Crack fraud team opens investigations into Thurrock Council's financial collapse and potential criminality after years of pressure from residents and councillors who demanded a thorough, independent probe
AFTER several years of waiting an official independent investigation has been announced into the suspected criminality surrounding the financial collapse of Thurrock Council.
The Serious Fraud Office (SFO) has today (Tuesday, 3 June) issued a series of Section 2 notices compelling financial institutions to provide information on its newly opened investigation into alleged fraud committed against Thurrock Council.
A Section 2 Notice is a demand for co-operation from the SFO to individuals and organisations it believes hold information relevant to a criminal investigation. These notices are powerful investigative tools which are routinely used by the SFO to investigate the most complex and serious fraud and bribery allegations.
Between 2016 and 2020, Thurrock Council invested millions into solar farms, via a bond scheme sold by the UK-based Rockfire Investment Finance Plc and other companies operating within the Rockfire Group.
Rockfire offered multiple investment opportunities in solar farm bonds, offering a return on investment between 3-6% as well as the return of the initial bond purchase cost. The group has since entered administration and is currently embroiled in a High Court action with the council, which is trying to recoup some of its losses.
Thurrock Council was effectively declared bankrupt in December 2022 impacting local residents through council tax rises and cuts to services. Two years earlier Thurrock Nub News exclusively revealed the huge level of borrowing that Thurrock's Conservative administration had allowed to build up.
Thurrock Council members have twice voted to ask the government to launch an independent inquiry, but successive Conservative and Labour local government ministers have rejected the requests. In February borough MPS Jen Craft and James McMurdock both stressed the need for more openness and transparency about what happened.
Director of the Serious Fraud Office, Nick Ephgrave QPM, 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."
Among those likely to be interviewd by the SFO are former council CEO Lynn Carpenter, who so far has escaped deep-seated questioning about her involvement, the council's former chief financial officer Sean Clark, who was recently damned by his professional association - the Financial Report Council, and Cllr Rob Gledhill, former leader of the council while the financial catastrophe happened.
A report by commissioners, put in place to run Thurrock Council after it went bust, found serious failings in its administration and indicated the potential for criminality, but said that was beyond the scope of its powers. At the focus of the commissioner's Best Value Report was the performance of Ms Carpenter, and it concluded her ego, her demand for dominance, lack of trust and respect for officers and her contempt for democracy led to the downfall of the authority.
A statement from Thurrock Council was issued at noon which says: "The council welcomes the news that the Serious Fraud Office has confirmed it is investigating allegations of fraud committed against Thurrock Council arising from its dealings with Rockfire Investment Finance Plc and other Rockfire companies."
Cllr Victoria Holloway, Cabinet Member for Place and the Environment, said: "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 (SFO). 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.
"Alongside this, the council is vigorously pursuing civil claims against Rockfire and its owner, Liam Kavanagh, to recover public funds lost through these failed investments. Today's announcement strengthens our resolve to see this through."
To date Thurrock Council says it has already recouped more than £650 million of public money from its various historic investments. However, the cost of doing that runs into tens of millions and the council's debt mountain remains high - at the last count around the £900 million mark,
Related stories include:
How 'screaming' Lyn Carpenter's ego, her demand for dominance, lack of trust & respect for officers and her contempt for democracy led to the downfall of Thurrock Council: https://thurrock.nub.news/news/local-news/how-screaming-lyn-carpenters-ego-her-demand-for-dominance-lack-of-trust-respect-for-officers-and-her-contempt-for-democracy-led-to-the-downfall-of-thurrock-council-188424
Experts fear failure to probe Thurrock Council may cover up major failings in public accountability: https://thurrock.nub.news/news/local-news/more-questions-about-ministers-decision-not-to-hold-inquiry-into-thurrocks-financial-collapse-226313
MP says a further probe into Thurock Council would be 'a waste of money': https://thurrock.nub.news/news/local-news/mp-criticises-residents-and-councillors-calling-for-public-inquiry-into-thurrock-council-collapse-saying-it-would-a-waste-of-money-219094
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MP expresses concern over council's dire position. https://thurrock.nub.news/news/local-news/borough-mp-pitches-into-concern-over-thurrock-councils-dire-financial-position-and-lays-the-blame-largely-at-the-door-of-officer-cohort-149010
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Fobbed off and lied to!: https://thurrock.nub.news/news/local-news/opposition-leader-welcomes-change-but-damns-council-after-he-and-media-were-stonewalled-ignored-falsely-reassured-lied-to-fobbed-off-and-misled-148768
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Debt details revealed: https://thurrock.nub.news/news/local-news/council-finally-reveals-some-details-of-its-near-15-billion-debt-mountain-and-investments
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