This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.bbc.co.uk/news/business-57114850
The article has changed 5 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Gupta empire facing UK fraud probe over Greensill | Gupta empire facing UK fraud probe over Greensill |
(32 minutes later) | |
Sanjeev Gupta, head of the GFG Alliance | Sanjeev Gupta, head of the GFG Alliance |
The business empire of Liberty Steel owner Sanjeev Gupta is under investigation by the Serious Fraud Office (SFO). | The business empire of Liberty Steel owner Sanjeev Gupta is under investigation by the Serious Fraud Office (SFO). |
The probe is over suspected fraudulent trading and money laundering, including its financing arrangements with failed company Greensill Capital UK. | The probe is over suspected fraudulent trading and money laundering, including its financing arrangements with failed company Greensill Capital UK. |
Greensill, a major lender to Mr Gupta's business, collapsed last month. | Greensill, a major lender to Mr Gupta's business, collapsed last month. |
GFG Alliance, Mr Gupta's family conglomerate, said it would co-operate fully with the investigation. | |
"As these matters are the subject of an SFO investigation we cannot make any further comment," a GFG spokesperson added. | |
GFG Alliance employs 35,000 people at companies stretching from Wales to Australia. | GFG Alliance employs 35,000 people at companies stretching from Wales to Australia. |
The company's reliance on Greensill caused many to worry that it might itself be at risk following the finance firm's demise. | The company's reliance on Greensill caused many to worry that it might itself be at risk following the finance firm's demise. |
On Thursday, former prime minister David Cameron, who worked for Greensill and lobbied the government on its behalf, appeared before MPs to answer questions about his role. | |
The announcement of a Serious Fraud Office investigation into the workings of Sanjeev Gupta's metals-based empire has serious consequences, before any evidence is even heard. | |
First, the BBC understands that the Department for Business feels vindicated that it did not agree to give the so-called "saviour of steel" a requested government bailout of £170m. | |
Second, and perhaps more importantly, it sets back Mr Gupta's attempts to raise new finance to replace the money it once received from the now defunct Greensill. | |
The government has promised to save the steel plants - owned by Gupta's GFG alliance that are now in dire financial straits - but this investigation makes the chance of it surviving in its current form an increasingly remote possibility. The news comes a day after former prime minister and former Greensill employee, David Cameron, defended his role in lobbying the government to grant Greensill access to a government-backed Covid loan programme. |