Further doubt has been cast over Labour-run Haringey Council’s handling of the Icelandic bank financial crisis this week. Liberal Democrats criticised Haringey Council for failing to plan a public discussion into the loss of £37million of taxpayers at Tuesday’s Audit Committee – the ultimate watchdog committee for Haringey Council’s finances. Only after Liberal Democrats challenged the omission was an agenda item included at the meeting.

Following the requests by Liberal Democrats at the meeting for it to be discussed the Council’s Chief Financial Officer confirmed that an inquiry into the potential loss of £37 million will take place, but did not provide details of the terms of inquiry, who the inquiry will report to or who will oversee it.

Liberal Democrats demanded an independent inquiry on 13th October when it became clear that £37 million of Haringey taxpayers’ money had been placed in jeopardy by the collapse of a number of Icelandic banks.

Haringey Council had the biggest amount of money invested in Icelandic banks of all the Local Authorities in London.

Cllr Robert Gorrie, Leader of the Liberal Democrats commented:

“Haringey Council’s reluctance to be public about all the facts surrounding its investment in Icelandic banks is now continuing into its proposed investigation. It is ridiculous that at the first Audit Committee meeting following what is potentially the largest loss in the history of the Borough, Haringey Council did not see fit to even propose putting the item on the agenda.

“I am pleased that the Council has heeded Liberal Democrat calls for an inquiry into this loss. However, it is vital that the inquiry is public, independent and robust. I have made this clear in meetings with senior officers and have written to the Chief Executive of the Council stating the same view. Residents need to be reassured that an issue of this magnitude is being looked into properly and not being swept under the Haringey Labour carpet.”