Investigation Into Multimillion Pound Fraud At Collapsed Thurrock Council

The Serious Fraud Office (SFO) has launched an investigation into Rockfire Investment Finance, a company at the centre of an alleged financial scandal that saw over £100m of UK council funds channeled into solar farms. Rockfire Investment Finance, which offered renewable energy bonds with returns of 3% to 6%, has since gone into liquidation.

Between 2016 and 2020, Thurrock Council invested heavily in the bond schemes sold by Rockfire and other companies in the group. The collapse of these ventures and the subsequent financial losses pushed Thurrock Council into effective bankruptcy in 2022. The council accumulated debts surpassing £1bn after a series of failed investments.

The council has accused Dubai-based businessman Liam Kavanagh, owner of Rockfire Capital, of misusing £150m of public funds for personal purchases. These purchases reportedly include a yacht for £13.7m, a Bombardier private jet worth £9.1m, and a £3m property in Mallorca. Kavanagh has denied the allegations, stating his intent to defend himself should the case proceed in court.

The SFO confirmed it had issued Section 2 notices to financial institutions, compelling them to provide information about its inquiry into the alleged misuse of Thurrock Council’s funds. This investigation is part of a broader effort to uncover what happened to public money lost through these failed investments.

Meanwhile, Thurrock Council, through its cabinet member Victoria Holloway, has welcomed the SFO’s investigation. Holloway stated that the council remains “committed to recovering public funds” and continues pursuing civil action against Kavanagh and his firm. The council has already managed to recover £650m of public money from various investment schemes.

The case highlights the risks associated with large-scale investments by public authorities, particularly in areas such as renewable energy. It has sparked renewed concerns over oversight and accountability in the use of public funds.