Greensill: What is the David Cameron lobbying row about?
- Published
Links between former Prime Minister David Cameron, the government and the finance company, Greensill Capital, have come under scrutiny from MPs and official bodies.
Mr Cameron has been criticised for lobbying ministers on behalf of the company, in which he had a commercial interest.
It's also been revealed he contacted Treasury officials and the Bank of England in an attempt to gain Greensill access to a Covid loan scheme.
What did David Cameron do?
In 2020, Mr Cameron lobbied ministers unsuccessfully to allow Greensill to issue government-backed loans, as part of the Corporate Covid Financing Facility (CCFF) - a scheme to help big firms through the pandemic.
During this time, Mr Cameron contacted government ministers on several occasions, including sending text messages to Chancellor Rishi Sunak and contacting Treasury ministers Jesse Norman and John Glen about the company.
Greensill Capital collapsed in March with the loss of 440 jobs.
Who else did he lobby?
Emails released by the Treasury show that Mr Cameron and Lex Greensill (the company's founder) also contacted senior civil servants in 2020 about their CCFF request.
The department's top civil servant, Sir Tom Scholar, has told MPs that Mr Cameron called and texted him on his official phone.
The Bank of England has also published correspondence showing that Mr Cameron had contacted senior officials there several times, in an unsuccessful attempt to win their support.
He also met Health Secretary Matt Hancock - along with Mr Greensill - for a "private drink" in 2019 to discuss a new payment scheme for NHS staff.
How did David Cameron come to work for Greensill?
David Cameron was prime minister from 2010 to 2016.
During this time, he appointed Australian financier Lex Greensill as an unpaid adviser.
He was working on what's known as supply chain finance - making sure companies are paid on time.
Mr Greensill was allowed to develop a scheme that would ensure small firms were paid more quickly by government departments.
A Sunday Times investigation claims many in Whitehall had serious reservations about his role, and about the value of the scheme, from which his own company, Greensill Capital, would benefit.
Two years after leaving office, Mr Cameron took a job with Greensill Capital.
He has not said how much he was paid - Mr Cameron had shares in the company, but he denies claims that he told friends he was set to earn as much as £60m from them.
Why was Mr Cameron's lobbying controversial?
Mr Cameron has been criticised for using informal channels, such as texts and "private drinks" to pursue Greensill's case with ministers.
In a statement, Mr Cameron admitted he should have contacted the government "through only the most formal of channels" when lobbying for a financial firm.
But he denied that he broke any codes of conduct or any government rules on lobbying.
However, the Labour Party says that existing lobbying rules do not provide enough transparency.
And another former prime minister, Gordon Brown, has said that former ministers should never lobby for commercial purposes.
What do the rules say?
Current rules state that "on leaving office, ministers will be prohibited from lobbying government for two years".
Before accepting new jobs, former ministers are supposed to inform a body called the Advisory Committee on Business Appointments (Acoba).
Acoba advises civil servants and politicians on what they can and can't do after leaving public service.
However, although former ministers are required to contact Acoba, they are not obliged to act on its advice.
Who else has been involved?
It has also been revealed that a senior civil servant took a part-time job as an adviser at Greensill Capital in 2015, while he was still on the civil service payroll.
Bill Crothers says his appointment was "agreed" by the Cabinet Office.
As a civil servant, Mr Crothers was not obliged to seek Acoba's advice.
Acoba's head, Lord Pickles, has told MPs the case highlights "a number of anomalies within the system that require... immediate address".
How has the government reacted?
The prime minister has announced a review into decisions made in government around Greensill's finance scheme and the role of Lex Greensill.
It will be headed by government lawyer Nicholas Boardman and will report back to Boris Johnson by the end of June. Downing Street says the review will look at "how contracts were secured and how business representatives engaged with government".
Labour has criticised the scope of the review - which is not expected to have any legal powers.
Several other reviews are investigating matters related to lobbying and Greensill. Among them are:
Mr Cameron says he will "respond positively" to any requests to give evidence to the Treasury Select Committee.
However, this does not mean he will necessarily appear in person to answer MPs' questions.
Why did Grensill go bust?
The company's collapse earlier this year was triggered after its insurer refused to renew cover for the loans Greensill was making.
Greensill was the principal financial backer of Liberty Steel, which employs 3,000 people in England, Scotland and Wales.
Liberty Steel's future is now in doubt.