MILLIONS of pounds have not gone missing, according to Treasury minister Charles Parkinson.

In a letter sent to States members, he has hit back at claims that taxpayers could be called on to make up a potential multi-million pound shortfall in Guernsey Electricity’s capital reserve.

On Friday, the Guernsey Press reported a £25m. difference between what was expected to be held in Treasury’s cash pool for the company’s capital spending in 2013 and what is now expected to be there – nothing.

Deputy Parkinson (pictured) said nothing had gone missing. ‘The cash pool contains £265m. and we can account for every penny,’ he said.

He said the issue was how much of that money could safely be borrowed to fund States capital projects, bearing in mind large parts of the pool consisted of deposits with Treasury by Guernsey Electricity, Guernsey Post and States departments.

This follows a £50m. discrepancy found in internal borrowing in the Treasury’s report ahead of the capital prioritisation debate. It was due to be held this week but has now been put back a month.