PAC hears department hired KPMG on IBRC inquiry without setting fee

The Department of Finance have been accused of blindly rushing into an inquiry on deals done by IBRC, without agreeing a fee for the probe into the bust bank's sales.

PAC hears department hired KPMG on IBRC inquiry without setting fee

By Juno McEnroe, Political Reporter

The Department of Finance have been accused of blindly rushing into an inquiry on deals done by IBRC, without agreeing a fee for the probe into the bust bank's sales.

Department of Finance chiefs admitted to the Public Accounts Committee today that no fee has been set for KPMG to review the deals agreed by IBRC, formerly Anglo Irish Bank.

Fianna Fáil TD Sean Fleming said he was amazed that the department was prepared to write a cheque for the probe without knowing the cost.

Department Secretary General, Derek Moran, said an hourly rate would apply for KPMG and that the overall cost would not fall back on public spending.

But Mr Fleming said: "Is this the way that you're still doing business in the Department of Finance?"

The inquiry is examining sales by IBRC over several years, where there were losses above €10m for the taxpayer.

A meeting between the department and a judge, who will also oversee the review, is also scheduled for tomorrow.

Mr Fleming said that it was now clear the department had announced the inquiry on the "blind" and that it was weeks later and the cost of it was still unknown.

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