Tonight (Tuesday) sees a meeting of the Corporate Select Committee, which
will amongst other items consider a report on the Icelandic Investments that
the Council has.
Whilst I expect there will be robust discussion tonight over how the
decisions to invest where we have invested, it should be noted that the
decisions on the 2 investment's were taken by two different administration
(one under the current one, the other under the coalition) following the
'expert' advice of two different firms of treasury management advisors, at
least one of which is of the view that "the current difficulties in the
global credit markets have created an environment of challenge that could
not be and was not reasonably predicted".
In terms of what happens next, investigation are still ongoing with regards
to trying to get the money back, and tonight's meeting sets out a number of
recommendation to prevent the issue from re-occurring, I also expect that we
will a clearer answers on what impact the loss (if the funds are not
recoverable) could have on council services ? and what steps have been taken
to minimise future risks ?