Financial fiasco in the Council
Published 22/08/2012 | 10:03
I note from The Sligo Champion that following the special meeting of Sligo County Council which considered the Financial Appraisal, the County Manager told the press: "An injection of funds could be done by a number of ways including a further overdraft."
Just two years ago, in July 2010, when the revenue deficit had reached €7.5 million, councillors were asked to authorise a temporary overdraft of €3million and a loan of €15million.
The loan was to be applied to fund balances on the capital account and to reduce the deficit on the revenue account.
Last year it was discovered that none of the loan had been used to reduce the revenue deficit and to make matters worse it was found that the deficit had increased to almost €10million.
During the same period the "temporary" overdraft was increased from €3 million to €5 million; then increased to €7.5 million; then to €11 million. In the intervening period the revenue deficit has increased to €13 million. At the same time the County Council continues to hemorrhage approximately €7,000 a day, seven days a week, fifty-two weeks a year.
What Minister or what Bank Manager would provide a further overdraft for an organisation that runs its affairs in such a manner?
Yours Etc. Clr. Declan Bree, 1 High Street, Sligo.