NAMA really is the gift that keeps on giving to Ireland’s service sector. With no sign of any let-up in the money spent by NAMA on Ernst and Young, the firm which until recently employed Enda Farrell’s wife, Alice Kramer – yesterday we learned E&Y has been appointed receivers to a Limerick developer – there are also many other firms of lawyers, receivers and property companies which continue to ride the NAMA gravy train. Today, we learn of another hitherto-overlooked benefactor of NAMA’s professional fees largesse – the recruitment company.
Yesterday in the Oireachtas, the Sinn Fein finance spokesperson Pearse Doherty asked the Minister for Finance Michael Noonan just how much NAMA was spending on recruitment fees. Remembering that the NTMA advertises vacancies online and has a dedicated Human Resources department, the response is staggering. In 2011, when the NAMA headcount went from 100 to 200, the Agency spent €316,000 and for the first nine months of 2012, it has spent €197,000. In 2012, we recently learned that NAMA has recruited 28 new employees whilst it has lost 15 – including Enda Farrell and Graham Emmett. So it seems the recruitment fees have proportionately rocketed in 2012.
In addition to external recruitment fees, it has been reported that the NAMA CEO, Brendan McDonagh takes particular and special interest in recruitment of NAMA employees, who now total 220. Brendan has in the past been reported to be working 75-hour weeks, with 5% of his working day spent on recruitment matters.
The full text of the parliamentary question is here.
Deputy Pearse Doherty: To ask the Minister for Finance if he will quantify the fees paid by the National Asset Management Agency for the recruitment of staff in 2011 and for the nine months ending 30 September 2012..
Minister for Finance, Michael Noonan: I am advised that the National Treasury Management Agency (NTMA) has incurred recruitment costs in respect of employees assigned to the National Asset Management Agency (NAMA) of €316,000 during 2011 and €197,000 for the nine months ending 30 September. Such recruitment costs include fees paid to recruitment agencies, pre-employment medical tests and psychometric testing, and advertising. The NTMA and NAMA have sought to minimise recruitment costs through the direct advertisement of staff vacancies on their websites. Under Section 42 (4) of the National Asset Management Agency Act, NAMA is required to reimburse NTMA for the costs incurred including the recruitment and assignment of staff to NAMA.
Is €500k an inappropriate amount?
The inference must be yes given it is deemed worthy of reporting like this and as part of a “gift”?
How much would be appropriate? does it compare unfavourably with AIB or BOI or IBRC or private sector comparators? What conclusions should be drawn?
The EandY comment is a bit strange? Are you implying that they should receive no further business from NAMA because of one now departed employee? Or why is it relevant? Is there an issue with their bona fides as insolvency practitioners that occurs?
@Blusterbuster, I’m afraid you’ll need refer to sister blogs AIBShootingFishInABarrel and IBRCSpotTheDifferenceNAMA for reporting on detail of their activities – BOI seemed to have exited the Intensive Care Unit, though after its H1,2012 results, that will be kept under review. This blog primarily reports on NAMA.
The blogpost above reports on the NAMA spend on recruitment and sets it in the context of NAMA’s spend on the service sector. Has NAMA been a gift? NAMA will tell you that it competitively appoints providers of services, but the amount being spent by NAMA on such services is jaw-dropping.
But with respect to the €500,000, it may or may not represent value for money. The blogpost reports the fact that it has been spent and places that expenditure in context with what we know about NAMA’s headcount and recruitment.
With respect to E&Y, it is noteworthy as NAMA has recently confirmed that there have been no disposals of assets by E&Y receivers and E&Y has not progressed from the panel of loan advisors appointed at the start of this year, to actually deal with a specific portfolio. However NAMA is still appointing E&Y as receivers. I am not implying it should not receive further insolvency work – that is a question for NAMA. I am not aware of any issue with the specific receiver’s bona fides, other than in the far wider context of E&Y being the firm which until recently employed Alice Kramer whom NAMA is suing.
Ah now here say what it is……
“Such recruitment costs include fees paid to recruitment agencies, pre-employment medical tests and psychometric testing, and advertising”
Medical Tests= Drug Tests
@blusterbuster given that a recently department employee is embroiled in a scandal,involving potentially the theft/sale/circulation of basically state secrets,a cooling off period while the relationship is reviewed would be considered normal.
How can it be improved on for example….well how about the employess at E and Y stop disseminating state secrets lets start there.
regarding E and Y and the latest ‘inside job’ or ‘heist’,it could NOT have been committed without them being a accessory.
NAMA has controls preventing sending data to private email ac’s.
To circumvent this Clyde send them to his better half Bonnie over at E and Y,who is/was able and willing to utilize the ridiculousness lack of checks and balance,controls at E and Y to forward them.
In my book that makes E and Y by implication/negligence a willing participant in the theft an circulation of state secrets, ignorance or lack of internal controls is an unacceptable and pathetic excuse,for such a gigantic collector of state fess.
NAMA must simply must insist that external service providers have MINIMUM internal controls if they are to receive DATA,they have a responsibility to NAMA and the Irish state to safeguard this data.
There should be a cooling off period,no future NAMA or state business and a complete review of the relationship,basically exclude them from all future work,goodbye E and Y,nice knowing you guys.
hmm.. no sign of advertised tender for personnel/recruitment services by nama at this page
http://www.etenders.gov.ie/search/Search_AuthProfile.aspx?ID=AA23605
Are they not required by public procurement rules to have advertised competition for such contracts or is there a minimum ceiling?