Council could claim back up to £4.2m
UP to £4.2-million of North Lincolnshire taxpayers' cash could be clawed back from stricken Icelandic banks, council chiefs have been told.
Finance bosses told an audit committee meeting the council could recoup all but £1.3-million of the £5.5-million it had invested in Heritable and Landsbanki banks which collapsed last October.
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But, the council was warned, administrators have not finished looking at banks' affairs and the situation could change, leaving the council with potential losses of up to £3.3-million.
After revealing the figures, finance chief Mike Wedgewood was praised by councillors on the audit committee for swift action preventing further losses.
Mr Wedgewood said: "Overall it's been a difficult year. But there are signs of a positive result."
At the time of the banking crisis, North Lincolnshire Council, which includes Barton, Brigg and the Isle of Axholme, had £3.5-million invested in Heritable and £2-million in Landsbanki.
North Lincolnshire Council has escaped criticism from national watchdog the Audit Commission on the Icelandic banks affair - unlike close neighbour North East Lincolnshire Council.
The Grimsby-based authority was criticised for investing money after Icelandic-institutions were no longer safe place for taxpayers money.
Humberside Police Authority had invested £5-million in the Icelandic Banks.
For the full story, buy today's Scunthorpe Telegraph.
4 Comments
by BC, North Lincs
Wednesday, July 01 2009, 9:06PM
“Swift action...positive result.....praise!!!
Morelike, whoever were responsible should be sacked and discredited from holding future public office, for firstly risking £5.5 million of public money and NLC reserves/contingencies for council services; and secondly for failing to adequately review and to act on the months of high profile FSA and media warnings and publicity that all was not well with such risky overseas investments of public money!!?? NLC's audit committee would also do well to follow their alleged praiseworthy financial geniuses, immediately on behind to the Job centre!!”
by slippery sid, Scunthorpe
Wednesday, July 01 2009, 1:37PM
“with the amount of people losing their jobs in Scunthorpe and claiming dole it looks like the council could well need this money as back up for all the unemployed who will no longer be paying council tax”
by me, on the rtail
Wednesday, July 01 2009, 1:35PM
“Wonder how much tax payers money could be clawded back if the MP's expenses fraud investigation was to be extended to say perhaps twenty two years.
They have only just been exposed so why do they not fully investigate.
If it had been a murder case then surely there is no time limit tp be followed?”
by Mac Clifford, PR Guru to the Tsars
Wednesday, July 01 2009, 8:08AM
“"After revealing the figures, finance chief Mike Wedgewood was praised by councillors on the audit committee for swift action preventing further losses."!!!!!!!!!!!!!!!!!!!!!!!!! What a staggering statement.
When will Nu Liebor controlled NLC realise that not all ST's readers are so naive, apathetic and gullible to swallow their concocted spin and the hyped up publicity on its dubious performances and conduct!!??”