Rutland County Council had £1 million invested in collapsed Icelandic banks back in 2008
Administrators for Heritable Bank, the UK arm of Landsbanki, original said investors should get back 80 per cent of their cash. Rutland County Council has now received 98% This week it has
said it is likely to right of £20,000
Rutland County Council was one of two council the who took a large gamble with public money
the other was Charnwood Borough Council both had £1 million of taxpayers' money tied up in Heritable Bank when its parent company Landsbanki collapsed.
At the time Rutland County Council leader Roger Begy said: "We look forward to seeing the detail on this.
"The good news is that unlike those with money invested in other Icelandic banks, we are looking at getting about 80 per cent back.
"But whatever the balance, it will not affect frontline services.
"With some prudential work we have been doing in the last 18 months we believe we should be able to cover the £200,000 loss."
The council was exonerated in a report published by the Audit Commission, which said it did nothing improper when investing the £1 million in the Heritable Bank.
However, the report added that councillors and staff should be better trained in the skills associated with the investment of surplus public funds.
At the same time it was reported Charnwood Borough Council had broken its own finance rules by depositing money in the Icelandic bank for four times longer than its maximum limit of three months.
A junior member of staff who authorised the investment was subsequently suspended.
As normal no action was taken at Rutland County Council.
Management of tax payers money has never been a highlight of Rutland County Council.
Not long after this incident the council found one million pounds just hours before a budget
meeting no explanation was given, front page news for the Rutland Times as the council
announced the mysterious find would not stop the large scale staff cuts.
Next came the Larkfleet £1.88 million pound loss.
