The Communities and Local Government Select Committee has announced an inquiry into LOBO loans to local authorities by Barclays and RBS on the back of Debt Resistance UK research featured in C4 Dispatches – ‘How Councils Blow Your Millions’, (earlier post here)
The Communities and Local Government inquiry into LOBO loans is welcome news, and vindication of the tireless FOI local authority debt audit work by Debt Resistance UK volunteers. Despite being ignored for two years by Eric Pickles, slumbering financial regulators and local authorities themselves, this issue is finally being taken seriously.
Debt Resistance UK (DRUK) have serious reservations about the possible scope of the CLG inquiry and the limits of the Parliamentary Committee process to effect regulatory change.
DRUK insist the inquiry should occur in parallel with citizen pressure on local authorities and much needed regulatory enforcement action by The FCA and SFO.
Already City lapdog The FCA are seeking to distance themselves from responsibility for this fiasco, despite being directed to investigate Treasury Management Advisors by DCLG in 2009, yet refusing to do so.
Avoiding responsibilty within a cover up culture is one of the deadliest cancers facing society, imo