It’s no surprise to see Kent County Council come out fighting over the findings of a report today by the Audit Commission that describes the authority as “negligent” over its investments in three Icelandic banks.

County Hall’s ruling Conservative administration is rather peeved, putting it mildly, to have been taken to task by an organisation which itself has £10million of taxpayers’ money at risk in Iceland.

I hear that KCC toyed with the idea of taking action to try and stop the Commission labelling it negligent and sent a very strongly worded letter questioning the findings and the methodology used. (Havering council - one of the other seven councils named as negligent, did try and issue an injunction). KCC feels the verdict goes too far and while it is willing to hold its hands up to human errors does not feel the Commission has been entirely fair.

Nevertheless, the Audit Commission’s lengthy examination – available on its website link text - about how councils came to invest so much in Iceland makes interesting reading, regardless of whether you think its credibility is undermined.

For KCC, the report is an unwelcome reminder that it continued to invest while other authorities were busy either withdrawing funds or stopping investments.

There aren't many positives to come out of this saga. But had this situation not blown up, the general public would, for the most part, still be in the dark about what councils were doing with their cash in terms of treasury investment and how things worked.

As someone who believes in maximum transparency, it has to be a good thing if this unfortunate saga compels councils and others to be much more open and accountable about what they do with our money and where they invest it.

~ Read more about the report here >>>