Neath Port Talbot's funds remain locked in Icelandic banks over legal wrangle
MILLIONS of pounds of taxpayers' money frozen in Icelandic banks for three years will remain there until at least this autumn because of ongoing court action.
Neath Port Talbot invested £20 million in four banks before the system failed in 2008.
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So far two of the four have between them returned just over £6 million but the other two have not repaid a penny.
And there is little chance of the council seeing any of the £8 million tied up in the non-payers until late autumn or early winter because of a legal wrangle.
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Neath Port Talbot finance director Derek Davies said: "Two of the banks are based in the UK and are administered under Scottish or English law and we are rec- eiving quarterly dividends from them.
"In relation to the two in Iceland, we have had nothing back as yet because there is a legal challenge.
"Under Icelandic law, local government investors have preferential status, so whatever assets the bank has goes to them first, and whatever is left goes to non-preferential creditors.
"The administrators determined that we have preferential status, but the non-preferential creditors took it to court.
"The court judgement was announced last month and found in our favour. But, exactly as predicted, the other creditors have appealed.
"It will now go to the appeal court, probably in September. If we lose the appeal it will make a significant impact on recovery but at the moment it is going as predicted and we do expect to win."
Comments
by NPT Watchdog, Neath and Port Talbot
Wednesday, May 11 2011, 11:20AM
“Where¿s our money gone?
Why was all this tax payers money hanging around in this Icelandic bank. Probably got there in the last few years from the huge increases in council tax and ludicrous parking charges. Neath\Port Talbot residents hard earned millions pounds could have been better spent on building new homes, repairing our roads, modernising our children¿s playgrounds or for new youth clubs, supporting local charities ect ect, surely any alternative is better to what has happened. Why did other Council finance departments see problems much sooner withdrawing their deposits from Icelandic banks? So what was Neath/Port Talbot finance department doing? The Council employs trained financial advisers who obviously failed to do some simple ¿monitoring¿ or ¿financial research¿ yet the department was responsible for the tax-payers money. At the very least Neath and Port Talbot council are guilty of gross negligence in its control of finances flouting the interests of Neath/Port Talbot¿s council tax payers who deserve a detailed explanation of what happened and who was responsible for this cavalier use of public funds.
NPT Watchdog
www.npt-watchdog.co.uk”
by diane, neath
Monday, May 02 2011, 9:54PM
“Why has the incompetent person who thought that it was a good idea to invest so heavily in foregin banks not been given the sack. And more importantly how has a council which is always pleading poverty putting up council tax slashing its employees pay and conditions to the bone got a spare 20 million quid to mess around with”
by Upper Bank, Sketty
Monday, May 02 2011, 9:39PM
“I'm glad Iceland has given the UK a two fingered salute when it comes to paying back the money. They had a vote and told the UK where we could go.
Silly billy officials all over the UK shouldn't be gambling with people's hard earned money like this. Perhaps these idiots will learn a lesson or two. Why should Icelandic folk pay for the mistakes made by idiots here?”
by Acker, Bus stop
Monday, May 02 2011, 7:42PM
“willie, Port Talbot
The sums below are approximate:
Banks A and B - £8million not returned. Legal action.
Banks C and D - £6million returned and £6million outstanding.
Total - £20million.”
by willie, Port Talbot
Monday, May 02 2011, 1:29PM
“I look at these figures and don¿t know what they mean. 20 million invested in the banks we have got 6 million back but 8 million is still tied up, what has happened to the other 6 million. Is the council putting out incorrect information or has the post missunderstood”