MPs to decide today if David Cameron’s lobbying for Greensill bailout will be probed
The influential MPs on the Treasury Select Committee are expected to meet today to discuss whether to launch a formal inquiry into the collapse of supply chain financier Greensill.
It comes as calls grow for greater scrutiny over the affair following reports that David Cameron lobbied on behalf of the firm to get access to emergency coronavirus cash for the fiannce company.
Former Prime Minister Cameron sent text messages to Rishi Sunak in a bid to secure emergency funding for failed finance firm Greensill Capital.
Cameron, who was an adviser to Greensill and had millions in potential stock options in the firm, texted the chancellor to try secure funding under the government’s Covid Corporate Financing Facility (CCFF).
The emergency scheme sees the government buy millions of pounds worth of bonds from large investment grade firms to help them keep afloat.
The Sunday Times reports that Sunak left most of the former Prime Minister’s messages unanswered.
Lex Greensill, the firm’s founder, had already had unsuccessful talks with the Treasury about securing funding through the emergency Covid scheme.
The Treasury found that the firm did not qualify for the scheme.
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Cameron then got involved by reaching out to Sunak directly, however the chancellor reportedly directed him to senior Treasury officials who once again rejected the bid.
However, Greensill did benefit from £400m of loans from the government’s Coronavirus Business Interruption Loan Scheme (CBILS), despite the official limit being just £50m.
The firm took out eight loans of £50m, the Sunday Times revealed today.
Shadow chancellor Anneliese Dodds said: “The suggestion that David Cameron was also contacting the chancellor directly to further Greensill’s commercial interests raises even bigger concerns.
“This is public money, and the processes involved in decision-making should be fully transparent and beyond reproach. We need a full and thorough investigation into what’s happened here.”
On Monday, Greensill appointed Grant Thornton as its administrators, warning it is in “severe financial distress”, but Greensill’s issues have been mounting for some time.
Last year the German regulator Bafin started investigating Greensill’s exposure to steel magnate Sanjeev Gupta after Greensill was hit by a number of its clients defaulting on their debts, including NMC Health.