Auckland Council losses hit $2.7 billion

Matt Nippert reports:

Auckland Council interest rate hedging swaps have accumulated $2.74 billion in unrealised losses and fixed the cost of its $10b in borrowings at double current market rates, documents show.

Incredible, and still no one is willing to apologise or be held accountable.

“Auckland Council’s Treasury Management Steering Group includes a PWC partner and other private sector experts in debt management and investment policy. Its policy reflects that of other large council and corporate entities and is regarded as good practice,” the spokesperson said.

If losing $2.7 billion is regarded by the Council as good practice, I’d hate to see what they regard as poor practice