UK Lawmakers to Probe Greensill Failure
Reuters reported that a British parliamentary committee will launch an inquiry into the failure of Greensill Capital and how the finance ministry responded to lobbying efforts which were made on behalf of the firm by former British Prime Minister Mr David Cameron. The committee said "The Committee will focus on the regulatory lessons from the failure of Greensill Capital and the appropriateness of HM Treasury’s response to lobbying in relation to Greensill Capital.”
According to a Financial Times report, UK’s Chancellor Mr Rishi Sunak and former prime minister Mr David Cameron are set be called to give evidence to parliamentary inquiries into the Greensill Capital scandal.
UK’s Cabinet Office announced on April 12 that a review is to be launched into the development and use of government-linked lending and supply chain finance programmes within government and especially the role of Mr Lex Greensill and Greensill Capital. UK government’s review follows accusations of cronyism, after it emerged former Prime Minister Mr David Cameron, an advisor at Greensill since 2018, had lobbied current government officials for wider access to Covid-19 support schemes. The review will be undertaken by Mr Nigel Boardman, a former corporate lawyer whose role as non-executive board member for the government’s Department for Business, Energy and Industrial Strategy will be paused during the probe. Mr Boardman is tasked with completing the review by the end of June this year.
Greensill was involved in multiple public sector financing schemes, including an early payment facility for health workers and a working capital programme for pharmacies. It had also been approved as an accredited lender under the Coronavirus Large Business Interruption Loan Scheme, an emergency scheme that let Greensill provide government-backed finance of up to GBP 50 million to larger firms facing working capital shortages.
Greensill also formed a partnership with thousands of pharmacies across England in July last year, using artificial intelligence to predict the value of prescriptions filled and provide short-term loans to cover the upfront cost.