Mansfield council poised to move £7m in funds out of the Middle East in democracy stance

Each year, the authority has to review its treasury management strategy which details how and where it stores its financial reserves – and at a meeting of the council’s governance and standards committee it was decided to move the cash.

It had been stored with the Abu Dhabi Bank in the United Arab Emirates and will now be moved as part of a wider policy to no longer store deposit money with that state or Qatar.

The decision was proposed by committee chairman Councillor Mark Fretwell and unanimously supported by all members before being ratified at a meeting of the authority’s full council earlier this month.

It means that for all future investments officers will only use countries that are established democracies and the banks must meet the required standards on creditworthiness.

Also, when money matures in countries that are not established democracies it should not be rolled over or reinvested in that country.

Speaking about the council’s decision, Coun Fretwell, who is ward councillor for Kingsway, said: “Personally I feel it is wrong for us as a council to be holding money on deposit with banks from repressive regimes, from a moral and also a sound business viewpoint.

“I was therefore pleased that fellow committee members of the governance and standards committee, which I chair, agreed unanimously to a change in the council’s treasury management strategy.

“I feel very proud that this change, which I initiated, was then fully backed by the full council on March 9. This will mean £7 million that was on deposit with the Abu Dhabi Bank will now be moved once it matures over the next three months.

“This is a victory for everyone who believes in democracy and especially those that are concerned about human rights abuses around the world.

“It also shows that hard working and diligent backbench councillors can and do influence council policy.”

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