The District Auditor to North East Lincolnshire Council has issued a public interest report on the Council’s investments in Icelandic banks. It identifies significant shortcomings in how the Council managed investments in 2008 - and concludes that it failed to protect the interests of taxpayers.
The report says that effective financial control systems were not in operation and senior Council officers did not adhere to the Council’s Annual Investment Strategy. If controls had been in place, and professional advice received had been acted on, then the Icelandic investments would not have been made by the Council during 2008. As well as examining in detail how the Council managed these investments, including controls, compliance arrangements and professional practice, the public interest report comments on the Council’s own internal investigations, which included disciplinary processes.