Frivolous use of council credit cards?

July 22, 2011

The Public Services website reports that:

“The only English local authority (Nottingham City Council) to resist Eric Pickles’ data transparency drive has hit back at the Communities Secretary over allegations that it used corporate credit cards for frivolous purchases, writes Iain Robinson.

Pickles censured Nottingham City Council’s use of the cards on flights, wine and tickets to Alton Towers.

But deputy council leader Graham Chapman said the purchases were “perfectly reasonable and proper”, and that the issue highlighted the flaws in using financial data out of context.

Chapman said the wine was for resale in council-run cafes, while the flights were reimbursed by sponsors and the theme park tickets were for disadvantaged children.”

Nottingham City Council should publish its financial data. Citizens should have a right to know how their local authority is spending their money.

I suspect that the council is right in its comments about them park tickets. I am surprised though that a credit card is being used to buy wine to resell at a council run cafe. Unless we are talking about a couple of bottles of wine though, then it would surely make more sense for the cafes to be ordering directly from suppliers on an invoice basis?

Follow the link below to read the original post.


City Council Meet Over Financial Crisis

October 9, 2008

Yesterday was a day of financial turmoil with the collapse of the Icelandic bank Isave followed by the take over of Kaupthing Edge by ING. Today Nottingham City Council has revealed that the turmoil of Icelandic banks directly affects Nottingham.

“OFFICERS at Nottingham City Council are this morning counting the cost of the authority’s investments in troubled Icelandic banks. A crisis meeting with the deputy leader of the city council, Coun Graham Chapman was scheduled for this morning.

The council has not confirmed the amount it has invested. Nottingham is one of 20 councils, which are believed to have deposits in Landbanksi or Heritable, the firm’s UK bank. The bank, a high profile victim of the global financial crisis, was taken over by the Iceland Government on Tuesday…

The finance officers at Nottingham City Council were recently praised by councillors for generating additional income this year through the authority’s investment strategy…

The council has made more money than expected because the interest paid for short term loans on the money markets has increased as banks have become wary of lending to each other. Last year, the city council made investments of about £1billion…

While Nottingham officers discuss the implications of their lending, the Local Government Association is calling on the Government to cover any losses.”

I obviously hope that Nottingham City Council will be able to recover their investments. If they fail to do so, this could result in a cut in Council Services next year.

Follow the link below to read more.

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