Coventry council faces questions over its mysterious offshore investments

[dutchman]

Coventry City Council is facing questions over a potential for offshore tax avoidance amid the Paradise Papers scandal – after senior officers admitted they do not know where its international investments reside



As with other councils, reserves of Coventry taxpayers’ money set aside for future projects are placed in banks or other companies to get the best return.

Councils can also borrow from offshore funds abroad to pay for major developments.

It has now emerged Coventry council’s money is invested in ‘banks and other investment vehicles which involve international investments’.

We have learned council officers do not know whether that council money has been invested in companies domiciled offshore.

They are checking with a third party company which advises the council on investing its money, London-based financial consultant Arlingclose.

The revelations follow questions to the council from opposition leader councillor Gary Ridley following the Paradise Papers scandal. It has revealed some councils as well as the super-rich have investment arrangements with offshore companies, including in international tax havens.

Coun Ridley is now calling for the council to come clean with Coventry taxpayers about precisely where their money resides offshore.

He is also asking which of Coventry’s leading Labour councillors, if any, are aware of where any international investments reside, and which of them signed off the council’s investment arrangements.

Coun Ridley says the public will demand a transparent and ethical investments policy at Coventry City Council.

While tax avoidance via offshore funds is not illegal, the Labour Party locally and nationally has consistently opposed it on ethical grounds.

Gary Ridley (Conservative, Woodlands) told us: “The fact that they could not answer my questions straight away is deeply concerning.

“We need to have clarity around these issues as quickly as possible,

“We need to understand what investment polices the council is pursuing.

“We need to know which councillor signed this off.

“I am sure the people of Coventry will want answers to this as quickly as possible.

“We need an ethical investment policy.

“Now the Paradise Papers are shining a light on this issue, we need to look closer to home and know how the council is investing its money.”

We are putting more questions to Coventry City Council.