More than £4.3m returned to North East Lincolnshire Council from banks
NORTH East Lincolnshire Council has received more than half of the money back from doomed Icelandic banks.
As reported, the council invested a total of £7 million in the banks before they collapsed in 2008.
The authority was slammed by the Audit Commission for investing taxpayers' money, even after warnings about the banks' prospects were known. A total of £4.5 million was invested in Kaupthing, Singer And Friedlander Ltd and £2.5 million was invested in Landsbanki.
Now, more than £4.3 million has been returned.
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A council spokesman said two payments from the winding-up board of Landsbanki totalling £1,048,000 had been paid.
The payments follow successful legal action on behalf of local authority creditors in the Icelandic Supreme Court.
The spokesman said: "The positive outcome means that we can expect to eventually receive 100 per cent of the original sums invested."
At Kaupthing, Singer and Friedlander (KSF) the administration of the bank continues to progress as expected. Recoveries currently stand at 73p in the pound with a forecast estimated to be around 86p in the pound.
At East Lindsey District Council, £4 million of taxpayers' money was invested in Icelandic banks and £3.1 million has been returned.
Administrators of Heritable Bank have made regular payments along with Glitnir and Kaupthing, Singer and Friedlander.
Comments
by para_handy
Sunday, October 14 2012, 9:11PM
“by whatatown
"so, seeing as the hard up council tax payers have made up this loss prior to this refund, does that mean the council will be refunding this money back to us?
I doubt the council tax payer will benefit! The latest revelation that council tax is going to be frozen for anther year will have sent the elite into a serious huddle!
To maintain their lavish lifestyle devoid of cut-backs and austerity our so called executives will be blue sky dreaming ever more devious ways to force us to pay into their coffers. They're all in it together.......and we are on the outside! How many more 400% plus hikes will be dreamed up to replace frozen council tax.”
by whatatown
Sunday, October 14 2012, 7:23PM
“so, seeing as the hard up council tax payers have made up this loss prior to this refund, does that mean the council will be refunding this money back to us?
or will it go into another balfour-beaty/nelc council money creaming exercise cleverly hidden over the next couple of years as some much needed consultancy over a program of repairs.”
by smoker
Saturday, October 13 2012, 4:53PM
“Speech24,
Lots of political play and comments have been made over the months blaming certain councillors at the time. The implication being that the money was lost. It needs pointing out that the mistake was made by a staff member and if you want to blame anyone blame the finance officer at the time. I doubt that those same people that made the accusations will now praise the recovery of the money. I just thought I would make that non political point.”
by speech24
Saturday, October 13 2012, 3:43PM
“Smoker the money hasn't been paid back yet, 4million still owed, so really incompetence as usual, what we expect really from polytechnic educated council idiots, whom it seems are incapable of including inflation and investment returns when quoting lost income.”
by smoker
Saturday, October 13 2012, 2:28PM
“All those that have made sarcastic comments about that money in here take note.”