Is a police probe more likely after government again delays publishing details of its commissioners' report into Thurrock Council financial collapse? Essex Police has championed the work of its special investigations team

By Neil Speight 9th Mar 2023

Controversial financial broker and businessman Liam Kavanagh and Thurrock Council's former senior finance officer Sean Clark.
Controversial financial broker and businessman Liam Kavanagh and Thurrock Council's former senior finance officer Sean Clark.

JUST a few weeks after Thurrock divisional police commander Chief Inspector Mark Barber told a borough audience his force was possibly not up to the complex task of investigating possible fraud within Thurrock Council over its disastrous financial collapse, Essex Police has this week been championing the work of its economic crime unit.

At a public meeting in Chadwell St Mary last month, residents echoed many calls made on social media when they asked why Essex Police were not investigating the financial mismanagement at Thurrock Council which has seen hundreds of millions of pounds lost in investment deals that have gone sour.

Many were concluded in partnership with a high-profile entrepreneur branded 'a dodgy dealer' by a High Court judge who damned him for his deceit and dishonesty.

The businessman, Liam Kavanagh, has been linked by high profile investigations into Thurrock's financial catastrophe.

Statements by Thurrock Council staff about its senior finance officer Sean Clark going off for 'secret meetings' and being 'off to see the City boys to play with our money' have gone legally unchallenged. That is despite hundreds of millions being lost and millions of 'commission' being paid.

And apparently the lack of challenge extends to the police.

At the Chadwell meeting Essex Deputy Police, Fire and Crime Commissioner Jane Gardner and Thurrock's divisional police commander CI Barber were asked: "Which police are investigating this massive theft? Is it Essex Police or the Serious Fraud Office?

"Every single person is going to be affected by this money stolen from Thurrock Council. Ten grand is being taken from every single person in Thurrock. Persons or persons unknown have literally taken £10,000 from every resident.

"What are the police doing about it?"

Ms Gardner declined to be drawn into comment. However, CI Barber was a little more forthcoming. He said: "I understand your frustration. If there has been wrongdoing we have to find out who should be held to account.

"There are many other agencies investigating and obviously its government-led at the moment. From an Essex Police standpoint that's all I can say really.

Local police chief CI played down the possibility of Essex Police getting involved in Thurrock Council's financial colapse - but will the force eventually become involved in a day of reckoning?

"If it goes to an investigation there are specialists, like for example City of London Police. They may be delegated to make an investigation but at this moment it's not Essex police."

This week Essex Police took to social media to praise its investigative financial team and appeared specifically included 'investment scams' within its remit.

Many residents and borough councillors have already expressed their belief that there has been significant malpractice, possibly including criminality, within the detritus that has seen Thurrock's millions pour down the drain. There have been numerous calls – apparently unheeded – for a police investigation.

At the moment all the investigation work into what has been happening at Conservative-run Thurrock has been carried out by officers from fellow Tory-run Essex County Council and at the behest of the Tory local government minister.

It has been described by some as 'the foxes being asked to investigate after the chicken coop has been raided'.

Whether Essex Police has the details expertise to probe into such a complex issue as the misbehaviour at Thurrock Council may be a moot point, but the force is showcasing its talents nevertheless.

It says it has an economic crime unit with 'a team of specially trained officers who carry out complex fraud investigations.

Its team leader, Detective Sergeant Shelley Tarling says: "We work to understand new and evolving crime threats and develop effective working partnerships with other agencies to maximise the effectiveness of each investigation."

Among the list of crimes successfully uncovered by DS Tarling's team include cases of abuse of power where employees have defrauded their employers.

That would seem a match to what is alleged to have happened within the corridors of power at Thurrock Council. What actually happened remains largely undisclosed.

Despite months of work by highly paid commissioners, their report remains unpublished.

The commissioners were charged with delving into 'the governance, audit (internal and external), risk management, overview and scrutiny functions of the Council!

Commissioning the investigation, the government spoke of 'serious allegations' against the council.

Initially the findings of the investigation were to be published in December last year.

That got pushed back to February because of the amount of items of concern that were uncovered.

Government minister Lee Rowley.

An interim briefing from local government minister Lee Rowley in January did note spare the rod, saying the recent leadership and management of the council has 'deep systemic weaknesses'.

In a statement in the House of Commons Mr Rowley has detailed the many failings of the council which is £1.5 billion in debt and says that the external investigations currently being run by commissioners it has appointed will now delve even deeper – not just looking at financial maladministration but functions associated with the governance, scrutiny and transparency of strategic decision-making by the authority.

It was expected that the report of the commissioners would be submitted to government by 17 February, with the outcomes published soon after.

Nub News understands the submission was made but a public announcement was put back for more consideration.

Sources within the council has indicated the government would finally speak yesterday, Wednesday, 8 March, but silence prevailed.

Those same sources now say the government has delayed because it needs to take legal advice on the implications for those named in the report. Nub News has been told that the spotlight is as much on senior councillors as officers – but the government may be wary of allocating blame because it fears legal action – while the publicity is not likely to favour Conservative councillors in the run up to May's local elections.

Opponents and campaigners locally fear that parts of the report may be redacted or even omitted – hence there may be renewed calls for an independent probe – led by the police.

Meanwhile, Essex Police say they are happy to invite reports from the public about possible wrongdoing related to economic crime.

The force says: "If you, or someone you know, has been the victim of an economic crime, you can report to Action Fraud.

For more information and advice visit Action Fraud.

     

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