How handy and timely that the Chartered Institute of Public Finance and Accountancy (CIPFA), were able to announce recently that Kent Council might just get back some of the money they’d invested in Iceland.
As some of you will remember senior Tories not to long ago throw their toys out the pram when the Audit commission accused Kent Council of negligence, fortunately that little misunderstanding was cleared up when Cllr Paul Carter Kent Tory head honcho and neutral KCC chief executive Peter Gilroy penned a letter demanding both a retraction and apology. See KOS report.
Its seems strange perhaps even a case of duel standards that neither the of above could bring themselves to apologise or retract claims made against me by contactors working directly for Kent council. See Daily Express report
Any how good news that Kent Council are likely to get back 90% of £50 million thought lost, wonder when it will actually turn up, still a cynic might also point out and maybe KCC Press Office could have presented the facts differently maybe something like this KENT COUNCIL LOSE £5,000,000 FOREVER, still its not that much money, about 20 years salary for one highly paid chief executive! and less than Kent Councils annual media spend for them to tell us how blooming marvellous their doing.
Tony, your £5,000,000 is not big enough in more ways than one. If you read the CIPFA report it has statements on interest that should have been paid since Nov 2008. KCC are not going to get that back either. Now since KCC were chasing the high interest rate which was probably over 6% at the time, by the time they may get some money back (again the CIPFA report guesses when) the loss of interest could be well over £3,000,000.
ReplyDeleteYou also need to bear in mind that CIPFA is just another trade body for accountants and has no other standing. ie it is not stating the view of the government, just its own appraisal of the balance sheets of the 3 Icelantic Banks concerned.
Anon 4:19
ReplyDeleteWell I had no wish to make any inference as to CIPFA independance
Tony,
ReplyDeleteI always enjoy your input, however un this case, it is simply turning a little good news into bad. Nobody pretends this is easy, or simple, but going back a few months people scoffed when Paul Carter suggested that most of the money would be recovered. Now others, not directly involved are suggesting similar thoughts, you concentrate on the lost chunk alone, when so many headlines, including some pretty disgraceful headlines inspired by the labour party, have always talked of the lost £50 million.
I, like you,will finally believe it when its back in our account, but there surely has to be some good news in this compared to where we were a few months ago??
Loosing £8,000,000 is not bad news?
ReplyDeleteWho is Mr Wells kidding? Himself I think and not the taxpayers of Kent who are still waiting for an appology from Cllr Carter. If it was a private company loosing £8,000,000 heads would roll. But not at KCC as this would be an admission of guilt.
This is our money lost and we will have to make it up in extra council tax at some time.
Chris I have to say I'm not turning good news into bad. Im just highlighting the timing, the relationship between politician and executive also pointing out, the ironic situation in which I feel KCC are ultimately responsible for trying to threaten me and my free speech, and your boss and the CE had the cheek to ask for an apology something they couldn't do in my case.
ReplyDeleteTony,
ReplyDeleteAnd as you know I supported your position because I felt you had the right of free speech which you continue to exercise.
Anon of 0853: it is still relatively good news compared to where we were some months ago. That does notmean everything is right or proper, and failures have already been highlighted in more than one system. But the fact that a degree of recovery is on the way should be acknowledged as well. That is all. Dont read more into it than was there.
Hi sorry to go off thread I have set up a new blog http://thanetpress.blogspot.com/ and would appreciate it if you would link to it as I have done to yours, it is to be exclusively for publishing local press releases with proper feeds.
ReplyDeleteI won’t be publishing anything that isn’t mainstream it will be TDC and the main local politicians press releases only.
It seemed to me that Tony was turning bad news which had been turned into good news by KCC back into bad news again. Which it is.
ReplyDeleteI think its neither good news or bad, its a situation that arose because of the collapse of the Iceland banks. The situation has been dealt with, and the best available outcome has been achieved. Its a bit like having a car accident, but discovering that you have not been injured, the car is repairable, but you have lost your excess on your insurance.
ReplyDeleteMany councils saw the collapse of the Icelantic Banks comming. Not KCC. They paid just £10,000 a year for an advice service and then because of very poor procedures or lack of procedures for handling the emails from the same company they still went ahead and invested more money after the collapse.
ReplyDeleteIn the financial world £10,000 will not buy a sausage.
So if KCC were driving the "car" they would be charged with driving with negligence. Its a bit like driving through red lights and knocking somebody down.
Its not just the Leader that should appologies to tax payers its every member of the council.
I am fascinated that David Cameron reminds his MPs that every £ spent by the Government and on MPs expenses is tax-payers money and yet his Conservative KCC and TDC (to a lesser extent) fail to understand what he is saying.
ReplyDeleteOf course it is 'good news' if most of the tax-payer's millions are returned, but the loss of a few million here(unwise deposits); waste of a few million there (KCC TV, KCC promotion and TC)doesn't seem to reult in a single resignation or apology.
Sorry Ken. I can't help seeing a loss of even a few million due to lack of foresight, bad advice,lack of responsible delegation (ONE person could put another 3 million in?)and a cavalier attitude to public money as anything but bad news.
ReplyDelete