Thurrock Council, a council in England, has taken a bold step by threatening legal action against 23 councils, including four Welsh councils. This move is part of their efforts to recoup losses incurred from investments in solar farms that resulted in the council declaring bankruptcy. The legal claim is directed towards the Association for Public Service Excellence (APSE), a non-profit organisation that provided valuations for these investments. Among the Welsh councils facing potential legal action are Cardiff Council, Swansea Council, Vale of Glamorgan Council, and Flintshire County Council.
Cardiff Council has dismissed Thurrock Council’s claims as “spurious”, while Vale of Glamorgan Council has declared that it will vigorously defend any claims made against it. Similarly, Swansea Council has affirmed its stance to defend against any legal actions. APSE, on the other hand, has expressed disappointment with Thurrock Council’s decision to pursue legal action and has refuted the contents of the council’s recent press release on the dispute. Thurrock Council, under the leadership of Cllr John Kent, emphasized its dedication to recovering public funds lost through investments with Rockfire Investments, owned by Liam Kavanagh.
The saga began when Thurrock Council invested over £600m in solar farm projects between 2017 and 2020, resulting in financial turmoil that led to the council’s declaration of bankruptcy in December 2022. Allegations have surfaced that a portion of these investment funds contributed to Mr Kavanagh’s extravagant lifestyle. Cllr Kent expressed concerns over APSE’s advisory practices, suggesting that the organisation failed to provide adequate safeguards to limit financial exposure for its member councils. The council insists on holding APSE accountable for the detrimental advice provided and seeks to rectify the situation for the benefit of Thurrock’s residents.
Thurrock Council’s claim against a subset of APSE member councils aims to streamline the legal process and reduce costs, although the outcome could potentially affect all 250 APSE member councils. This move has been met with resistance from APSE, which is currently engaged in discussions to resolve the complex dispute. APSE criticized Thurrock Council for prematurely issuing a press release that could jeopardize ongoing negotiations. Despite the discord, Thurrock Council remains open to finding a constructive resolution, including the possibility of entering a standstill agreement before the looming legal claim deadline on November 19.
As the controversy unfolds, the dispute between Thurrock Council and the Welsh councils embroiled in the legal ramifications continues to escalate. The repercussions of the council’s investments in solar farms have had far-reaching consequences, prompting a legal battle that could have implications for local authorities across the UK. With multiple parties involved in the high-stakes conflict, the future resolution remains uncertain, as each entity stands its ground in the pursuit of justice and financial restitution.