Serious Fraud Office launches investigation into Thurrock fraud claims

The Serious Fraud Office (SFO) has launched an investigation into Rockfire Investment Finance and its £650m solar farm deals with Thurrock council.

The SFO has requested information from a number of financial institutions as part of its probe into multimillion-pound fraud allegedly committed against the local authority in Essex.

The move follows reporting by the Bureau of Investigative Journalism (TBIJ), which began in 2019, into a series of secretive investments made by Thurrock into bonds issued by companies owned by businessman Liam Kavanagh between 2016 and 2020.

TBIJ revealed how Kavanagh pocketed as much as £130m of public funds after inflating the value of solar farms to convince Thurrock to increase its investments. He then used the money to buy a mansion, private jet, yacht and a fleet of supercars. He has always denied any wrongdoing.

The collapse of the investments effectively bankrupted the council, led to the resignation of its chief executive, finance director and leader, and saw it placed under the control of government-appointed commissioners.

Thurrock sued Kavanagh and his company Rockfire Capital for fraud last year. In April, as part of that claim, the council accused Kavanagh of giving forged evidence to the high court to cover his tracks after paying himself £5m during one of the solar deals, an allegation he also denies.

The SFO investigation, which is being assisted by Essex police, is separate to Thurrock’s fraud claim.

Nick Ephgrave, Director of the Serious Fraud Office, said: “Today’s action is a significant step in our investigation concerning this suspected criminality.”