Northern Ireland

Administrator from PMS bills society almost £1m

PMS name plate
Image caption Thousands of PMS members have been unable to retrieve their savings

The latest administrator's report for the Presbyterian Mutual Society (PMS) shows that the administrator, Arthur Boyd, has so far billed the society nearly £1m for his work.

Belfast-based chartered accountant Mr Boyd was appointed in November 2008 at the request of PMS directors.

The PMS crashed in November 2008, owing almost 10,000 investors money.

Since then, larger savers have received 12% of their money back. But, those with less than £20,000 got nothing.

The report, which was issued on 15 December, covers May-November 2010.

In it, Mr Boyd said he had spent spent a significant amount of time "addressing government assistance" over the PMS crisis and following up on loans.

He also said a creditors' committee had been set up in accordance with the judge's directions.

The report said 137 PMS members with money owed totalling £28,000 have not yet agreed and as a consequence have been "excluded from any distribution."

The PMS continues to employ two members of full-time staff to assist the administrator and his staff with the day-to-day work of the society.

The report also revealed that the PMS received £1.6m between May and Nov 2012 in capital repayments. Interest payments in the same period came to £900,000.

"The number of loans still outstanding has reduced by a further 53, making a total of 410 repaid since November 2008."

In October 2010, the government said it would provide £25m in cash and a £175m loan to the PMS. The NI Executive will also provide £25m if agreement is reached.

The Presbyterian Church said it has not been formally asked to pay extra money into a bail-out fund for it.

It is thought the church's contribution could rise from £1m to £5m.

At the time Reverend Stafford Carson said the church expected to be asked to pay more but was waiting for further information.

If agreement on a rescue package is reached, it will not be in place until next April at the earliest.

Mr Carson warned that any increased contribution from the church would have to be raised from "among the same people that suffered throughout this crisis".

Chancellor George Osborne confirmed the government would provide £25m in cash and a £175m loan during his Spending Review speech in October 2010.

He said he recognised that savers with the society had suffered for "far too long".

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