London police had millions in Iceland

LONDON, April 4 (UPI) -- London's police agency, guided by a financial adviser, pulled millions of pounds from an Iceland bank but then put the funds back in the bank, officials said.

When the money -- 30 million pounds ($44.4 million) -- was redeposited last year with Landsbanki, the Metropolitan Police Authority did not tell its adviser, Ken Hunt, The Observer reported. Hunt didn't find out until Landsbanki collapsed in October.

Hunt advised the authority in April 2008 that any money in Iceland should be withdrawn because the banks had received a negative rating from the Fitch service. In June, the authority deposited 10 million pounds ($14.8 million) and another 20 million pounds ($29.6 million) in September, two weeks before the collapse.

The authority, chaired by London Mayor Boris Johnson, supervises the Metropolitan Police, commonly known as Scotland Yard.

"This appears to be a massive breakdown in corporate governance," said John McFall, head of the Commons Treasury Committee. "Boris Johnson should make amends and hold a meeting with all of those responsible. It is a scandalous waste of public money, and we need to know that he is getting control of the authority's finances."