A Cheshire MP has accused Greensill Capital of “playing quick and easy” with employees’ jobs when the government confirmed an investigation into the saga.
Downing Street announced today (Monday) that it is reviewing former Prime Minister David Cameron’s role in lobbying on behalf of the financial firm that collapsed in March.
It came after a number of texts were published in which Mr. Cameron announced to Chancellor Rishi Sunak and other finance ministers.
Weaver Vale MP Mike Amesbury slammed the finance firm and former prime minister after 305 jobs were cut at Greensill’s Daresbury Park base in his constituency.
He accused Greensill of trying to expand its Cheshire business despite being denied a government bailout.
He said: “Greensill has pushed this expansion forward, throwing caution to the wind, even after the emergency funding request was denied.
“Was it because you had someone on the board who happened to be the former prime minister? Cameron had a financial interest and said he had stock options worth up to 1% of the company – worth $ 70 million (£ 51 million) if a planned IPO had happened.
“By the time Cameron was # 10, he had named Chester-based founder Lex Greensill as a senior advisor. Greensill used this access to promote a government-sponsored loan program that he had developed.
“Given the patronage Greensill has given, you can see where his sense of entitlement came from.
“But the businessman was quick and easy to play with the jobs of his employees and we now know that this story didn’t end happily.”
Mr Cameron, who began working as a consultant for Greensill in 2018, attempted to involve the company in a government-sponsored emergency loan program for companies affected by the Covid pandemic.
The government rejected his plans to include Greensill in the Covid Corporate Financing Facility.
Downing Street confirmed today that there will be an independent review of Greensill Capital led by legal expert Nigel Boardman.
Speaking to a briefing in Westminster, the Prime Minister’s official spokesman said: “The Cabinet Office is commissioning an independent review on behalf of the Prime Minister to assess the development and use of supply chain finance and related activities in the government, and the role Greensill played in to determine.
Weaver Vale MP Mike Amesbury.
“As you know, there is considerable interest in this matter, so the Prime Minister has requested the review to ensure that the government is completely transparent about such activities and that the public can see for themselves that good value for taxpayers money is assured.
“This independent review will also look at how contracts were secured and how company officials worked with the government.”
Mr. Amesbury welcomed the review, adding: “There is no doubt that Greensill’s ties to Cameron have granted privileged access to the heart of government both in number 10 and after his departure from office.
“The case raises many serious questions about Tory cronyism and what looks like an abuse of power even when no laws have been broken.”
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