Kent "arrogant" in face of damming report on Icelandic banks (Faversham and Mid Kent Liberal Democrats)

Faversham and Mid Kent Liberal Democrats <info@libdems.org.uk>

Kent "arrogant" in face of damming report on Icelandic banks

March 31, 2009 12:00 AM
Originally published by Liberal Democrats on Kent County Council

Nearly £4m of cash for city centre improvements remains unspent

Kent named as negligent in their handling of deposits in Icelandic banks

Kent County Council (KCC) Lib Dem Group Leader Trudy Dean has accused KCC of being arrogant and two faced in its response to the Audit Commission report on Icelandic banks today. The report names Kent as one of seven local authorities who were negligent in their handling of deposits in Icelandic banks. KCC responded by pointing out the AC itself had deposits in Iceland.

Trudy writes

KCC reminds people repeatedly that it has been rated as an "Excellent" Council. It was the Audit Commission who gave them that rating. They can hardly bask in the glory of one opinion, and dismiss the other in such an arrogant manner.

Secondly the Audit Commission Report concentrates on the facts that KCC broke its own Treasury rules and point to £3m of deposits which resulted from no one reading the email warning KCC against further deposits. Last month Price Waterhouse Coopers made exactly the same criticisms. How many times do KCC have to be told they got it wrong before they say "Sorry".

Notes for information:

KCC has deposited a total of £50m in Icelandic banks some on behalf of Kent Superannuation Fund, Kent Police Authority, Kent Fire and Rescue Service and District Councils including Tonbridge and Malling Borough Council.

Money deposited in Heritable Bank has already been confirmed as covered by the bank's assets and is likely to be recovered substantially less the receivers costs, which may be as much as 10%.

Glitnir and Landsbanki are based in Iceland and deposits there are subject to a ruling on whether KCC retains its preferred depositor status which may be challenged by other depositors.