The whole sordid and disastrous affair started in late 2015 and into 2016 when Liam Kavanagh was brought into contact with Thurrock Council by another authority. Up until that time Thurrock’s borrowing had been low key and responsible. In 2014 the council made a first investment in the Churches, Charities and Local Authorities (CCLA) property fund of £20m. This proved a profitable and safe move.
In 2015, two further investments were made in this fund bringing the overall total to £50m and Head of Finance, Sean Clark reported on its success to council. In effect, that was the pivotal moment when the council began a process to take more and more risk. Clark, it appears, was mesmerised by the possibility of making cash quickly, with little apparent risk and around that time he was introduced to Kavanagh.
Significantly, the administration of the council changed hands at the May 2016 election, with Labour losing power and the Conservatives took control. May also saw the first investments, sanctioned by Clark in the renewable energy sector. And from that point onwards, a web of secrecy began to be spun around the council’s finances.
It wasn’t until September, more than five months after the Tories took over responsibility for scrutiny and approval, that it was finally reported that the first solar investment had been made. Clark told councillors he had been unable to report it earlier because of ‘commercial sensitivities’ but he was able to report it had been successful and had brought significant returns to council coffers. That was enough to bait the trap for financial catastrophe as he was given the green light to plough ahead and invest.
Clark did so in huge amounts, much of it involving Kavanagh and his companies, though other, risky investments were also made. Reports to council were minimal and dressed up to show the success, not the risk. Gradually though, as the money borrowed spiralled by hundreds of millions, suspicions began to arise.
Questions were asked but the Conservatives were riding on what they believed was a wave of financial success and they battened down the hatches against criticism and ploughed ahead with the disastrous policy – unaware then that they were being lied to and misled by officers.
The whip hand of Clark, lauded as the council’s financial guru, and the secretive obsessions of Chief Executive Lyn Carpenter meant that questioning was ignored and fears treated with contempt. It has subsequently emerged that internal auditing did not take place because junior officers were afraid to challenge their bosses.
In January 2020 Thurrock Nub News exclusively broke the story that Thurrock’s borrowing had surpassed £1 billion. It sparked a catalogue of follow up stories including several in national newspapers and the publishing of the Bureau of Investigative Journalism’s own probe into the council’s activities. The furore was such that, after the Financial Times reported on the council’s situation, Clark went into full denial mode. The spending continued recklessly – even after the alarm was finally raised. In November 2020 another £125 million was borrowed to invest and the council’s debt began to approach the £1.5bn mark!
In September 2022 the council’s financial strategy finally hit the rails when it had to admit to a complete and catastrophic failure of its financial wheeler dealing.
Leader Cllr Rob Gledhill quit and in the days that followed Clark and Carpenter were put on garden leave – never to return to their full time posts. Clark is reported to have co-operated with the investigation during his notice period, while Carpenter fought a legal battle to extenuate herself from blame. A subsequent government ‘best value investigation’ into the council utterly damned her management of the authority.
The shamelessness of the council and its administration appeared to have few bounds. An extended investigation by the commissioners brought in to run Thurrock Council has highlighted major issues. A secret report has done the rounds of a select few who say it is damning in the extreme and talks of the possibility of theft and criminal activity.
A council brought down by the machinations of one man and the greed of senior officers … 
