Funds were extended to steel businesses controlled by Sanjeev Gupta, whose possible links to government are under scrutiny
The Greensill Bank entrance in central Bremen, Germany, July 3 2019. Picture: REUTERS/Fabian Bimmer
British Business Bank had granted Greensill the ability to make £400m of loans with guarantees from the government under a pandemic relief programme. At the height of the pandemic last year, the government and British Business Bank launched emergency lending programmes to support companies struggling with the fallout of the lockdown.
Staff at BEIS asked if Greensill could be permitted to lend more than the maximum £50m to a borrower and asked for the decision to be given priority, the audit office’s report said. Greensill was limited to that amount under its guarantee from British Business Bank. Emails sent to British Business Bank confirmed that Liberty Steel, part of GFG, was lobbying the department to help Greensill provide it with finance, including suggesting that Greensill be given a bespoke guarantee to lend to the metals conglomerate, the report said.
Greensill made eight loans in total under the programme, seven of which went to GFG companies. Grant Thornton, Greensill’s administrators, in April told British Business Bank that it rejected the allegation that it had violated the terms of the programme, according to the report.