Bankrupt council faces multi-million-pound fraud probe
The Serious Fraud Office (SFO) has launched an investigation into an alleged multi-million-pound fraud committed against Thurrock Council.
The anti-fraud agency opened a probe into UK-based Rockfire Investment Finance Plc.
Between 2016 and 2020, Thurrock Council invested millions in solar farms through a bond scheme sold by Rockfire Investment Finance and other companies operating within the Rockfire Group.
At the time, Rockfire offered multiple investment opportunities in renewable energy bonds, offering a return on investment between three and six per cent as well as the return on the initial bond purchase cost.
However, since then the group entered liquidation in August 2023.
The Essex-based Council was effectively declared bankrupt in December 2022, and last July, it was revealed it needed to borrow £206.7m from the government to balance its 2023-24 budget.
An investigation by BBC Panorama and The Bureau of Investigative Journalism revealed that Thurrock Council invested £655m in Rockfire Capital.
‘Catastrophic investments’
CityAM reported in March 2024 that Rockfire Capital and its director, Liam Kavanagh, were being sued by the Essex Council for alleged commercial fraud. The case is still active.
The accountancy regulator, the Financial Reporting Council (FRC), launched an investigation in January 2024 into the conduct of “a member” about Thurrock Council’s accounts.
Commenting on the new action by the SFO, director Nick Ephgrave said: “Today’s action is a significant step in our investigation concerning this suspected criminality.”
“We are grateful for the assistance of Essex Police, Thurrock Council and others in the early stages of this enquiry,” he added.
Cllr Victoria Holloway, cabinet member for place and the Environment at Thurrock, added: “Since these catastrophic investments first came to light, this administration—standing firmly alongside our residents—has consistently and rightly called for a full investigation.
“We, therefore, strongly welcome today’s announcement from the Serious Fraud Office. It represents a vital step toward securing justice and ensuring accountability on behalf of our communities.”
“Thurrock Council will continue to fully support this investigation and will make sure the SFO has access to all the information it requires, as we have continued to do since these losses were uncovered,” she noted.
Holloway added that the council is “vigorously pursuing civil claims” against Rockfire and its owner, Liam Kavanagh, “to recover public funds lost through these failed investments”.