The U.K.'s audit and accountancy regulator has opened an investigation into an accountant following solar farm investments made by a now bankrupt local authority.
The Financial Reporting Council is looking into the conduct of one of its members in relation to the activities of Thurrock Council, the watchdog said Wednesday. Thurrock Council, in Essex to the east of London, put hundreds of millions of pounds into solar energy only to later seek a government bailout when the investments soured.
Britain is facing a crisis of local government after a string of councils effectively declared themselves bankrupt, including Birmingham City Council — the largest local authority in Europe. Other councils to run into financial trouble include Woking, Nottingham and Croydon.
Some councils borrowed money to invest in new projects. Thurrock in particular helped to finance 53 solar farms across the U.K.
However, the solar farm portfolio, known as Toucan Energy, collapsed and was put up for sale. Thurrock declared bankruptcy last year, and a government
The FRC, which declined to name the member under investigation, launches a probe if a case raises important issues affecting the public interest in the U.K., or if there are reasonable grounds to suspect there may have been misconduct. It is examining the accountant's conduct in the years ending March 31, 2018 and March 31, 2022.
Thurrock Council said in a statement that it would continue to provide information to the FRC and support the investigation. "As a council, we recognize that things went very wrong," said council leader Andrew Jefferies in the statement. "Our focus now continues to be on taking the necessary action to put that right."
