Local Government Association chairman, Margaret Eaton, has launched a second broadside at the Audit Commission over the watchdog's controversial report into the Icelandic banking collapse. Cllr Eaton wrote to commission chair, Michael O'Higgins, revealing LGA ‘member councils have contacted us expressing concern' about allegedly-inaccurate, and unchecked, figures for banking reserves quoted in the commission's report. ‘It appears there may be inaccuracies. This approach is highly unsatisfactory and I trust you will be able to reassure me it will not recur,' she writes. The Audit Commission last week published a damning report on the impact of Iceland's banking collapse on local government, criticising seven authorities as ‘negligent' for depositing cash in fragile financial institutions. Cllr Eaton's letter also points out that the commission's attitude towards its own £10m Icelandic investments – which have been frozen alongside £900m of local authority money – has been less-than-severe. Cllr Eaton wants a new review.
