Restormel Council invested �4m in the Icelandic bank
|
A Cornish council breached treasury policy when it invested money in the failed Icelandic bank Landsbanki, the Audit Commission has ruled.
It said the �4m Restormel council deposited was more than was permitted.
Restormel made two separate deposits of �1m and �3m - treasury rules state a single investment should be restricted to �2m.
The council said it would no longer invest more than �2m in any single organisation.
Local authorities around the UK had millions of pounds deposited with Landsbanki when it went into administration last year.
It is not known whether they will get their money back.
The Audit Commission said Restormel's potential loss of �4m could have an impact on the finances of the new One Cornwall council when it takes over in April.
|
BBC NEWS CHANNEL
E-mail this to a friend
Printable version
BBC News
Bookmark with:
What are these?