Pearse Doherty (Donegal, Sinn Fein)
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172. To ask the Minister for Finance the amount paid to receivers by NAMA to date and by year; the fees received by each receiver to date in tabular form; and if he will make a statement on the matter. [29483/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am advised by NAMA that receivers appointed to NAMA-secured properties are selected from NAMA's insolvency service provider panel which was established following a competitive public procurement process. I am advised that, arising from this process, very competitive fixed-fee rates were achieved relative to prevailing market norms.

I am advised that, in general, fees are not paid to receivers directly by NAMA but are instead paid out of the proceeds of assets under receivership or the management of these assets, pending realisation. Fees for any particular insolvency are set by reference to the fees quoted by the insolvency practitioner as part of the public procurement process.  All appointments are subject to on-going monitoring and evaluation and, in many cases, additional fee reductions are negotiated to ensure that fees are appropriate for the amount of work remaining on any given appointment.  Typically fees reduce as the assignment progresses and the number of assets reduces by way of disposals or otherwise.  However, this depends on the complexity of the insolvency and the issues that may emerge during its course.

I would also refer the Deputy to Section 10 of the NAMA Act which obliges NAMA to obtain the best achievable return for the State. NAMA’s preference is to work on a consensual basis with debtors so as to maximise the return from their assets. In instances where a receiver has been appointed over a debtor’s assets, it is often due to the debtor’s unwillingness to co-operate with NAMA. Upon appointment, a receiver takes control of the debtor’s assets and any income produced by them. The receiver’s legal obligation to maximise the return on the assets aligns well with NAMA’s Section 10 requirements.

The fees approved by NAMA to receivers for their work on NAMA-secured assets from inception to end-June 2018 are outlined in the table attached. This includes fees approved to receivers who were appointed to assets prior to the acquisition of the related loans by NAMA.

Insolvency Practitioner fees approved from inception to 30 June 2018