QUESTIONS ON THE TORY DONOR NOW ADVISING ON LOANS
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MPS are demanding to know why a Tory donor who runs a firm investing in troubled companies has been hired as a Government adviser on how coronavirus business loans should be dished out.
The move has led to accusations that Chancellor Rishi Sunak’s appointment of ex-boss Richard Sharp could cause a potential “conflict of interest”.
The former City banker is chairman at Roundshield, a firm that makes money helping struggling firms get access to cash.
One financial expert told us: “The appointment will give him a privileged insight into the market where his business operates – as well as knowledge of government thinking competitors would love.
“I believe it is a conflict of interest.” Ex-shadow chancellor John McDonnell is among MPs infuriated by the move. He said: “It is an extraordinary ministerial decision and needs explaining how on earth it cannot represent a serious conflict of interest.”
Multi-millionaire Mr Sharp, 64, has donated £400,000 to the Tory Party in the past. He is on the board of right wing think tank the Centre for Policy Studies. He also owns 7% in a drugs company linked to the testing of potential coronavirus vaccines.
He was Mr Sunak’s boss and mentor when the Chancellor worked as a banker at Goldman Sachs. His new unpaid role will involve sorting out the chaotic Coronavirus Business Interruption Loans Scheme (CBILS) which has so far dished out cash to just 5,000 firms forced to furlough staff or stop trading, despite 300,000 inquiries. It’s not the first time Mr Sharp – once an advisor to Boris Johnson as London mayor – has been caught up in controversy. In
2014, he was appointed to the Bank of England’s powerful Financial Policy Committee (FPC) – and then joined Roundshield, fuelling questions over a conflict of interest.
He also attended a Tory fundraising party weeks after assuring parliament he would not let past political connections compromise his independence.
Mr Sharp has taken temporary leave from RoundShield while in his new role. A spokesman said the firm would not be a lender to the CBILS.
The Treasury did not comment but a source said: “A conflict of interest policy is being followed.”