A Clear Case of Black (Ian) and White (Wash)

It's not often that Clameur de Haro finds himself agreeing with Geoff Southern about anything, but CdeH stands four-square with Mr Southern in his condemnation of the glossing-over by a clearly embarrassed and defensive Establishment of the incompetence and dereliction of fiduciary duty to the taxpayer exhibited by States' Treasurer Ian Black (who, CdeH notes, reportedly attempted to deflect the blame on to the former TTS CEO) in failing to ensure that the incinerator contract was hedged against an adverse exchange rate movement.

This is such a basic requirement - in CdeH's private sector worlds, both past and present, even comparatively junior mid-level finance executives are aware of the need to hedge a substantial currency risk exposure - that its omission virtually defies belief.

Are we to assume that no-one at all, in either the Treasury or TTS, realised the need? Because if that really is the case, then the implications for the management of Jersey's public finances, politely describable as sub-optimal at the best of times, are truly frightening. And the proposal to place Treasury accountants in all departments suddenly looks like not a very good idea at all.

Catching up on the last couple of weeks' Jersey Evening [sic] Post's back numbers since returning to the fold, Clameur de Haro spied Christine Herbert's Business Focus of 28 July, revealing that the Treasury is to deploy more public funds into the markets: presumably this will involve Mr Black's professional oversight of the investment strategy and the investment advisers.

Time for Under The Mattress as a safer option, maybe?

Add to del.icio.usDigg It!Stumble This