Thurrock Council has been accused of entering into secretive contracts worth over half a billion pounds.
The local authority is believed to have invested £665m of taxpayers’ money in local businessman Liam Kavanagh’s ventures through a series of deals over the course of four years, according to an investigation by the Bureau of Investigative Journalism.
The money, which the council allegedly obtained by borrowing from over 150 other local authorities, was used to buy dozens of solar farms more than a hundred miles away from Thurrock.
The council also injected a £138m ‘Top Up Investment Decision’ (TID) into Mr Kavanagh’s companies four years ago. According to the Bureau of Investigative Journalism, the local authority is unable to account for what was done with this lump sum.
The group the Good Law Project, along with Cllr John Kent, leader of Thurrock Council’s Labour group, is asking the council to explain its decision process and disclose relevant documents in relation to its investments in Mr Kavanagh’s company.
Cllr John Kent said: ‘Senior councillors and council officers should be accountable for the decisions they make. That relies on a level of transparency that just doesn’t exist at Thurrock Council.
‘Over the years that we have been raising concerns over the council’s Borrowing and Investment strategy, we have been stonewalled, ignored, falsely reassured, fobbed off and misled. We, including local residents, deserve to know the truth.’
Jo Maugham, director of Good Law Project, said: ‘Who made the decision to invest? What was the basis for the decision, and what due diligence – if any – was undertaken? The council must come clean over all investments injected into Rockfire Capital and associated companies. It is very worrying that it seems unable to account for such a vast sum of taxpayers’ money.’
A spokesperson for the council said: 'As a result of Thurrock Council’s ongoing due diligence programme, concerns regarding the valuation of this solar site investment were identified by the Council in 2021. Immediately, swift and robust action was taken.
'Thurrock Council and its external financial and legal experts have established a comprehensive resolution plan to safeguard the Council’s financial position.
'Thurrock Council has taken action on this matter to minimise risk and support the continued security of public funds.'
