Over €100m spent on consultants on banking crisis

//Over €100m spent on consultants on banking crisis

Over €100m spent on consultants on banking crisis

Friday 21 February 2014 16.10

Of the €103m spent, the State recouped €85.4 from the banks - leaving a net cost of €18.1m Of the €103m spent, the State recouped €85.4 from the banks – leaving a net cost of €18.1m

The State has spent €103m on consultancy fees in relation to the banking crisis since the Government came to office.

The figures were released in a Dáil reply to Fianna Fáil’s finance spokesman Michael McGrath by Finance Minister Michael Noonan.

The State recouped €85.4 from the banks – leaving a net cost of €18.1m.

The figures show the biggest spender was the Central Bank which incurred costs of €75m since 2011.

The bulk related to recapitalising Irish banks and stress tests.

Advice on the liquidation of IBRC cost €1m.

The Central Bank recovered all the costs either directly from the Irish banks or from a levy on the banking industry.

It did not list the names of the consultants it hired.

The Department of Finance spent a total of €5.8m. It recouped €2.4m from the banks.

The bulk of the Department’s spending was on legal advice. It paid €4.6m to law firm Arthur Cox and €1m to legal practice Matheson.

The National Treasury Management Agency spent €22.7m on consultancy and recouped €8m from the banks.

The biggest consultancy payments were to merchant bank Goldman Sachs which was paid €9.1m, Arthur Cox received €7.6m and management consultants McKinsey was paid €4.4m.

In a statement Michael McGrath said the spending showed an “extraordinary over-dependence on consultants and lack of expertise within the Department of Finance, the NTMA and the Central Bank.”

He added a more selective use of consultants would reduce costs and help create a greater focus on accountability.

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By | 2014-02-21T16:54:56+00:00 February 21st, 2014|Business|0 Comments