Latest news with #Thurrock
Telegraph
7 days ago
- 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.
The Independent
7 days ago
- Business
- The Independent
Investigation launched into suspected fraud against debt-ridden local council
The Serious Fraud Office has launched an investigation into failed investments in solar farms that left a local council £1.5 billion in debt. Investigators have issued so-called section 2 notices against banks and other financial institutions to demand documentation relevant to the case. Investments were made by Thurrock Council in Essex through Rockfire Investment Finance Plc and other companies operating within the Rockfire Group between 2016 and 2020. The local authority was offered returns of 3% to 6% on its multi-million pound investment. Rockfire went into liquidation, and Thurrock Council was effectively declared bankrupt in December 2022, with debts of £1.5 billion. It has since recouped £650 million of public money. Director of the Serious Fraud Office, Nick Ephgrave 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.' Victoria Holloway, Thurrock Council cabinet member for Place and the Environment, 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. 'We therefore strongly welcome today's announcement from the Serious Fraud Office (SFO). 'It represents a vital step toward securing justice and ensuring accountability on behalf of our communities. '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.'
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)
The Guardian
03-06-2025
- Business
- The Guardian
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. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion 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.
BBC News
03-06-2025
- Business
- BBC News
Serious Fraud Office investigate alleged council fraud
A company into which a struggling council invested hundreds of millions of pounds is being investigated by the Serious Fraud Office (SFO). Thurrock Council in Essex was effectively declared bankrupt in 2022 - and had a debt of £ 2016 and 2020, the 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, the SFO said. Nick Ephgrave, director of the SFO, said: "Today's action is a significant step in our investigation concerning this suspected criminality." The Rockfire Group will now be compelled by the SFO to provide evidence. 'Justice and accountability' Thurrock Council has welcomed the investigation. Labour cabinet member Victoria Holloway said the SFO investigation "represents a vital step toward securing justice and ensuring accountability on behalf of our communities".Thurrock has had to raise council tax above the rate of many local authorities in recent and impose spending cuts. Whilst £650m has been recouped from the investments the council made, millions have been Group has since entered administration. Separate High Court civil proceedings brought by Thurrock Council are under way against Rockfire Investment Finance Plc and its former a statement the SFO said: "Rockfire offered multiple investment opportunities in renewable energy bonds, offering a return on investment between 3-6% as well as the return of the initial bond purchase cost."It confirmed 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 Police and Thurrock Council are helping in the early stages of this investigation. Follow Essex news on BBC Sounds, Facebook, Instagram and X.
