Connect with us

Business

Greensill Cited ‘Political Leaders’ In Gupta Loans, Probe Findings

Published

on

Greensill Cited ‘Political Leaders’ In Gupta Loans, Probe Findings

Article content

(Bloomberg) – Collapsed lender Greensill Capital said it received “political advice” that its loans to steel companies controlled by Sanjeev Gupta and his family were welcome, according to an investigation by the National Audit Office.

Representatives for the London-based company told officials at the UK government-controlled British Business Bank that was why Greensill had loaned so much money to companies from Gupta’s GFG Alliance, according to a published report. on Wednesday.

Commercial

Article content

The British Business Bank had given Greensill the ability to make £ 400 million ($ 551 million) loans with UK government guarantees as part of a pandemic relief program.

A total of 350 million pounds was extended to the GFG Alliance companies, including six loans totaling 300 million pounds in a single day in September 2020, the audit office said, citing a review by British Business Bank.

Greensill collapsed in March after a key partner refused to extend crucial business credit insurance that backed loans it made to multiple borrowers. Greensill and Gupta’s proximity to parts of the UK government came to the fore. There are at least 10 inquiries and investigations into the matter, some of which revolve around lobbying and accessing powerful decision makers in the British establishment.

Commercial

Article content

At the height of the pandemic last year, the UK government and the British Business Bank launched emergency loan programs to support businesses struggling with the consequences of the shutdown.

Greensill was an accredited lender through two of those programs: the Coronavirus Business Interruption Loan Scheme, or CBILS, and the Coronavirus Business Interruption Loan Scheme, or CLBILS. Greensill was CLBILS ‘fifth-largest lender by value and accounted for 8% of the total value of secured loans, according to the audit office’s findings.

Greensill’s accreditation process for the programs garnered what British Business Bank officials called an “unusual” level of interest from the UK Department for Business, Energy and Industrial Strategy, according to the investigation.

Commercial

Article content

Department staff, known as BEIS, asked if Greensill could be allowed to lend more than the maximum £ 50 million to a borrower and asked that the decision be prioritized, according to the audit office report. Greensill was limited to that sum under its guarantee from British Business Bank.

A BEIS spokesman said “there is no suggestion” that ministers or officials have tried to influence the British Business Bank’s decision. All bank decisions are made independently, the person said.

However, the opposition Labor Party said the audit office report raises questions about the government’s involvement. “The level of access Greensill Capital had to ministers is deeply concerning,” said Seema Malhotra, the party’s business spokesperson. “Now the plot thickens with reports that the rules are being bent and applications are accelerating.”

Commercial

Article content

Emails sent to British Business Bank confirmed that Liberty Steel, part of GFG, was pressuring the department to help Greensill provide financing, including suggesting that Greensill be given a custom guarantee to lend to the metals conglomerate, according to the report.

After a review, the British Business Bank legal team concluded that external parties had not influenced Greensill’s accreditation.

But officials became concerned in October that Greensill may have violated the terms of the guarantee by lending too much money to GFG and calling multiple meetings. In early March, days before Greensill filed for bankruptcy, the British Business Bank wrote a “letter of concern” to the lender and suspended its collateral on the loans it made.

Commercial

Article content

Greensill made eight total loans under the program, seven of which went to GFG companies. Grant Thornton, the administrators of Greensill, told British Business Bank in April that he was refuting the allegation that he had violated the terms of the program, according to the report.

The other loan went to Aar Tee Commodities Ltd. The British Business Bank noted that the owner of the company was previously a member of the board of the GFG charitable foundation and of the strategic board of GFG. The bank sent a new letter of concern to Greensill regarding this loan, according to the report.

© 2021 Bloomberg LP

Bloomberg.com

Commercial

In-depth reports on the economics of innovation from The Logic, presented in association with the Financial Post.

    Comments

    Postmedia is committed to maintaining a lively but civilized discussion forum and encourages all readers to share their views on our articles. Comments can take up to an hour to moderate before appearing on the site. We ask that you keep your comments relevant and respectful. We have enabled email notifications – you will now receive an email if you receive a response to your comment, there is an update from a comment thread you follow, or if a user you follow comments. Visit our Community Principles for more information and details on how to adjust your E-mail settings.

    Advertisement
    Advertisement

    Lifestyle

    LifeStyle6 days ago

    How to Prioritize Self Care as a New Parent

    A bundle of joy has joined you in your life and you couldn’t be happier. But, at the same time,...

    LifeStyle6 days ago

    5 Reasons Why You Can’t Stay Asleep

    You have likely heard it most of your life: getting a good night’s sleep is important for your overall health....

    LifeStyle1 week ago

    4 Ways to Spread Joy This Fall

    Traditionally, many people strive to spread as much joy as they can in the weeks leading up to Christmas. But...

    LifeStyle4 weeks ago

    Tips to Boost Your Energy and Ensure Life Longevity with NMN Supplements

    Australia’s median age limit increased by two years recently. Higher NAD+ can improve your metabolism rates and prolong natural aging....

    LifeStyle2 months ago

    5 Tips on Writing APA Research Paper

    When students reach college education, they understand that it won’t all be flowers and sunshine. There are different courses with...

    Support group for businesses to overcome challenges Support group for businesses to overcome challenges
    LifeStyle2 months ago

    Support group for businesses to overcome challenges

    All-day brunch and soup kitchen Cafe Coco suffered as walk-ins dwindled significantly. It’s a tourist-dependent cafe that’s nestled in the...

    S’pore startup Shiok Meats acquires clean red meat company Gaia Foods S’pore startup Shiok Meats acquires clean red meat company Gaia Foods
    LifeStyle2 months ago

    S’pore startup Shiok Meats acquires clean red meat company Gaia Foods

    According to Technology in Asia, Shiok Meats has acquired a stake of more than 90% in Gaia Foods for an...

    Marianna Hewitt’s home proves that neutral decor can be full of personality Marianna Hewitt’s home proves that neutral decor can be full of personality
    LifeStyle2 months ago

    Marianna Hewitt’s home proves that neutral decor can be full of personality

    If anyone understands the importance of maintaining your brand, it is Marianna Hewitt. The trusted influencer and founder of the...

    The 16 best stuffed pepper recipes for every occasion The 16 best stuffed pepper recipes for every occasion
    LifeStyle2 months ago

    The 16 best stuffed pepper recipes for every occasion

    Something you may not know about me is that I absolutely adore a pepper. Raw, cooked, marinated, bathed: each and...

    Top 10 Bedroom Plants That Work As Air Purifying Plants Top 10 Bedroom Plants That Work As Air Purifying Plants
    LifeStyle2 months ago

    Top 10 Bedroom Plants That Work As Air Purifying Plants

    Setting a specific tone in a bedroom can happen in many ways. A beautiful candle, plush rugs, soft bedding, soothing...

    Advertisement

    Sport

    Sports2 months ago

    5 Tips for Setting Up Your PC for Online Gaming

    Due to advances in technology, online gamers can enjoy a gaming experience that was unthinkable even a decade ago. High-resolution...

    Sports2 months ago

    How to Succeed in Poker Tournaments

    Perhaps your first big poker tournament is coming up, or you’ve been gathering skills ready to enter – no matter...

    Sports2 months ago

    Is The Olympics Still Relevant?

    As the Tokyo Olympics has come to a close, competitors must move on from the excitement of experiencing an Olympic...

    Fernández reflects on the game against Dart: ‘Honestly, I can’t think of anything positive’ Fernández reflects on the game against Dart: ‘Honestly, I can’t think of anything positive’
    Sports2 months ago

    Fernández reflects on the game against Dart: ‘Honestly, I can’t think of anything positive’

    var adServerUrl = “”; var $ el = $ (“# video_container-985707”); var permalink = $ el.closest (‘. snet-single-article’). data (‘permalink’);...

    Tammy Abraham to Roma – Mourinho is the perfect coach for the striker Tammy Abraham to Roma – Mourinho is the perfect coach for the striker
    Sports2 months ago

    Tammy Abraham to Roma – Mourinho is the perfect coach for the striker

    It seems that not too long ago, a young English Target Man was a troubling prospect for most Premier League...

    Explanation: Why Barcelona had to let Messi go Explanation: Why Barcelona had to let Messi go
    Sports2 months ago

    Explanation: Why Barcelona had to let Messi go

    Barcelona’s Argentine forward Lionel Messi cries during a press conference at Barcelona’s Camp Nou stadium on August 8, 2021. –...

    Are Arsenal and Spurs left out of the top 6 in dispute as the 2021/22 season approaches? Are Arsenal and Spurs left out of the top 6 in dispute as the 2021/22 season approaches?
    Sports2 months ago

    Are Arsenal and Spurs left out of the top 6 in dispute as the 2021/22 season approaches?

    Manchester United, Manchester City, Liverpool, Chelsea, Spurs and Arsenal are the teams that are widely regarded as the top 6...

    What should team Canada’s men’s hockey roster look like? What should team Canada’s men’s hockey roster look like?
    Sports2 months ago

    What should team Canada’s men’s hockey roster look like?

    We have sent an email with instructions to create a new password. Your current password has not been changed. We...

    Haaland, but staying in Dotmund, can BVB get the title on 21/22? Haaland, but staying in Dotmund, can BVB get the title on 21/22?
    Sports2 months ago

    Haaland, but staying in Dotmund, can BVB get the title on 21/22?

    There are almost twenty days left in the transfer window. The window is in full swing as deals that would...

    Knicks agree to deal with Dwayne Bacon: reports Knicks agree to deal with Dwayne Bacon: reports
    Sports2 months ago

    Knicks agree to deal with Dwayne Bacon: reports

    Dwayne Bacon # 8 of the Orlando Magic shoots as John Collins # 20 of the Atlanta Hawks defends during...

    Advertisement

    Entertainment

    Venice adds Doc ‘Ennio’;  Netflix Confirms Sanjay Leela Bhansali Series – News Block Venice adds Doc ‘Ennio’;  Netflix Confirms Sanjay Leela Bhansali Series – News Block
    Entertainment2 months ago

    Venice adds Doc ‘Ennio’; Netflix Confirms Sanjay Leela Bhansali Series – News Block

    Venice adds Giuseppe Tornatore’s Ennio Morricone film The Venice Film Festival incorporates the Out of Competition screening of Ennio Morricone’s...

    The Jeffrey Epstein Victims Fund has finished paying $ 121 million The Jeffrey Epstein Victims Fund has finished paying $ 121 million
    Entertainment2 months ago

    The Jeffrey Epstein Victims Fund has finished paying $ 121 million

    After awarding more than $ 121 million to about 150 applicants, a compensation program for survivors of Jeffrey Epstein’s sexual...

    Matt Roloff and Karyn Chandler move in together, discuss marriage Matt Roloff and Karyn Chandler move in together, discuss marriage
    Entertainment2 months ago

    Matt Roloff and Karyn Chandler move in together, discuss marriage

    Small people, big world star Matt Roloff and his girlfriend, Karyn Chandlerhave revealed their big summer plans in a new...

    Mike Shouhed wants Reza Farahan to apologize for being a ‘traitor’ Mike Shouhed wants Reza Farahan to apologize for being a ‘traitor’
    Entertainment2 months ago

    Mike Shouhed wants Reza Farahan to apologize for being a ‘traitor’

    Shouhed says his Shahs of Sunset co-star “cuts deep and says things that are hard to forgive.” While a sexting...

    Joey Lawrence and Samantha Cope are engaged Joey Lawrence and Samantha Cope are engaged
    Entertainment2 months ago

    Joey Lawrence and Samantha Cope are engaged

    He put a ring on it! Joey lawrence is engaged to the actress Samantha cope one year after filing for...

    Christine Applegate was diagnosed with multiple sclerosis Christine Applegate was diagnosed with multiple sclerosis
    Entertainment2 months ago

    Christine Applegate was diagnosed with multiple sclerosis

    August 10, 2021 Christine Applegate was diagnosed with multiple sclerosis (MS). Christina Applegate The 49-year-old actress took to Twitter on...

    UK advertisers form tapestry with clients Coel, Fassbender, Foy – News Block UK advertisers form tapestry with clients Coel, Fassbender, Foy – News Block
    Entertainment2 months ago

    UK advertisers form tapestry with clients Coel, Fassbender, Foy – News Block

    EXCLUSIVE: UK advertisers Donna Mills and Emma Jackson, longtime representatives of London-based Premier Communications, have launched the new advertising agency...

    Christina Applegate: actress reveals multiple sclerosis diagnosis Christina Applegate: actress reveals multiple sclerosis diagnosis
    Entertainment2 months ago

    Christina Applegate: actress reveals multiple sclerosis diagnosis

    prime time Emmy-winning actor Christina applegate has revealed a multiple sclerosis condition through a Twitter post late on Monday night....

    Prince Harry and Meghan Markle wanted to move to New Zealand in 2018 Prince Harry and Meghan Markle wanted to move to New Zealand in 2018
    Entertainment2 months ago

    Prince Harry and Meghan Markle wanted to move to New Zealand in 2018

    Prince harry and Meghan Markle according to Queen Elizabeth IIRepresentative to New Zealand, Governor General Patsy Reddy… She said Associated...

    Alarming new UN climate report says humanity has really screwed itself up Alarming new UN climate report says humanity has really screwed itself up
    Entertainment2 months ago

    Alarming new UN climate report says humanity has really screwed itself up

    The last evaluation of climate science is a “code red for humanity,” the United Nations chief said on Monday, while...

    Advertisement

    Tech

    Tech4 days ago

    How to Provide Cybersecurity for Firefox

    Mozilla Firefox is one of the first browsers that come to mind when thinking about the best privacy-oriented browsers available...

    Tech3 weeks ago

    6 Important Questions to Ask Your Internet Provider

    Choosing the best internet provider can be challenging, especially when you don’t know what questions to ask. You want to...

    Tech4 weeks ago

    How Serious is Plagiarism in College?

    Studying in college often demands writing essays and course papers. You may study technical subjects and do not have many...

    Tech1 month ago

    Three Possible Ways of How You Can Transfer Contacts from Outlook to iPhone

    MS Outlook plays an important role in putting daily life in order, especially with regard to email management. If you...

    Tech1 month ago

    Importance of Email Validation

    According to recent stats, 30% of users change their email every year. Therefore, if your mailing list is more than...

    Tech1 month ago

    Before Doing Virtual Staging, Here’s What You Should Know

    The majority of people today go online to look for homes. When a potential buyer spots a house online that...

    Tech1 month ago

    What Technologies are Online Casinos Using?

    Online casinos have become an ideal choice for a lot of players, especially because they let players take their games...

    Tech2 months ago

    Grow Your Brand With These 5 Social Media Tips

    Whether you’re operating a new business or working to grow your brand, social media is an excellent place to start....

    Tech2 months ago

    Is Mining Ethereum Still Profitable in 2021?

    Globally, there have been lots of innovations and modernization in different aspects of life. This fact has contributed to the...

    Tech2 months ago

    Popularity Of the Blockchain Technology: How Familiar Are You with It?

    Cryptocurrencies are a form of digital currency that stands out because it is decentralized. Cryptocurrency also stands out because it...

    Advertisement
    Advertisement