Temperatures rise over lost millions in Icelandic banks fiasco
TEMPERS erupted over the Icelandic banking fiasco in which North East Lincolnshire Council taxpayers stand to lose up to £7-million.
Council leader Andrew De Freitas was left fuming, after Conservatives posted leaflets through voters' letterboxes, in the Yarborough ward by-election, blaming him and his party for the loss.
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Flashback to our story about the hot topic.
The leaflets claimed: "Andrew De Freitas must take the blame for losing council taxpayers money, YOUR money, in Icelandic banks."
The headline on the leaflet was "Lib-Dems At Fault For £7-million Losses."
It added: "Now there's nothing left for a rainy day", alongside a cartoon depicting a woman with an umbrella in a shower of rain.
At a meeting of NELC's Audit Committee, convened to discuss the Icelandic banking fiasco, Coun De Freitas said: "It was not my responsibility to sign off documents of which specific banks we invest in."
He told members he was suffering sleepless nights and felt "crucified" over the failed investments.
He accused Conservatives of misleading voters in next week's Yarborough ward by-election.
He said the Conservatives were one-half of the joint-Liberal Democrat administration running NELC and the council's deputy leader, Keith Brookes, and three other Tories were cabinet members collectively responsible for decision- making.
As reported, an internal council report said an unnamed council officer had been disciplined over the failed investments in Icelandic banks.
NELC chief executive Tony Hunter refused to give details of the officer or of what disciplinary action had been taken.
In the report, he said the district auditor had begun his review into "the failure of the council's central framework to prevent the risk of loss to public funds".
Mr Hunter said: "I have acknowledged errors on the officer side."
A second further independent external investigation will also be held into how the missing millions ended up in the failed banks last year – £4-million of it invested just days before they collapsed.
Both reviews will be reported to councillors at a later date.
However, audit committee member Coun Iain Colquhoun (Con, Waltham) said: "You are asking me to go out from here and ask for £46 from every baby and £46 from every OAP I meet, when they are rightly worried and asking where the money is.
"They have entrusted us to find out, and no one has proved to me that they have taken responsibility. I just want to know who is responsible."
Coun Chris Shaw, the Labour Group leader, said the authority risked losing 90 per cent of its investments in Icelandic banks.
He said: "The public has lost confidence in the ability of the authority to look after their council tax money."
He added: "There has been a fundamental failure by the executive of this authority to carry out the policies."
26 Comments
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by ANDREW, grimsby
Sunday, March 22 2009, 9:23PM
“what gets me is how blase~ they are being about the whole thing, 7 million, wowo what coudl this town have done with 7 million, answers on a postcard to your local councillor”
by G.T reader, Grimsby
Sunday, March 22 2009, 12:49PM
“mr De freitas should join G.E.T for a live debate if he has nothing to hide, its time he faced the public and answer question's that many people would like answered. but hang on he's probably catching up on some sleep”
by observer, back on the edge
Sunday, March 22 2009, 11:05AM
“John.at home.
I agree and dont forget that at least two of the leading lights will be asking people to make them MP's. Here and in Cleethorpes. I don't know, at this time, what seat Doug Pickett has his eye on!”
by John, At home
Sunday, March 22 2009, 10:29AM
“Sorry that should read "strategy" - must spellcheck !”
by John, At home
Sunday, March 22 2009, 10:27AM
“I firmly believe that the majority of councillors are inept. Worse, they allow National allegiances to overcome their willingness to serve the unique needs of the community that elected them.
If all the candidates for the council were independent then I might believe that they wish to serve the community exclusively, but I think that they are split between those aiming at a career in National politics and those that are afraid of having to formulate (and fund) their own campaign startegy.”
by Optimistic Freethinker, Cleethorpes
Saturday, March 21 2009, 5:04PM
“Platinum Cathedral, the council pays a company of advisors thousands every year and those advisors warned the council for 6 months that Icelandic banks were become more and more risky. Days before they crashed the council was told to remove the investments but instead invested more. People are right that someone is to blame but you can bet it isn't the poor officer who has been made a scapegoat. The head of the finance department and the Chief Executive are the ones ultimately responsible, they are supposed to look after the money on our behalf. The politicians set the policies for the officers to follow, they don't have day-to-day decision making powers, so I can believe they were not told of these investments. They would just receive information on how much was invested overall, not each individual investment.”
by Platinum Cathedral, Grimsby
Saturday, March 21 2009, 3:31PM
“What are you attacking Cllr Defreitas for.
He is a man not a fortune teller. He did not invest money on our behalf with the intention of loosing it. He was deceived as were 37 countries in Europe and as were 115 other councils in the UK.
Everyone using this story as a soap box to vent their frustrations, including the Telegraph, should reflect on themselves.
If you had the opportunity to sign off on the finance departments decision to invest 7 million at the best possible interest rate going anywhere in Europe in order to benefit everyone, each of you would have done the same thing.
Lets use our humanity to applaud his efforts and the efforts of those like him, not give in to our base nature and kick a man simply because he has been singled out as a target by media and left to hang by the elected members of a different colour who have retarded their integrities.
He is an excellent leader of the council. His judgement is excellent.
As for all of the people complaining here about the effects of the credit crunch whilst casting blame on De Freitas......let me turn the tables round........why have you not built your nest eggs and made provision for your futures. Why have you not had the sense to invest wisely......Perhaps you should be turned out of your homes as dysfunctional bread winners and perhaps your reputation fed to the media to be snapped at by the yapping, snapping foxes and rats that some commenters on this page have sadly permitted their integrities to descend to.
Cllr De Freitas stay IN.”
by Chris, North of West
Saturday, March 21 2009, 3:23PM
“Nigel, I am so sure that you would be saying exactly the same thing if Keith Brookes was in power wouldn't you.
Yes, of course you would.
You politicians make me sick. You are all in it for yourselves, which is how NELC got in to trouble in the first place with Whitehall having to come in and sort out the mess.
There is no room for politics at local level and the sooner councillors realise that they are there to direct the policy of the council on the wishes of the electorate as a whole and not just to win votes, then all the better.
Unfortunately, I fear that while for some councillors the wish to serve is their motivation, some others I suspect is more the power and greed.”
by Nigel Wright, Healing
Saturday, March 21 2009, 2:38PM
“Reply to 'chas' greater grimsby - do you really think that the tories are as much to blame as the Lib Dems?? Lib Dems have the LEADER and Lib Dems have the cabinet member for finance.
If the issue was regarding the area of control from a Conservative cabinet member I guess you have a point. The fact is the the Leader of the council decides who is in the cabinet and has given the post of finance to a Lib Dem. The councillor must know what they are doing with finance and look into all major decisions regarding the issue.
Also you fail to notice that there are 9 cabinet members and of those 5 are Lib Dems. Any vote on party lines would therefore be won by Lib Dems (and the leader has the controlling vote).
Nowhere have I suggested that the tories are either to blame or not to blame. I am sure however that should cabinet member investigate the responsibility of another councillor there would be great upset.
The bottom line is Lib Dems 'lead' the council and Lib Dems have cabinet responsibility for finance.
If you reply to this 'chas' use your real name as I have done and don't hide behind anomous comments.”
by Casey, in the stix
Saturday, March 21 2009, 1:47PM
“BTW, before they start to give us bullship about 'delegated powers', the people who delegate the power are ultimately responsible.”