The pension funds of Sainsbury and the British Royal Mail are among those billed by State Street in London for fees which were not included in their contracts with the bank it has emerged.

The CEO of the National Treasury Management Agency, John Corrigan, told the public accounts committee yesterday that State Street had, in his opinion fraudulently, siphoned off €3m after handling a €4.7 billion asset disposal for the NTMA.

The financial services authority in Britain is now investigating a number of claims against State Street including that of the NTMA.

The NTMA was refunded its money in full by bank which released a statement yesterday saying the incidents were due to the actions of a small number of employees, who have since been dismissed.