Saudi Press

Saudi Arabia and the world
Saturday, Apr 20, 2024

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
Reports in Gaza: 5 dead from the impact of aid packages dropped by the USA
Apple warns against drying iPhones with rice
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
The U.S. vetoed a U.N. Security Council resolution calling for a temporary ceasefire in Gaza, instead proposing its own six-week ceasefire plan contingent upon the release of all hostages held by Hamas
Prince William Urges End to Gaza Conflict
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
EU Calls for Immediate Ceasefire in Gaza Conflict
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
Saudi Arabia Introduces Terms for 30-Year Income Tax Exemption for Multinational Companies
Saudi FM: Establishing Palestinian state is only pathway for Mideast stability
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Elon Musk's Starlink Gets License For Israel, Parts Of Gaza
Influencers Exploit X Platform for Profit Amidst Israel-Gaza Conflict
PM Modi Announces Opening Of New CBSE Office In Dubai
International Criminal Court's Chief "Deeply Concerned" By Rafah Bombing
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Indian female military officers commend Saudi Arabia's progress and women's empowerment
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Israel Utilizes AI Military Technology in Gaza Conflict
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
China Warns Iran to Halt Houthi Attacks or Damage Trade Ties
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Iran-backed hackers interrupt UAE TV streaming services with deepfake news
Facebook and Instagram Ban Iran's Supreme Leader
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
U.S. Secretary of State Blinken: The Israelis underwent dehumanization on 7.10, this does not give them the right to do this to others.
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
UK Bans Misleading "Zero Emissions" Claims for Electric Cars
Gaza's Teen Inventor Sparks Light in Displacement
Netanyahu Rejects Ceasefire Proposal, Insists On Total Victory Over Hamas
Guterres appoints independent UNRWA review panel
Private Sector Employment Hits Record High with Over 11 Million Employees in January
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
ZATCA Cautions Against Scammer Schemes
INTRA Defense Technologies inaugurates drone factory in Riyadh
×