Inquiry into ex-officer at £469m black hole council

A former Thurrock Council officer is being investigated over their conduct that led to the authority becoming effectively bankrupt

An investigation has been launched into the conduct of a former Thurrock Council staff member after the authority admitted to a £469m budget black hole.

The Financial Reporting Council (FRC) says its probe relates to “Thurrock Council’s operations and investment activities for the financial years ended 31 March 2018 to 31 March 2022”.

The BBC understands the individual being investigated is the former finance director Sean Clark. Mr Clark has been contacted for a response.

The FRC confirmed it was the first time it had investigated a council officer.

'unprecedented' risk warning

The individual has not been named officially but only one person is being investigated at Thurrock Council.

The FRC investigation could lead to a tribunal and disciplinary action.

Mr Clark was warned about “unprecedented” risks being taken with public money during his time as Thurrock Council’s finance officer.

Hundreds of millions of pounds were borrowed to invest largely in renewable energy. Losses of £275m have been recorded on Thurrock’s investments.

Work is underway to recoup other investments and reduce a £1.5bn debt.

Thurrock Council has had to make cuts to services and increase council tax by 10% this year.

Thurrock Council Leader Andrew Jefferies welcomed the investigation

Andrew Jefferies, leader of the council, said: “The announcement that the FRC will investigate the issues we’ve raised about the failings of the past is strongly welcomed by all of us working together to create a better future for the council and the borough”.

The government intervened in Thurrock Council's operations in September 2022.

Essex County Council was appointed commissioner to oversee the unitary authority's finances.

The government has provided a financial support package and has since appointed Dr David Smith as the new chief executive and Managing Director Commissioner.

Dr Smith said: “The FRC investigation is an important step in understanding the issues the council faced as we work at pace on delivering improvements that will make a real difference for the people we serve.”