WARRINGTON Borough Council’s proposed sale of Redwood Bank as part of the ongoing budget measures to reduce debt will remain confidential.
A Cabinet report meeting tonight (Wednesday) details the recommendation to proceed with a potential sale of the bank, which is currently being explored with a third party.
Fearing a “huge loss” from the sale, Warrington’s Debt Group campaigners had formally objected to Warrington Borough Council’s plans to discuss a potential £15 million sale of its shares in Redwood Financial Partners behind closed doors.
The Stop the Warrington Council Debt Group has wrote to all Cabinet members urging them to reject the imminent proposals which will move the decision-making process into a confidential “Part 2” session, which excludes both the public and the press.
The controversial investment saw the council borrow £30 million to invest in Redwood Financial Partners, the holding company of Redwood Bank — a move that has faced sustained public scrutiny.
A spokesperson for the group said: “The public has a clear right to know what price our council is prepared to accept for these shares. Transparency must come before commercial secrecy, especially when public borrowing of this scale is involved. The sale price should be disclosed, even if the buyer’s identity needs to be redacted, as we believe this potential sale of shares is currently being explored with a third party. Our request for openness on Redwood is not an unreasonable one”.
The group also pointed to the Government’s recent Best Value Inspection Report, which criticised the council for a “legacy of low transparency and openness in governance”.
The group spokesperson added: “The council has publicly committed to improving transparency and accountability. To honour that commitment, the Redwood share sale must be discussed openly, with full disclosure of the proposed sale price.”
The group spokesperson concluded: “We believe WBC faces a huge loss with the Redwood investment and we don’t want to see our council attempting to cover this up by discussingthis behind closed doors. It has promised transparency and it should stand by this promise. We have every right to know what’s being discussed and approved, especially in the light of the current dire financial crisis that’s going to severely impact every Warrington resident.”
The item was placed on tonight’s agenda agenda with a second discussion set for March 9th.
A Warrington Borough Council spokesperson said: ““The Council is committed to being more open and transparent with residents wherever possible and will keep as many matters as possible for discussion in the open part of the meeting (‘part 1’).
“There are still matters that must be discussed in private (‘part 2’) due to matters of commercial confidentiality. However, ‘part 2’ will only be used where absolutely necessary and in agreement with Cabinet members.
“We will keep residents informed of progress with respect to the Bank, at an appropriate time.”
*The last independent valuation of WBC’s stake in Redwood, which is available to the public, is in the 2018/19 audited accounts. That valuation was £4.3 million, a significant impairment of £26.1 million which WBC recognised in the final accounts. The agenda item is listed as ‘Key Decision – Redwood Bank Update – circa £15m.’
Warrington Worldwide approached the council for a response at the weekend, but only received it earlier today.
