AN investigation is to be launched into the actions of an individual at the heart of the financial dealings that led to the financial collapse of Thurrock Council.

No name has been given but it seems likely the council's former financial director Sean Clark is the man under the spotlight.

He made all the significant decisions regarding the failed investments, and has been criticised and castigated by a number of promintent people within the council, including its former CEO Lyn Carpenter - herself someone subject to much criticism and concern.

Today's announcement by the Financial Reporting Council (FRC), the UK body that regulates auditors and accountants, has the potential to be misleading as it refers to a 'member' being investigated, which if it were correct in the common parlance of the council, whould mean an elected councillor. However, the FRC has confirmed with Nub News this morning that the person under investigation is not a councillor but is a member of a financial regulatory body - which again gives a strong indication that it is Mr Clark in the spotlight.

The FRC has issued the following statement:

"The Financial Reporting Council ("FRC") has commenced an investigation in relation to the conduct of a Member in relation to compliance with governance, reporting, regulations and professional standards relating to Thurrock Council's operations and investment activities for the financial years ended 31 March 2018 to 31 March 2022.

"The decision was made at a meeting of the FRC's Conduct Committee on 21 November 2023.

"The investigation will be conducted by the FRC's Executive Counsel under the Accountancy Scheme."

The message comes with a 'rider' saying: "This Press Notice concerns the opening of an investigation into the relevant member. The investigation does not relate to any persons other than the relevant member and it would not be fair to treat any part of this announcement as constituting or evidencing an investigation into any other persons or entities."

A further comment from a spokesperson added: "The investigation is into an individual's conduct regarding the financial management of Thurrock Council's failed investment strategies.

"And the FRC investigation is being carried out under the Accountancy Scheme which covers individual members and member firms of professional accountancy bodies."

The collapse of the council's financial investment strategy led to significant financial loss for the authority, approaching £1.3 billion, and saw the council put under Government intervention in September 2022.

A statement from the council today (Wednesday, 3 January), says: "Throughout the intervention process, the council and the Government appointed commissioners have been updating the police and financial regulatory authorities about emerging evidence into what happened to lead to the extreme financial difficulties.

"Thurrock Council will continue to provide information to the FRC and support their investigation as it progresses."

The FRC's statement indicates that the decision was made last November, but in that interim period the council has refused to respond to Thurrock Nub News requests for information about any ongoing investigations.

The ruling Conservative group has rebutted calls for a full independent inquiry into what happened, including out-voting an opposition motion for one to be commissioned.

Council leader Cllr Andrew Jefferies, said: "I strongly welcome today's announcement from the FRC. As a council, we recognise that things went very wrong. Our focus now continues to be on taking the necessary action to put that right.

"The announcement that the FRC will investigate the issues we've raised about the failings of the past is strongly welcomed by all of us working together to create a better future for the council and the borough. We will support the investigation in any way possible.

"This shows our commitment to being open and doing whatever we can to address what happened before. We are determined to work with commissioners to drive improvement and return to financial sustainability. We are taking all appropriate action to recover the council's financial position while ensuring that we protect vulnerable residents and essential services."

Dr Dave Smith, the council's Chief Executive and Managing Director Commissioner, said: "The council is undergoing essential change to make it fit for the future. We will learn from the lessons of the past to ensure we become the best council we can be – an efficient and accountable council that our residents deserve.

"The FRC investigation is an important step in understanding the issues the council faced as we work at pace on delivering improvements that will make a real difference for the people we serve."

Cllr John Kent. leader of the oppostion Labout group, said: "We welcome this as a first step but it doesn't negate the need for a full-ranging independent inquiry into what happened and who was responsible for the catastrophic collapse of Thurrock Council that we will all be paying for with increased bills and lesser services for years to come."