The Serious Fraud Office (SFO) has launched an investigation into Rockfire Investment Finance, a company connected to the financial collapse of Thurrock Council following its failed investments in solar farms. Between 2016 and 2020, Thurrock Council invested over £100 million in a bond scheme promoted by Rockfire and its associated companies, which promised returns of between 3% and 6%. However, Rockfire has since gone into liquidation, leaving the council with significant losses that contributed to its effective bankruptcy in 2022. Thurrock Council’s debts now exceed £1 billion, marking one of the most severe financial crises for a local authority in recent UK history.
Central to the investigation are allegations that Liam Kavanagh, a Dubai-based businessman and head of Rockfire Capital, misappropriated £150 millions of public funds for personal luxuries. The council claims that Kavanagh used the money to purchase a £13.7 million yacht, a £9.1 million private jet, and a property in Mallorca. Kavanagh denies the accusations and is contesting the jurisdiction of UK courts over the matter. Despite this, Thurrock Council has welcomed the SFO’s involvement and continues to pursue civil claims to recover taxpayer money. To date, the council has successfully reclaimed over £650 million from prior investments, but a significant sum remains outstanding.
The SFO has issued a series of legal notices to financial institutions, compelling them to provide information related to the alleged fraud against Thurrock Council. The investigation focuses on the bonds connected to solar farms, which were marketed by Rockfire as secure, profitable investments in renewable energy. The subsequent collapse of the company and liquidation have raised serious questions about the legitimacy of these investments and the management of public funds.
This case underscores the critical need for transparency and accountability when public sector bodies invest taxpayer money. It also highlights the vulnerabilities in financial oversight that can lead to significant losses and damage public trust. As the investigation unfolds, it serves as a stark reminder of the importance of rigorous due diligence and robust governance to prevent similar financial scandals in the future.
The SFO’s probe into the Thurrock Council solar farm investments represents an important step toward justice and financial recovery. It also aims to send a clear message that misuse of public funds will be met with thorough investigation and legal action, reinforcing the principles of integrity and responsibility in public finance.
