UK 'ignored Iceland bank warning'

[Legal Beagles]

The government is accused of ignoring warnings in July that Iceland's banks faced collapse.

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[Niklowe]

Re: UK 'ignored Iceland bank warning'

Dear Mr Gilroy,




I noticed that public money, harvested from the good citizens of Kent by way of Council Tax has gone missing under your watch. £50 Million is the sum being reported by the press.




Can you explain to me why this investment was allowed to remain in Iceland when alarm bells have been ringing since August 2007, about the instability of the Icelandic Banks, and again as recently as May 2008 when these banks were being down graded?




There is little point all the local authorities appealing to central Government for a bailout from us the taxpayer, to replace our money as Ratepayers that your Authority has lost in a reckless investment.




I would like a full and dated explanation from yourself and the Chief Financial Officer within the next seven days as to the following- -




When was this investment made?


Why was it made, on whose recommedation and what independent advice was sought?


What checks were made on the credit worthiness of Landsbanki at the time?


What monitoring was made on this investment considering the warnings that were being put out in August 2007, and the later downgrading to BBB+?


When was the Authority first aware that Landsbanki were in financial trouble and what steps did you take to protect the ratepayers funds?




I do not wish to hear that you are making appeals to Whitehall, the officers and Councillors are legally responsible for this money, not Whitehall. This is an appalling state of affairs considering that the Local Authority has the right to extract this money from our pockets with the sanction of penal action if we do not pay and to find this level of incompetence within your Finance department.




If I do not receive a detailed explanation with seven days, who is responsible and what disciplinary steps are going to be taken, as there most certainly would be in a private enterprise, I will apply for this information with an application under the Freedom of Information Act and ensure that this goes to press.




For far too long have we had to put up with this lack of accountability at all tiers of Government. I look forward to receiving your acknowledgement and your detailed reply.
I will also be registering an official complaint with the Standards Board




Yours faithfully

N.P.Lowe




A Kent tax payer

PS. I corrected the speelling and punctuation before sending.