There are important questions which Powys County Councillors should be asking of their officers about the Council's deposits in Icelandic Banks. And these questions should be asked in public. The first question is when the most recent deposit of one million pounds in Landbanksi was made - and if it really was made on 5th September 2008, the next question should be whether this was a sensible and reasonable investment to make. We do know that a lot of other Councils had decided against Icelandic investments well before that date - as long ago as March I'm told.
The purpose of this post is not to be critical of the Council's investment decision. But I do think there is a need for a genuine inquiry - and the internal Councillor inquiry that's been set up has not much credibility, in that Councillors on the inquiry team were seen publicly applauding the officer who had taken the decisions before the inquiry had even met. This post asks whether the Council has a legitimate (or at least a moral) claim against the UK Government.
The Icelandic Bank balloon went up on October 8th (or thereabouts) - just one month after Powys made its one million deposit. But there has been an increasing number of reports that the British Government knew of the problems with Icelandic Banks as long ago as March, but kept the information secret. There really must be an 'Independent' inquiry into this. It would be quite shocking if the British Government stood back and allowed Powys County Council to invest one million pounds in banks that it knew to be an unacceptable risk - and I'm sure many other Councils as well.