IT has come to light that late last year Rockfire Capital Ltd – the company in which Warrington Borough Council has invested more than £31 million – weathered a threat of being compulsorily struck off the Companies Register.

Whatever failing by Rockfire caused the Government Registrar to issue a Strike-Off notice (subsequently discontinued) is not known, but this must surely call into question its suitability as a vehicle for public funds.

Added to this is the revelation that Redwood Bank – in which the borough council bought a 33 per cent stake – was controlled by David Rowland – a man once described as a ‘shady financier’ on the floor of the House of Commons.

Why the council chose such questionable investments is unclear – one suspects it succumbed to approaches from commission-hungry brokers acting on behalf of these outfits.

At the time Cllr Ross Bowden referred to them as ‘examples of innovative financial practice’ but this evidence suggests otherwise.

No wonder that Moody’s, the respected credit agency, has warned that Warrington Borough Council is now on ‘negative credit watch’ and that such ventures had an adverse impact on its credit profile.

CHRIS HAGGETT Penketh