Checks on Greensill were ‘woefully inadequate’, MPS find

Up to £335 million of taxpayers' money could be at risk due to failures by the British Business Bank to properly scrutinise bust lender Greensill Capital, according to a new report. public accounts committee of MPS found that the bank, whichoversawthebillionslent to businesses during the pandemic in loans backed by the government, failed to conduct sufficient due diligence.

MPS also questioned why the bank was "insufficiently curious" about reports that Greensill was close to collapse and said checks on the lender were "woefully inadequate".

The scandal surrounding Greensill has spread throughout Westminster with allegations the lender was given prefthe erential treatment. It emerged former prime minister David Cameron used his position as an adviser to make dozens of calls to Chancellor Rishi Sunak andtreasuryofficialstosecure lending during the pandemic prior to Greensill's collapse, leading to several investigations.

The committee looked at the roleofthebritishbusinessbank and said: "Up to £335m of taxpayermoneyisatincreasedrisk following the British Business Bank's failure to conduct sufficient due diligence into Greensill Capital ... when it applied to be a lender under the bank's business support schemes."

MPS said there was a "lack of information-sharing across government"whichhampered decision-makinginresponseto the pandemic, allowing Greensill access to taxpayer-funded schemes. They also suggested thatgreensillmayhavebroken lending rules under the Coronavirus Business Interruption Loan Scheme (CBILS) by loaning £350m to the Gupta Family Group (GFG) Alliance.

It was revealed seven loans of £50m each were handed to different entities of GFG when the rules stated companies should only be entitled to a maximum of £50m per organisation.

The scathing report said the government's failure effectively to share intelligence on companies approaching it for support, including Greensill, put "taxpayer money at risk".

It also stated the government and British Business Bank struck the wrong balance between making decisions quickly and protecting taxpayerinterestswhenlaunchingthe various lending schemes.