Greensill scandal: Drip, drip of sleaze row batters Tories

A cabinet minister was today forced to deny that the Government was being engulfed by a “drip, drip of sleaze” as MPs started grilling Whitehall mandarins over the Greensill scandal.

Business Secretary Kwasi Kwarteng said a string of inquiries had been launched into the now-collapsed finance firm Greensill Capital, although he admitted that it had raised some “issues”.

MPs vowed to “get to the bottom” of the Greensill affair as they questioned senior civil servants over how the company, which wanted access to a Covid 19 loans scheme, obtained 10 high-level meetings with the Treasury.

Meg Hillier, chairwoman of the Commons public accounts committee, warned that the hearing was an “opening salvo” with more a detailed investigation to follow.

Charles Roxburgh, second permanent secretary at the Treasury, told the MPs that he had nine meetings with Greensill Capital and Sir Tom Scholar, the permanent secretary, had one.

Watch: Firm linked to lawyer leading Greensill lobbying inquiry given £7m in government contracts

Just hours before the committee hearing, Mr Kwarteng denied that the Greensill storm was part of a “drip, drip of sleaze”.

He was asked on LBC Radio about Greensill, the funding of a lavish revamp of Boris Johnson’s Downing Street flat and revelations about texts between the Prime Minister and business tycoon Sir James Dyson.

“I don’t think it is a drip, drip of sleaze,” he responded to a question as to whether it was such a trend.

“Clearly, we need to have very high standards in public life and I think there were issues around Greensill.”

Labour’s deputy leader Angela Rayner said: “Every day there are new reports of Tory sleaze.

“With crony contracts, shady donations and dodgy deals for their mates, the drip, drip, drip is quickly becoming a torrent.” Her comments came as:

The Standard has learned that an unknown Treasury official is now believed to be the source of leaks from Whitehall about phone contacts between Boris Johnson and tycoon Sir James. A molehunt was launched after text exchanges were leaked including of Mr Johnson promising to “fix” a tax issue for Dyson experts who were being flown into the UK to work on emergency NHS ventilators.

Mr Kwarteng strongly defended the Prime Minister, telling Sky News: “In the real world, in reality, people are contacting ministers, contacting MPs, all the time.”

The Prime Minister was coming under growing pressure to reveal how a refurbishment of his flat was financed, amid claims funds came from a Tory donor.

Labour leader Sir Keir Starmer was seeking to turn the string of revelations into a charge of widespread “sleaze” in Government.

Ahead of the committee hearing, chairwoman Ms Hillier told the Evening Standard: “This is the opening salvo in our inquiry into Greensill. We want to know why the Treasury had 10 meetings with the firm before rejecting its attempts to get access to the Covid-19 loans scheme. We are determined to get to the bottom of what happened.”

The committee’s inquiry covers influence and transparency in the Government’s commercial functions, the operation of the Covid-19 financial support packages for business, in particular Greensill Capital’s involvement in the schemes, and protections for suppliers to government and government contractors, including the role of supply chain finance.

A string of other inquiries, including by the Treasury committee and the public administration committee, have now been launched into Greensill.

Rishi Sunak, financier Lex Greensill and David Cameron, who lobbied the Chancellor and other ministers on behalf of Greensill, are being invited to give evidence to the committee.

Sir Tom told the committee this morning that Mr Cameron had texted him about Greensill, as he also did the Chancellor. Mr Cameron has “welcomed” the parliamentary inquiries and his spokesman said he will be “glad to take part”.

The furore is focusing on the use of texts and WhatsApp messages that might have bypassed civil servants. It was reported — and denied by No10 — that Cabinet Secretary Simon Case urged Mr Johnson to change his mobile number to reduce the messages to him from old contacts. Mr Greensill has not commented so far on the controversy, nor has the board of Greensill Capital.

Mr Kwarteng explained: “We have got about six committees looking at the Greensill issue... In Britain, we do have high standards in public life but of course we can always try and make improvements and I’m very pleased to see the Prime Minister has gripped this issue.”

Greensill had approached Treasury officials regarding access to the Covid Corporate Finance Facility, administered by the Bank of England. The firm subsequently filed for insolvency.

Watch: Dodds calls for transparency in Greensill lobbying review

Read More

Government sorry for failure to commemorate black and Asian soldiers

No 10 sleaze claims, moles and an access row rocking Boris Johnson

‘Vaccine passports’ being fast-tracked to allow holidays abroad

How to style 5 key pieces from the BOSS x Russell Athletic collection