The Government has insisted the Quinn Insurance insolvency was a matter for the courts, after the Social Democrats urged Ministers to force the release of reports setting out the costs of the company’s administration.
Social Democrats TD Róisín Shortall said it was “not good enough” that key details about fee payments to administrators Grant Thornton and their advisers remained unpublished, three days after the company was wound up with a High Court liquidation order.
The failure of the business, established by bankrupt former billionaire Seán Quinn, in 2010 cost taxpayers some €1 billion, with all motor and home insurance policyholders paying surcharges to fund its losses. Still, it is only now that the extent of professional fees paid during the insolvency process are coming to light.
Professional fees
Ms Shortall called for the release of Grant Thornton records after The Irish Times — citing Companies Office filings, private data and the administrators’ 23rd and final report to the High Court — reported that the insurer’s demise led to some €100 million in fees for accountants and lawyers who worked on the administration and litigation linked to it.
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But key details remained unclear because access was refused to the administrators’ 22 previous reports, which set out the payment of tens of millions of euro in professional fees since the administration began in 2010.
[ Quinn Insurance administrators got €375 per hour over 10 years for their workOpens in new window ]
Both Grant Thornton and administration solicitors McCann FitzGerald refused to provide the reports, although Grant Thornton said the documents “should be available” by asking the court. However, the court said it could not release them because exhibits such as the reports were not in the case file.
“It is unacceptable that details of the costs of the administration of Quinn Insurance are not a matter of public record. In fact, it appears that efforts are under way to bury the details of those costs,” said Ms Shortall. The Social Democrats finance spokeswoman said the fallout from the company’s collapse came under the remit of Minister for Finance Michael McGrath and Minister for Enterprise Simon Coveney.
“Both Ministers should confirm whether their respective departments have had sight of the reports or if they are in their possession. If they are, they should be immediately released,” she said. “If the reports have not been provided to the Ministers or their departments, they should direct Grant Thornton to release them.”
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But the two departments said they had no role, insisting questions about the administrators’ progress reports were for the courts to address.
The Department of Finance said it “has not been a notice party” to the administration. “The joint administrator was appointed by the High Court. The president of the High Court approves what is to be paid out of the Insurance Compensation Fund,” said the department.
Similarly, Mr Coveney’s department said: “The joint administrator is appointed by the High Court and this is, therefore, a matter for that court. Neither the department nor the Minister have a role in the operational activities of the joint administrators.”
