THOUSANDS of pounds of public donations to hospitals intended to help fight ill health have been invested in a chocolate company.

Reports released under Freedom of Information laws reveal Gloucestershire Hospitals NHS Foundation Trust General Charitable Fund, the body responsible for managing donations from satisfied patients and well-wishers, has used some of the cash to buy nearly £13,500 worth of shares in chocolate-maker Cadbury.

The registered charity has also bought more than £70,000-worth of shares in failing banks HBOS and Royal Bank of Scotland.

Despite making the fight against obesity a priority in the county, Gloucestershire health chiefs have defended their choice of investments.

A spokesman for Gloucestershire Hospitals NHS Foundation Trust said: "Trustees to the Charitable Funds have an approved investment policy which is regularly reviewed and the Trust's associated investment managers work within this policy.

"Holdings in Cadbury, which represents 0.42 per cent of the total investment portfolio, are consistent with the policy."

The charitable fund currently has an investment portfolio worth more than £2.3 million, which is managed on its behalf by Barclays.

At the end of December, the fund held £9,702 worth of shares in Cadbury. Barclays predicts it will yield a gross profit of £281 by the end of the financial year.

Andrew Gravells, chairman of Gloucestershire County Council's health overview and scrutiny committee, said he could see nothing wrong with the investment.

He said: "I don't think there's any suggestion the hospitals are encouraging people to eat chocolate, and there is even evidence it can be good for you when eaten sensibly."

But Cheltenham MP Martin Horwood, a former director of funding for the Alzheimer's Society, said charities should consider the morality of their investments.

He said: "From personal experience, I know there is a question of appropriateness as well as profitability when it comes to choosing where to invest as a charity.

"I think a hospital does have the same moral responsibilities. While I am not suggesting Cadbury is in any way immoral, there is the question of what is proper in terms of investments."

Tam Fry, a board member of the National Obesity Forum, also raised concerns.

He said: " I would hope the hospital does not endorse Cadbury in any other way."