Seven local authorities acted negligently by depositing almost £33m of taxpayers\’ money in Icelandic banks a few days before their collapse in October, the local government spending watchdog says today.
The Audit Commission found fundamental accountancy mistakes had been made by Kent, the London borough of Havering, Redcar and Cleveland, Bridgnorth, North East Lincolnshire, Restormel (Cornwall), and the South Yorkshire pensions authority.
OK, so idiot local authorities continued to stash money in these banks even when they were told that they were likely to fail.
It´s not a great argument in favour of bureaucrats having more control over our lives, is it?
This though is a little cheeky methinks.
The commission acknowledges it had itself invested £10m in Iceland but says this did not compromise its ability to analyse other organisations\’ mistakes.
"Yes, yes, I know we did it, but you were stupid to do it."