Mass resignations follow scandal in Dutch province

11th June 2009, Comments 0 comments

A wave of resignations hits the regional government of North Holland over investment in Landsbanki.

Haarlem -- All seven members of executive board of North Holland, the top tier of regional government, have resigned after an investment scandal that may cost the province close EUR 78 million.

An inquiry found that the board had violated its own investment policy when it placed nearly EUR 100 million in Landsbanki, the bankrupt Icelandic bank.

Questions mount as to whether the massive investments will ever be recovered in full.

The independent investigation also determined that the province neglected to implement risk management strategies and did not sufficiently monitor its treasurer. The province responded that it will adopt the committee's main recommendations and has already implemented a number of improvements.

It is highly unusual for an entire provincial board to resign. The last comparable incident was more than 10 years ago when the Queen's Commissioner to South Holland resigned after the province squandered tens of millions of euros in high-risk investments known as the 'Ceteco affair'.

Radio Netherlands / Expatica

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