Tycoon offices raided in fraud probe

FRAUD officers have raided premises linked to a steel tycoon whose deal with the Scottish Government could cost taxpayers £600million.

Serious Fraud Office investigators visited locations of Sanjeev Gupta’s firm Liberty Steel in Scotland, england and Wales to seize documents and interview staff.

It comes almost a year after the SFO launched an investigation into suspected fraud and money laundering by parent firm GFG alliance.

The SFO confirmed that teams from the organisation had visited company offices yesterday morning to request documents including company balance sheets, annual reports and correspondence related to the investigation.

It comes just days after GFG’s offices in Paris and an aluminium smelter in dunkirk were raided by French police as part of an investigation into money laundering and misuse of corporate assets. The latest raid is a further embarrassment for the Scottish Government, which has been accused of risking nearly £600million of taxpayers’ cash in a 2016 deal to help Gupta purchase the Lochaber smelter in the West Highlands.

Gupta’s intervention helped secure 160 jobs at the site, which was facing closure when put up for sale by Rio Tinto.

The deal with the Scottish Government was designed to help raise funds for the acquisition. But Gupta’s empire is now under investigation.

Scottish Liberal democrat economy spokesperson Willie Rennie said: ‘The Scottish Government and their business partners have found themselves mired in murky business.

‘It’s time for ministers to stop sweeping things under the carpet and see what can be learned from the Serious Fraud Office.’

Scottish Labour finance spokesman daniel Johnson added: ‘We need ministers to urgently deliver a statement to the parliament to inform the chamber of any further financial damage that the government’s deal with Liberty Steel may cause to the public purse.’

A spokesman for GFG alliance declined to comment.