More control, clearer rules.
Vaterstetten reacts to the financial disaster at Greensill Bank with a “guideline for capital investments”.
The municipality had invested around 5.5 million euros in the private bank, which had faltered in March.
Whether or how much of the money the municipality will get back is still open.
Vaterstetten
- The new requirements have now been decided by the responsible committee of the municipal council.
One keyword is the custody fees at banks, commonly known as negative interest rates.
The point is that the safety of the plant has top priority.
Investments in corporate bonds, stocks, investment funds, derivatives, foreign currencies, raw materials, precious metals should not be possible in the future.
Investments in private banks, building societies and insurance companies should be limited.
Financial management must report monthly
In addition, the management of the financial administration must submit an overview of all municipal facilities to the mayor on a monthly basis and to the financial officer of the municipal council once a quarter.
In the parish council of Vaterstetten, members are entrusted with special tasks, from waste management to business.
The financial advisor is Axel Weingärtner (Greens).
When asked about development cooperation, he said it was difficult to say whether the new directive could have prevented the greensill disaster.
“I'm almost not afraid.” However, the requirement is a major step forward and offers more security for both politics and administrative staff.
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Leonhard Spitzauer, Mayor of Vaterstetten
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In the meeting, Wolfgang Schermann (SPD parliamentary group) praised the fact that the directive is based on the regulations of other large municipalities.
The SPD would have wished for even stricter requirements in some cases, but could not enforce it.
When asked for development cooperation, Mayor Leonhard Spitzauer (CSU) emphasized that there was no misconduct on the part of the administration with regard to Greensill Bank.
All those involved acted within the framework of the cashier's instructions.
"This means that there are no legal consequences." The consequence, however, is "that we will accept penalty interest in the future investment strategy, which will reduce the community's assets".
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