Warrington Borough Council, already facing criticism for its investment in a troubled energy company, has been challenged over having to write down 50% of its investment in a local bank.
At a recent meeting of the audit and corporate governance committee, it was confirmed that a £32m investment in Redwood Bank needed to be impaired by £15-16m.
This comes as local energy company, Together Energy, in which the council had invested £18m, has ceased to trade affecting 176,000 customers.
Conservative councillor Ken Critchley said the investment in Redwood Bank, combined with the problems associated with Together Energy, “raises even more serious concerns regarding the council’s approach to investment”.
A spokesman for the council said: “Redwood Bank remains on track with its original business case and is operating successfully.”
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