Please see below the latest Conservative Group Press release dealing with the write down by £15M – £16M of the Council’s investment in Redwood Bank.
Last night (13th January 2022) at the meeting of Warrington’s Audit and Corporate Governance Committee, it was discovered that the Labour led Council is now in the position of having to write down approximately 50% of it current investment in Redwood Bank.
The revelation came, following questioning from Conservative Councillors, that the investment, standing at £ 32M needs to be impaired by a huge £15M – £16M.
This latest blow is in addition to the current difficulties affecting one of the councils other high-profile investments Together Energy.
Councillor KenCritchley (Conservative) commented,
“The Conservative Group have been consistent in our challenging of the investment the Council made in Redwood Bank.
We have expressed our concerns regarding the apparent disproportionate investment made by the council compared to the other shareholders, lets not forget in the original investment the council paid £30 million for one third of the shares and the other investors paid £5 million for 2/3 of the shares in Redwood Bank’s holding company Redwood Financial Partners Ltd.
Now we find that the Labour led Council are in the position where they are having to write down 50% of their current investment.
Combined with the Together Energy debacle this raises even more serious concerns regarding the Council’s approach to investment.
The quality of decision making, the due diligence and the effectiveness of the governance of investments are all even more keenly under the spotlight.
The investment in Redwood Bank is costing the residents of Warrington £750K in interest alone each year and now it is worth half of what we were told it was worth. This is a matter of serious concern for every resident of Warrington.“
Councillor Mark Jervis (Conservative) Voiced further concerns.
He said, “In the light of these recent troubling developments, it is a real concern that the Labour administration is continuing its practice of not providing the Audit and Corporate Governance Committee with key information to assist its review and scrutiny role.
Also, the Committee is unable to form a view on the effectiveness or otherwise of the Council’s Due Diligence processes in relation to the new investments and our Conservative Group is dismayed at the apparent ongoing woeful corporate governance of investments such as Together Energy.
Councillor Kath Buckley (Conservative Group Leader) commented,
“We have been consistent in our challenge to the high risk, high borrowing path the Labour led Council has chosen to take the people of Warrington down.
Now it looks as though some of these questionable investments are starting to unwind, the Labour leadership must be held to account for these investment failures.”
Talk about incompetence…its almost criminal…and they need firing as those dependent on council help will suffer.