Documents 'implicate' Guernsey in Landsbanki saver saga

New documents have come to light revealing how the Guernsey government failed to push for the recovery of savings of collapsed bank Landsbanki Guernsey, an action group claims.

Landsbanki Guernsey Depositors' Action Group (LGDAG) says the state failed to adequately represent depositors whose savings were trapped.

It says the inaction of the Ministry of Justice (MoJ), which is responsible for representing Guernsey in international affairs, went unpunished by Guernsey.

Icelandic subsidiary Landsbanki Guernsey collapsed last October trapping thousands of depositors' money in the failed bank.

LGDAG claims information obtained under the Freedom of Information Act reveals no meetings to recover the cash took place between the State and the MoJ between September 2008 and March 2009.

It also says no meeting took place between the MoJ and the UK Treasury regarding Landsbanki Guernsey.

Matthew Dorman, spokesman for LGDAG says: "It is clear the Guernsey Government has misled the voters and the savers of Landsbanki Guernsey."

He says the chief minister has claimed he had four meetings with Treasury officials but he did not clarify whether the meetings were to discuss Landsbanki Guernsey and has not provided minutes to prove their content.

LGDAG believes the information calls into question the chief ministers' assertion he has been "working tirelessly behind the scenes" to retrieve depositors' savings.

However, a statement issued by James Falla on behalf of the Guernsey Policy Council, says it has "never walked away from doing what it can to respond to the calls from the Landsbanki depositors".

The Policy Council says it can only act within its boundaries and it has been and continues to be the State's role to assist [the Administrator and Guernsey Financial Services Commission], not usurp them".

The Policy Council also says it has engaged with the UK Treasury as well as the Icelandic Government.

Commenting on LGDAG's use of the legislation, it says there are public interest arguments to not disclosing certain information.

Members of the Policy Council and senior officials will travel to Iceland to meet representatives of the Icelandic Government to explore Landsbanki matters further, the statement read.

Guernsey Finance and the Guernsey Government did not wish to comment any further.