STORY
The Serious Fraud Office (SFO) has today opened a formal investigation into an alleged multi-million-pound fraud against Thurrock Council, marking a significant escalation in probing the collapse of solar farm investments that nearly bankrupted the Essex authority in late 2022. Under Section 2 of the Criminal Justice Act 1987, the SFO has issued notices compelling banks and other financial institutions to hand over documents and information related to the scheme, which was orchestrated by Rockfire Investment Finance Plc and associated companies within the Rockfire Group.
Between 2016 and 2020, Thurrock Council invested millions of pounds into bonds tied to solar farms, enticed by promised returns of between 3–6 per cent alongside the return of the initial investment. Rockfire marketed multiple tranches of these bonds to local authorities and other investors as a “green” way to secure modest yields. However, the group subsequently fell into administration, triggering alarm when Thurrock was effectively declared bankrupt in December 2022. The financial collapse forced a series of council tax hikes and cuts to essential local services, leaving residents to shoulder the fallout from what many now see as reckless decision-making.
Nick Ephgrave QPM, Director of the SFO, emphasised the gravity of the situation:
“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 enquiry.”
Ephgrave’s remarks underline the collaborative approach between the SFO and local law-enforcement agencies. By compelling information from banks and other intermediaries, investigators hope to unearth the detailed paper trail that led to the council’s ill-fated foray into renewable-energy bonds.
Although details of the alleged fraud remain tightly under wraps, several troubling facts have already emerged. Rockfire’s administration was triggered in 2023 after a shortfall in bond returns left the company unable to meet its obligations. Several councils across England, including Thurrock, were reported among its major investors. Critics now question whether due diligence was properly carried out when the bonds were initially underwritten, especially given the overly optimistic yield forecasts and the complex financial structures underpinning the solar farm projects.
Thurrock Council’s financial predicament has been high-profile in local government circles since 2022, when auditors first flagged significant pension and debt liabilities. The losses incurred through the Rockfire bonds dealt a final blow, forcing the authority to appeal to central government for assistance and prompting urgent reviews of its investment policies. Council leaders concede that the rapid expansion into renewable-energy bonds was intended to secure steady revenue but instead backfired, plunging the borough into severe fiscal distress.
The SFO’s investigation remains at an early stage. No arrests have been made, and it is unclear whether charges will follow. By invoking Section 2 powers, the agency can demand any relevant documents, including confidential bank records, and require individuals to answer questions under oath. That legal leverage often proves pivotal in unravelling suspected frauds of this scale. Local residents and council staff have welcomed the probe, hoping it will shed light on how decision-makers sanctioned such large outlays with seemingly inadequate safeguards. One unnamed council officer commented: “There was a sense of optimism around renewable investments, but people didn’t expect it to end up like this. We need clarity on who was advising us and whether warnings were ignored.”