The Northern Advocate

Tory scandal deepens

Opposition leader: ‘Sleaze, cronyism’ alive and well in Conservati­ve govt

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A lobbying scandal swirling around former British prime minister David Cameron has deepened, with claims that a senior civil servant held down a part-time job with a now-bankrupt financial firm that was awarded lucrative government contracts.

It is the latest in a growing tide of revelation­s about links between government ministers, civil servants and Greensill Capital, a financial services firm that collapsed last month, threatenin­g thousands of jobs at a British steelmaker it helped finance.

Opposition Labour Party leader Keir Starmer said the revelation­s showed the “sleaze and cronyism that’s at the heart of this Conservati­ve government”.

“We need to overhaul this whole broken system,” he said.

Prime Minister Boris Johnson’s Conservati­ve government defeated an opposition effort to force a parliament­ary inquiry into allegation­s of cronyism and improper lobbying, by a vote of 357-262.

But the House of Commons’ influentia­l cross-party Treasury Select Committee announced that it would begin an investigat­ion next week into Greensill’s collapse and the “appropriat­eness” of the UK Treasury’s response to lobbying.

The committee could call Cameron and Treasury chief Rishi Sunak as witnesses.

Opposition parties are calling for tougher rules on contacts between business representa­tives and government officials, saying Britain’s laxly enforced lobbying regulation­s leave the door open to corruption.

The head of the civil service also ordered all government department­s to declare whether any officials had second jobs outside government. Cabinet Secretary Simon Case said there was “acute concern” in government about issues raised by the Greensill affair.

A series of news reports over the last month revealed that Cameron had lobbied senior government officials on behalf of a finance firm founded by Australian banker Lex Greensill, a former adviser to Cameron’s 2010-2016 Conservati­ve-led government.

Greensill Capital was given a lucrative role in “supply chain finance” arrangemen­ts to pay contractor­s on behalf of the government before being reimbursed by the Treasury.

The system was designed to expedite payments to contractor­s, including pharmacies supplying the National Health Service, but critics say the government should just have paid the contractor­s directly.

Cameron worked as a part-time adviser to Greensill starting in 2018, after he left office, and held shares in the company.

On Tuesday it emerged that a senior civil servant, Bill Crothers, began working as a part-time adviser to Greensill’s board in September 2015, two months before he left his job as the government’s chief commercial officer – in charge of government purchasing.

Johnson said he shared the widespread concern about “some of the stuff that we’re reading at the moment”.

British media began digging into Cameron’s work for Greensill after the company’s collapse forced the owner of Liberty Steel, which employs about 5000 people, to seek a government bailout.

Greensill was one of the company’s key financial backers.

After weeks of silence, Cameron released a lengthy statement on Sunday, insisting that his work for the company didn’t break any rules on the activities of former ministers.

 ?? Photo / AP ?? Former British prime minister David Cameron has been the subject of media speculatio­n about his work with finance company Greensill Capital.
Photo / AP Former British prime minister David Cameron has been the subject of media speculatio­n about his work with finance company Greensill Capital.

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