Lib Dems call on Council leader to resign over Icelandic bank investments

10.00.00pm GMT Tue 4th Nov 2008

Cllr Jack Cohen has called for the resignation of the Tory leader of the Council

Barnet Liberal Democrats have called for an inquiry into the possible loss of nearly £30 million by Barnet Council's Tory Administration at an extraordinary Council meeting requested by the Liberal Democrats.

Councillor Jack Cohen, Leader of the Liberal Democrat Group, said there still remain many unanswered question about the Council's behaviour in investing millions of pounds in Icelandic and other foreign banks.

Cllr Wayne Casey proposed the Lib Dem motion calling for an inquiry into the investment of £27.4 million by Barnet Council in Icelandic financial institutions. Speaking "on behalf of angry residents." Cllr Casey demanded to know who made the decisions that led to this fiasco. Cllr Casey challenged the Tory Leader to own up to responsibility for the decisions taken by his administration.

Cllr Monroe Palmer added his weight to the debate by proposing an amendment warning that there is now a high risk that the Council will not get its money back and calling on the Council to limit its investments to UK and EU banks.

Cllr Cohen had earlier quizzed the Leader of the Council, Mike Freer, about his role in the investments in Iceland banks. Cllr Freer was appearing in front of Barnet's Cabinet and Overview Scrutiny Committee. In response to Cllr Cohen's question "how many times in last two years have you met with officers to look at the Council's investment portfolio", Cllr Freer revealed he had never to his recollection had any meetings or indeed ever seen a list of the Council's investments . He admitted that the first time he knew any details of where the Council deposited money including the investments in Icelandic Banks was when the news about the Icelandic Banks broke a few weeks ago.

Cllr Cohen says he is astonished, "Cllr Freer is telling us that as leader of the Council he had no idea what was going on. Either his recollection is faulty or he has lost control. The leader of the Council, a former Banker, who is paid a substantial responsibility allowance is now telling us that he had never (as far as he can recollect) been bothered to ask or check where Barnet's £300 million is deposited. If this is true it is my view that his position is untenable and he should resign"