WARRINGTON Borough Council has responded to concerns over the 'monitoring' of its controversial £30 million investment into a bank.

Redwood Bank – which the council paid £30 million to buy a 33 per cent share in – officially launched in the town in October after opening its offices at The Base in the Stadium Quarter.

But the deal sparked concerns from politicians and residents across the borough.

Campaigner Richard Buttrey, who launched a petition calling for a referendum on whether the council should have an elected mayor earlier this year, has raised fears over the 'timing of a change' to the company's 'articles of association'.

The 'articles of association' are documents containing the purpose of a firm, as well as the duties and responsibilities of its members, which need to be filed with Companies House, the UK's registrar of companies.

Mr Buttrey claims the 'change' made last year threatened to put the authority at risk.

But the council has responded to his concerns.

A spokesman said: "As part of the process of establishing Redwood Bank, the council utilised external legal and financial advisors, as well discussing at length with our external auditors, to ensure the suitability, sustainability and legality of the deal.

"We can confirm that the 'articles of association' were adopted prior to the council becoming a shareholder in the bank.

"As such, the council was not required to sign the resolution.

"We have received detailed requests for information from members of the public about Redwood Bank and we will continue to respond to these individual queries."

However, Mr Buttrey said he is not satisfied with the authority’s response and vowed to 'pursue a further explanation'.

He believes 'this whole matter calls into question the degree of due diligence, scrutiny and monitoring that has taken place'.

"The Labour Government's reason for having elected mayors was to make it clear to councillors and public alike who is ultimately accountable," he added.

"In addition, a mayor could appoint a politically balanced executive committee where all views are heard."

Mr Buttrey's petition can be signed at wbcelectedmayor.wordpress.com.

A referendum will be held if it secures 7,917 signatures.