Between 2016 and 2020, Thurrock Council, the local government authority in the UK, invested millions of pounds in solar farm projects through a bond scheme sold by Rockfire Investment Finance and affiliated companies. The bonds promised returns of 3 to 6% above the principal, but the company later entered liquidation.

Court filings allege that Rockfire’s owner, Dubai-based businessman Liam Kavanagh, diverted at least £150 million of council funds for personal luxury purchases, including a yacht, a private jet, and a property in Mallorca. Liam Kavanagh denies any wrongdoing. These losses allegedly contributed to Thurrock Council running up debts exceeding £1 billion, leading to its effective bankruptcy in 2022.

The UK’s Serious Fraud Office opened a formal investigation in 2025, issuing notices to financial institutions to gather information on the alleged fraud. The council has also pursued civil claims to recover lost public funds, with over £650 million already recouped from historic investments.

Corruption in action

If the investigation confirms the allegations, then the case would be a memorable example of misappropriation of public funds through complex investment schemes. It alleges that council investments were used for private gain by a corporate owner, and that weak oversight and due diligence by local government officials allowed systemic misuse of public money to continue unchecked. Together, these factors highlight vulnerabilities in public investment mechanisms that can enable financial crime when governance controls are inadequate.

Climate and governance impacts

The scandal has undermined public trust in renewable energy initiatives led by the local government, raising questions about the integrity of climate-related investment decisions. It has also caused delays and failures in the deployment of renewable energy projects, indirectly affecting local climate action targets. Overall, the case highlights the risks of mismanagement of funds in emerging “green” investment schemes when public oversight and accountability are insufficient.