Cameron cleared by lobbying watchdog
DAVID Cameron has been cleared of breaking lobbying rules after he was accused of trying to secure state loans for a company he worked for.
The investigation by watchdogs concluded that the former prime minister had not breached guidelines when he intervened on behalf of Greensill Capital.
They said he was an employee of the failed company and so was not required to declare himself on the register of consultant lobbyists.
Greensill was the main financial backer for Liberty Steel, which owns 12 plants in the UK and employs 5,000 workers but now faces an uncertain future. Yesterday it asked the Government for a £170million bailout as it teetered on the brink of collapse.
Mr Cameron is said to have sent a number of texts to Chancellor rishi Sunak’s private phone asking for support for Greensill through the Covid Corporate Financing Facility.
he is also alleged to have approached the Bank of england about the firm, which collapsed into administration earlier this month. his activities were investigated by harry rich, the registrar of Consultant Lobbyists – a post set up in legislation passed by Mr Cameron’s government in 2014.
‘Based on detailed information and assurances provided, Mr Cameron’s activities do not fall within the criteria that require registration on the register of Consultant Lobbyists,’ the watchdog’s decision said.
The Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Act 2014 makes it an offence for someone who is not a registered lobbyist to directly lobby ministers or senior civil servants.
But people lobbying on behalf of their own organisation are not required to register.
The watchdog said it had received ‘comprehensive assurances’ from Mr Cameron that any contact he had with any minister or Whitehall permanent secretary was made as an employee of Greensill.
The Sunday Times reported that the former prime minister sent a number of texts to Mr Sunak asking for help for Greensill, while The Times subsequently reported that he had directly lobbied the Bank of england.
GFG, a network of businesses connected to industrial magnate Sanjeev Gupta, and owner of Liberty Steel, was plunged into crisis this month when Greensill tumbled into administration. Mr Gupta was a good friend of Greensill’s founder, Australian banker Lex Greensill, and borrowed billions from the lender to pay GFG’s suppliers.
Without that source of income, Mr Gupta was forced to take drastic measures. he suspended the payment of some bills, asked customers to pay up front, and told managers across his business to cut the fat where they could.
The British-Indian tycoon wrote to ministers this week asking for up to £170million to keep the business ticking over, Sky News reported last night. Without this injection of money, the company could crumble.
Business Secretary Kwasi Kwarteng has met Liberty executives several times in recent weeks, but it is understood that Government has concerns about the lack of transparency within Mr Gupta’s empire.
The ownership structures of all the businesses within GFG are unclear, as are their debt piles.
Labour’s business spokesman, Lucy Powell, said: ‘This is a deeply concerning situation, and a very worrying time for Liberty Steel workers.
‘It’s vital that the Government engages proactively with Liberty and doesn’t wash their hands of the situation.’
Firms such as Liberty borrowed from Greensill to pay their suppliers more quickly, and then reimbursed the lender at a later date. While other major companies such as Vodafone also used Greensill, they were less reliant on its cash than GFG.
A spokesman for the Business Department said: ‘The Government is closely monitoring developments around Liberty Steel and continues to engage closely with the company, the broader UK steel industry and trade unions.
‘The Government has supported the steel sector extensively, including providing over £500million in recent years to help with the costs of energy. our unprecedented package of Covid support is still available to the sector to protect jobs.’
‘Deeply concerning situation’