OPPOSITION Tories say they are “hugely concerned” with Labour-controlled Warrington Borough Council’s links with a Monaco-based financier which has made national headlines.
The Council’s Conservative Group say they were shocked to read in a Financial Times article the extent of the interrelationships between the Monaco-based financier and the Council’s Treasury investments.
The Financial Times report headlined, “Indebted Warrington council ties to Monaco financier under scrutiny” and sub-headed, “Labour-run authority loses millions of pounds on investments linked to matchmaker.”
The Tories say the details contained in the article are “hugely concerning”, stating that the “Mailbox” deal was just one of £120M of investments Warrington made since 2017 that have links to the financier.
To add to the concerns the Council’s £10M mailbox investment (In a single asset property asset based in Birmingham) has recently been valued at just £1.3M.
They say the article raises the most serious questions as to why, elected members, Full Council and the Audit and Corporate Governance Committee were not made aware of these links.
Cllr Ken Critchley Conservative Finance spokesman said: “In an organisation that claims to be Open and Transparent surely these links were a material matter that needed to be brought to the attention of elected members?
“Instead the relationship seems to have been kept from elected members and the public.
“Perhaps this explains why the reporting of the Council’s investment in the Altana funds and the M7 investments have been presented, in the Conservative Group’s opinion, in a misleading way to full Council and the Audit and Corporate Governance Committee.
“The Conservative Group has been raising concerns for some time about the lack of oversight of the Council’s Treasury Management activities and the total lack of openness and transparency of the Council, this article appears to completely vindicate those concerns.
“The Conservative Group will be renewing its call for an independent investigation into the financial affairs of the Council.
“We are calling for the Labour Leadership to take responsibility for this latest press revelation, that once again puts the lack of proper Governance and the general lack of Openness and Transparency at the Council into the public domain.
Cllr. Critchley added: “I have sat on the Audit and Corporate Governance Committee for three years and the extent of this relationship has never been presented to that committee.
“The Audit and Corporate Governance committee is charged with the scrutiny of the Treasury Management activities of the Council.
“Why were we not made aware of the depth of the relationship that has been reported in the Financial Times article? who knew about it? who was involved? who made the decision not to brief the Audit and Corporate Governance Committee about the extent of this relationship?
“During the past year we have been trying to understand the Altana-associated investments of the Council, but have been frustrated by information requested not being provided, for example, it took a Bloomberg article to reveal that the Altana Bond fund the Council was invested in was heavily skewed to junk debt.
“I also pushed to understand why during 2023, despite the information being in the public domain, the Audit and Corporate Governance Committee were not made aware of the deteriorating financial state of the Mailbox investment. But the meeting at which a review of the Mailbox investment was to be presented descended into chaos when a senior officer walked out. To now read in the Financial Times article of the Monaco-based financier’s association with this deal, raises more questions about the Council’s openness and transparency in relation to the Mailbox investment.
“On too many occasions elected members of the Council have discovered from the press matters that should have been reported to them. I firmly believe that for the sake of the taxpayers and residents of Warrington, a Best value Inspection review by government-appointed investigators is urgently needed, to restore confidence in the governance of the Council and its financial activities.”
In response Cllr. Denis Matthews Labour’s Cabinet Member for Corporate Finance said: “It saddens me to find that in the final days before the elections the local Conservative Group have decided to focus upon issues that have been considered, reports produced, and discussions held concerning many of the matters raised. It is in my opinion reasonable to expect all political parties, and the individual candidates who stand for them, to present a positive vision of what they offer for the residents of Warrington. If not now, when?
“With the Tory record of national failure – rising taxes, rising mortgage rates, and rising food prices – it is perhaps clear why talking about issues that directly impact the lives of our residents is difficult ground.
“The Labour administration is and has always been, open and transparent about the town’s finances. Council committees that consider treasury management are open to the public and their papers are available on the WBC website for all to view.
“Our town’s diverse commercial investment portfolio generates over £23m in profit every year and is a significant reason why we have been able to deliver a legally balanced budget for
2024/25. They are not the problem, but in fact have been part of the solution to help avoid the full impact of Conservative national government austerity.
“On Thursday 2nd May, the people of Warrington will face the simple question of what have the Conservatives delivered for Warrington in the past 14 years. With the Tory record of
national failure, what positive vision do local Conservative candidates offer?”