a government press release and give a figure of e100m as the cost. The _true_ cost is the difference between what the state paid for the loans and what they were sold for.
Good luck getting that information, there’s no way IBRC will give it out.
It merely shows how corrupt this so-called Republic has become. The Republic is dead, long live the Republic.
What a waste.
Couldn’t that money have been used to employ more politicians and pay to help them travel around the country?
How can we be sure these figures are correct? Perhaps there needs to be an audit!
The KPMG charges are astronominical!
Day light robbery!
Weren’t they AIBPs Auditors?
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