Advisory fees slammed by NAO
NAO calls for better control of advisory fees following £29.1m in fees spent by British Energy
The NAO has slammed the DTI for failing to keep track of advisory fees
running into the tens of millions of pounds for work on collapsed British
Energy.
City advisers, including Deloitte, led to advisory fees being run up to £29.1m
for work relating to British Energy between September 2002 – when it collapsed –
and January 2005.
Investment bank Credit Suisse charged £11.1m in fees for advising ministers
during the period, while Deloitte were paid £10.1m.
British Energy stumped up £16.5m of the £29.1m costs, but the taxpayer footed
the rest of the bill.
The NAO recommended that fee rates should be agreed in advance.