The collapsed Cyprus Co-operative Bank had bought services from external consultants – mainly audit and legal offices from Cyprus and abroad – worth many million euros, according to the independent committee of inquiry’s report which lists data submitted by the Co-operative Asset Management Company (SEDIPES).
“As regards the cost of purchasing external services, on the basis of the data provided to us, it was revealed that the total cost of services purchased amounted to €37 million,” the report said.
The report also notes that the highest amounts paid – that is €500,000 and above – were as follows: The total cost for Project Coral by Citi Group was €5,875,000. To Blackrock for services on strategy or management of non-performing loans, the total cost was €4,373,747 (plus VAT). To Shearman & Sterling for Project Coral the cost was €4,000,000. To Qualco for debt collection services, the cost was €2,421,134 (plus VAT).
In addition, to Grant Thornton for the Monitoring Trustee project the cost was €2,153,461.29. To Tassos Papadopoulos & Associates for various legal opinions the cost was € 1.545.623,73. To Deloitte for the implementation of IFRS 9, the cost was €1,492,959. To Grant Thornton for the transaction evaluation with Hellenic Bank which took over the good bank of Co-op, the cost was €1,242,780.85. To Moody’s Stress Test Advisory Support & Implementation, the cost was € 1,187,000.
PwC’s cost for the Development of Risk and Capital Management Frameworks and the preparation of the ICAAP & EDAEP was €1.180.480. For developing and implementing an in-house credit rating system, Deloitte took €940,592. For the project “Legal due diligence work undertaken by Legal firms appointed by the underwriter for the purpose of drafting and filing a prospectus”, the cost was €904.400,00 and went to the legal firms of Tassos Papadopoulos & Associates, Koushios, Korfiotis & Papacharalambous and Christos M. Triantafyllides.
Meanwhile, for various legal opinions from Christos M. Triantaphyllides firm the cost was €734,490.27. For various legal opinions from Christophoros Ioannou LLC, the cost was €683,833.49. For various legal opinions from George Z. Georgiou & Associates, the cost was €575,580.38. To PwC for a Collaborative Credit Sector evaluation, the cost was €535,797.50. To Moody’s for the Risk Analyst System Implementation project, the cost was €504,821.