ECONOMY

Report questions transparency of troika’s use of financial consultants

An article by the Brussels-based EU Observer has raised questions about the way that the troika awards contracts to consultants.

According to the publication, taxpayers in Greece, Ireland, Portugal, Cyprus, and Spain have already paid over 80 million euros in fees for financial consultants.

“They are often hired without a public tender, posing questions on transparency and accountability,” says the report.

The article refers to a 12.3-million-euro contract Greece has given to US-based Blackrock Solutions and similar deals for major consultancy and audit firms in other countries that have been bailed out.

EU Observer alleges that in Cyprus, Alvarez and Marshall received a bonus amounting to 0.1 percent of the 15.7 billion recapitalization costs of local banks. In correspondence, Cyprus’s central bank chief, Panicos Demetriades claimed he agreed to the bonus “under duress”.

The deal is being investigated by Cypriot Parliament.