Latest news with #Rockfire
Telegraph
03-06-2025
- Business
- Telegraph
Fraud office investigates solar farm deals that sank council
The Serious Fraud Office (SFO) has launched an investigation into a company that took millions from an Essex council through alleged sham solar farm investments. Rockfire Investment Finance is accused of drawing Thurrock borough council into a fraudulent scheme that ultimately led to the local authority's bankruptcy. The council poured £655m of taxpayers' money into bond investments sold by Rockfire between 2016 and 2020. Rockfire promised it would provide returns of up to 6pc a year, underwritten by investments in solar farms across the UK. Thurrock borrowed more than £1bn from about 150 other local councils, in part to fund its investments in Rockfire's schemes. However, the deals went sour and the local authority was later declared effectively bankrupt in December 2022 after Rockfire failed to generate the promised returns. Thurrock was left with debts of £1.5bn at the time of its bankruptcy, while Rockfire is now in liquidation. No political party had overall control of the council when the investments were made. Thurrock has been Labour controlled since May 2024. The SFO has served a series of so-called Section 2 notices to financial institutions, requiring them to hand over information on Rockfire or face criminal sanctions themselves. Nick Ephgrave, the SFO's director, 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 inquiry.' Thurrock council described the investigation as a 'vital step toward securing justice and ensuring accountability on behalf of our communities'. Victoria Holloway, a Labour councillor since 2024, 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. '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.' The council has accused Mr Kavanagh of misappropriating funds to buy a yacht, private jet, and a country estate in Hampshire. Thurrock filed a High Court lawsuit against Mr Kavanagh in August last year. Mr Kavanagh, who is now believed to live in Dubai, denies the allegations. The scandal has proved costly for residents of Thurrock. Council tax rates were increased by 8pc last year and services for local residents have also been cut to secure the local authority's finances. While Thurrock contends it was the victim of a scam, a 2023 report by Essex County Council placed blame on the authority for ignoring 'multiple red flags' and downplaying criticism. The report said local politicians inside Thurrock council invested in Rockfire's schemes to 'avoid difficult decisions' without understanding the risks. Council leaders later 'attempted to conceal bad news and avoid public scrutiny' when their failures started coming to light, the report said.
Reuters
03-06-2025
- Business
- Reuters
UK launches probe into alleged solar fraud that brought down English council
LONDON, June 3 (Reuters) - Britain's Serious Fraud Office (SFO) said on Tuesday it had launched an investigation into a company that sold a bond investment scheme linked to solar farms that led to an English council being effectively declared bankrupt in 2022. Between 2016 and 2020, Thurrock Council, a local authority in the eastern England county of Essex, invested millions into solar farms via a bond scheme sold by UK-based Rockfire Investment Finance and other firms operating within the Rockfire Group. Thurrock accumulated huge debts of more than one billion pounds ($1.35 billion) in the process and was effectively declared bankrupt in December 2022 as it ran out of cash, forcing the council to seek central government support, hike local taxes and cut services for residents. Rockfire has since entered administration. The council said in a statement it welcomed the SFO's probe and would ensure the agency had access to all the information it required. "It represents a vital step toward securing justice and ensuring accountability on behalf of our communities," Victoria Holloway, Thurrock Cabinet Member for Place and the Environment, said. The council said that it had recouped more than 650 million pounds of public money from the investments. Last year it launched a lawsuit against Rockfire to recover funds. As part of the probe, the SFO said it would compel financial institutions to provide information for the investigation. ($1 = 0.7404 pounds)
