Eircom promoters paid top-up fee

Drury Communications and Citigate Dewe Rogerson were paid a £70,000 (€88,882) success fee on top of their £700,000 payment for…

Drury Communications and Citigate Dewe Rogerson were paid a £70,000 (€88,882) success fee on top of their £700,000 payment for providing public relations and marketing advice to Government on the Eircom flotation. The fee was paid in recognition of "significant additional commitment beyond what was envisaged at the time of the fee negotiations", according to documents released under the Freedom of Information Act.

The success fee, agreed at the time that Drury and Citigate were hired, was for a maximum of 10 per cent of their fees. It was to be paid for exceptional performance "as might be determined later". It was payable at the sole discretion of the responsible ministers and was approved by the Minister for Public Enterprise, Ms O'Rourke and the Department of Finance.

Drury and Citigate had originally quoted fees of £800,000 but accepted £700,000 plus a success fee. The next most highly ranked bidder for the job quoted £725,000.