Saudi Press

Saudi Arabia and the world
Saturday, Feb 22, 2025

UK Opens Fraud Probe Into Billionaire Sanjeev Gupta's Steel Group

UK Opens Fraud Probe Into Billionaire Sanjeev Gupta's Steel Group

GFG Alliance, owned by Indian-British billionaire Sanjeev Gupta, had been Greensill's biggest customer at the time of the finance giant's notorious collapse.

Britain's Serious Fraud Office on Friday launched a probe into steelmaker GFG Alliance, focusing partly on links with its collapsed financier Greensill.

GFG Alliance, owned by Indian-British billionaire Sanjeev Gupta, had been Greensill's biggest customer at the time of the finance giant's notorious collapse.

GFG said it would cooperate fully with the investigation.

Greensill's spectacular implosion threatens 50,000 jobs at companies around the world that relied on its financing for their supply chains, including GFG.

It also has rekindled debate on close ties between the upper echelons of British politics and finance, with former prime minister David Cameron quizzed by lawmakers on his Greensill lobbying role this week.

"The SFO is investigating suspected fraud, fraudulent trading and money laundering in relation to the financing and conduct... of companies within the Gupta Family Group Alliance, including its financing arrangements with Greensill Capital UK Ltd," the SFO said in a brief statement on Friday.

It added that no further comment would be made on the live investigation.

In a separate statement, GFG Alliance said it "is making progress in the refinancing of its operations which are benefitting from... the very strong steel, aluminium and iron ore markets".

'Potentially criminal' allegations


Britain's City watchdog the Financial Conduct Authority earlier this week launched its own Greensill probe, revealing that "potentially criminal" allegations had been made about the circumstances of its collapse.

The Greensill affair shone a light on Gupta's own criticised business practices, with the UK government describing the GFG structure as "very opaque" after declining to rescue it.

Greensill Capital, which bypassed strict regulations forced upon traditional banks, specialised in short-term corporate loans via a complex and opaque business model that ultimately sparked its declaration of insolvency in March.

GFG has operations in more than 35 countries across the world, and annual global revenues of about $20 billion according to its website.

The group has 35,000 staff worldwide, including 5,000 in Britain where its Liberty Steel division is based.

Friday's news came one day after Cameron insisted he acted appropriately in controversial lobbying for Greensill.

British lawmakers questioned him following months of scandal and revelation about his lobbying ahead of the company's collapse.

The former Conservative leader, who was an adviser to Greensill and reportedly held lucrative stock options that are now worthless, maintains he was acting in the public good.

"I really believed in the solution that we had and we were putting to government that I thought would make a difference," Cameron told the virtual Treasury Committee hearing, in his first public appearance addressing the scandal.

"I would never put forward something that I didn't think was absolutely in the interests of the public good," he said, adding he was motivated to provide a solution for small business during "exceptional times".

'Damaging' lobbying claims


Cameron, in power from 2010 to 2016, faced a series of damaging claims he improperly and excessively lobbied former government colleagues seeking support for the stricken London-headquartered company early in the pandemic.

Documents showed this week that Cameron and his office staff last year sent ministers and officials 45 emails, texts and WhatsApp messages relating to Greensill, bypassing official channels.

Finance minister Rishi Sunak has previously said he "pressured" his staff to look into Cameron's requests, but insisted they independently assessed the proposals and ultimately rejected them.

Prime Minister Boris Johnson last month ordered a senior lawyer to investigate the entire episode.

Australian banker Lex Greensill, the founder of the bankrupt financial company, appeared Tuesday before the same committee and insisted he took "full responsibility" for its collapse.

"To all of those affected by this, I am truly sorry," Greensill said.

He also laid blame at insurer Tokio Marine, which withdrew cover to loans issued to Greensill clients amid the coronavirus pandemic.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Saudi Arabia and the United States Strengthen Ties Amid Global Developments
Saudi Arabia Hosts Global Conference to Promote Islamic Unity
The Impact of Artificial Intelligence on Education and Child Development
Saudi Arabia Announces Competition for Best Founding Day Outfits
Saudi-EU Food Security Officials Hold Talks to Strengthen Collaboration
Putin Expresses Gratitude to Saudi Crown Prince for Hosting US-Russia Talks
UK and Saudi Arabia Enhance Collaboration in Innovation and Technology
Denmark's Embassy in Riyadh Showcases Danish Cuisine with Saudi Influence
Saudi Artist Salman Al-Amir Unveils 'Tafawut' Exhibition in Riyadh
Saudi Arabia Offers Condolences to Kuwait Following Military Exercise Fatalities
Saudi Ministry of Islamic Affairs Completes Ramadan Preparations in Madinah
Etidal Secretary-General Hosts UN Counter-Terrorism Director in Riyadh
ADNOC Drilling Targets Over $1 Billion in Investments for 2025 Amid Gulf Expansion Plans
Derayah Financial Achieves Remarkable Growth in Saudi Brokerage and Asset Management
Saudi Arabia Shortlists 30 Firms for Mining Licenses in Eastern Province and Tabuk
Saudi Foreign Minister Engages Counterparts at G20 Meeting in Johannesburg
Oil Prices Decline Amid Rising US Inventories
Saudi Arabia's NDMC Plans Green Bond Issuance by 2025
Moody’s Affirms Egypt’s Caa1 Rating Amid Positive Economic Outlook
Oman and Saudi Arabia Strengthen Economic Ties with New Agreements
Saudi Arabia Investments Propel Expansion of Qurayyah Power Plant
Saudi Capital Market Authority Advances SPACs and Direct Listings
Global Energy Leaders Gather in Riyadh for Symposium on Energy Outlooks
Al-Ahsa Region Sees 500% Growth in Tourism as Saudi Arabia Prioritizes Development
Saudi Arabia Advances Entrepreneurial Ecosystem in Al-Ahsa with New Agreement
King Salman Approves Official Saudi Riyal Symbol
Saudi Credit Card Lending Reaches $8.4 Billion Amid Digital Payment Expansion
King Salman Approves Official Symbol for Saudi Riyal
Putin Thanks Saudi Crown Prince for Facilitating U.S.-Russia Discussions
Saudi Foreign Minister Attends G20 Meeting in Johannesburg
Saudi Arabia Prepares for Nationwide Founding Day Celebrations
Inauguration of Hira Park and Walkway Enhances Jeddah's Urban Landscape
Crown Prince Hosts Leaders for Informal Meeting in Riyadh Amid Gaza Rebuilding Plans
Saudi Official Highlights Achievements and Media's Role in National Transformation
Three Expatriate Women Arrested for Prostitution in Riyadh
Saudi Arabia's Diplomatic Evolution Highlighted at Saudi Media Forum
Healthy Eating and Preparation Essential for Ramadan Fasting
Saudi Arabia and Japan Forge Sustainable Textile Partnership
Advanced Limb Surgery Restores Mobility in Pediatric Cancer Patient
Jeddah Event Explores AI's Role in Boosting Saudi Arabia's SME Sector
UN Representative Highlights AI's Role in Perpetuating Gender Stereotypes
Saudi and Jordanian Leaders Discuss Enhanced Security Cooperation in Amman
Saudi British Society Honors Cultural Bridge-Builders at London Gala
Saudi Media Forum 2025 Explores AI's Role in Modern Journalism
Saudi Arabia's Saqer Al-Moqbel Appointed as WTO General Council President for 2025–2026
Saudi Deputy Ministers Engage in Diplomatic Discussions with U.S. and Dutch Officials in Riyadh
Saudi Arabia to Launch Iftar Program in 61 Countries During Ramadan
Saudi Visitors Expected to Spend £942 Million in UK During 2025
Saudi Arabia Gifts Kaaba's Kiswah to Uzbekistan's Center of Islamic Civilization
Digital Cooperation Organization Concludes Fourth General Assembly with Multiple Agreements
×