SFO investigates alleged multimillion-pound fraud at collapsed council
The Serious Fraud Office (SFO) has launched an investigation into Rockfire Investment Finance, which became embroiled in a financial scandal over how a UK council invested more than £100m into solar farms.
The UK's anti-corruption agency said it had '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'.
It added: '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's renewable energy bonds were said to have offered a return of between 3% and 6%, on top of the original funds invested. The company has since entered liquidation.
The subsequent losses contributed to Thurrock, which lies on the north bank of the River Thames immediately east of London and includes the Port of Tilbury, formally declaring effective bankruptcy in 2022 having run up debts of more than £1bn after a series of disastrous investments. The council sued the Dubai-based businessman Liam Kavanagh and his firm Rockfire Capital in London's high court last year, in a case in which the council alleged that the tycoon misused £150m of its funds for personal gain, including buying a luxury yacht and private jet.
Kavanagh appeared to have spent some of the funds to make purchases largely 'for his personal benefit', including £13.7m on a yacht and £9.1m on a Bombardier private jet, as well as using £3m for a property in Mallorca, the court filings alleged.
At the time, Kavanagh's lawyers said in a statement: 'The claim has not been validly served on Mr Kavanagh and he is confident that his application challenging the court's jurisdiction will succeed.
'Irrespective of the question of jurisdiction, Mr Kavanagh strenuously denies the allegations. If and when necessary to do so, and should the court permit the claim to proceed, Mr Kavanagh will be putting forward a full defence.'
The Guardian made efforts to contact Kavanagh and Rockfire via their lawyers after the SFO's announcement.
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Thurrock council welcomed news of the SFO's investigation. Victoria Holloway, a cabinet member, said: '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.'
The council said it had so far recouped more than £650m of public money from its various historic investments.
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