Audit Commission admits £10m Icelandic deposit
16/10/2008
The Audit Commission, a watchdog for national and local government spending, has confessed it has £10m in Icelandic bank accounts. In April, the watchdog deposited £5m into Landsbanki, and in July another £5m was placed into Iceland's Heritable Bank.
A spokesperson for the Audit Commission - whose remit is to monitor £180bn of public spending - said the Icelandic investments were in "full compliance" with their guidelines "on prudent investment".
The deposits account for about 4% of the Audit Commission's annual turnover. Although the watchdog said it did not expect the investments to affect its future operations or staffing, it has launched an internal review into how the deposit decision was taken. The Audit Commission said it expected the National Audit Office, which audits its finances, to launch an investigation.
The Audit Commission issued a statement this morning, in which they insist the two banks had strong credit ratings at the time of the investment: "Like other public bodies, the commission is obliged to maximise returns on its working reserves."
Another institution with Icelandic deposits is Oxford University, which has deposited £30m into the country's banks. The university authorities said it has sufficient cash reserves to cover the requirements of colleges, and that no deposits were made in the last 18 months.
A spokesperson for the Audit Commission - whose remit is to monitor £180bn of public spending - said the Icelandic investments were in "full compliance" with their guidelines "on prudent investment".
The deposits account for about 4% of the Audit Commission's annual turnover. Although the watchdog said it did not expect the investments to affect its future operations or staffing, it has launched an internal review into how the deposit decision was taken. The Audit Commission said it expected the National Audit Office, which audits its finances, to launch an investigation.
The Audit Commission issued a statement this morning, in which they insist the two banks had strong credit ratings at the time of the investment: "Like other public bodies, the commission is obliged to maximise returns on its working reserves."
Another institution with Icelandic deposits is Oxford University, which has deposited £30m into the country's banks. The university authorities said it has sufficient cash reserves to cover the requirements of colleges, and that no deposits were made in the last 18 months.
