Greensill: What is the David Cameron lobbying row about?
- Published
Links between the businessman Lex Greensill, the former Prime Minister David Cameron and the government are being investigated by MPs.
Mr Greensill, an Australian financier, is due to appear before the House of Commons Treasury Select Committee on Tuesday, and Mr Cameron will appear on Thursday.
The committee is investigating the collapse of Mr Greensill's firm, and Mr Cameron's attempts to lobby the government on its behalf.
Who is Lex Greensill?
Alexander "Lex" Greensill is a banker and the founder of Greensill Capital, a finance company which went bust in March with the loss of 440 jobs.
In the early 2010s, Mr Greensill worked as an unpaid adviser to Mr Cameron in Downing Street.
Mr Cameron then took a role at Greensill Capital in 2018, two years after leaving office.
He has not said how much he was paid - the former PM had shares in the company, but he denies claims that he told friends he was set to earn as much as £60m from them.
Mr Cameron has been criticised for using private contacts with ministers and government officials to try and win business for Greensill Capital.
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.
Newly released documents show that he and his staff sent ministers and officials 45 emails, texts and WhatsApp messages concerning Greensill in between 5 March and 26 June 2020.
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.
Who else did he lobby?
Emails released by the Treasury show that Mr Cameron and Mr Greensill 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 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 and Lex Greensill meet?
Lex Greensill worked in Downing Street on what's known as supply chain finance - making sure companies are paid on time.
He 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 Greensill Capital would benefit.
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.
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.
Acoba's head, Lord Pickles, has called for ex-ministers who work as lobbyists to go on a register for up to 10 years to ensure "transparency",
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.
Lord Pickles told MPs the case highlighted "a number of anomalies within the system that require... immediate address".
Who's looking into the matter now?
The Treasury Select Committee inquiry is looking into the "lessons" from the firm's collapse, and "the appropriateness of HM Treasury's response to lobbying"
In addition, the prime minister has announced a review into decisions made in government around Greensill's finance scheme and the role of Lex Greensill.
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:
- Public Accounts Committee inquiry into supply chain financing
- Public Administration and Constitutional Affairs Committee inquiry into "topical issues arising around Greensill"
- Civil Service second jobs review - all senior staff have been asked to disclose any second jobs or outside interests
- National Audit Office investigation into how Greensill Capital was allowed to offer government-backed loans during the pandemic
Why did Greensill 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.
Talks are now underway to try to secure Liberty's future.