David Cameron’s Greensill Lobbying Was ‘Acceptable’, Minister Claims

David Cameron’s lobbying of senior ministers and officials, who he knew as prime minister, on behalf of Greensill Capital was “acceptable”, a cabinet minister has claimed.

Environment secretary George Eustice, Cameron’s former press secretary, said the ex-PM cannot be “begrudged” for taking on a role lobbying for the now-collapsed finance firm Greensill after leaving office.

Eustice also claimed the current system for regulating how ministers declare private sector interests was “actually a pretty good one”.

Labour said the minister’s comments showed “the government’s latest approach appears to be to shrug their shoulders and say ‘scandal? What scandal?’” 

The Tory minister’s defence of Cameron and the rules came after Tory MP Sir Bernard Jenkin, who chairs the Commons liaison committee which questions the prime minister, has also warned that a failure to be “more transparent” than previous governments could see the so-called “red wall” seats turn away from the Tories.

A series of probes have been commissioned, including by Downing Street, as Westminster looks to understand the role Cameron played in securing Whitehall access for Greensill.

The firm was selected as an intermediary lender for some government Covid-19 support loans at the start of the pandemic.

The controversy follows disclosures that Cameron personally lobbied chancellor Rishi Sunak on Greensill’s behalf via text messages and was able to arrange for its founder and his former Downing Street adviser, Lex Greensill, to have a “private drink” with health secretary Matt Hancock.

The saga deepened last week after it emerged the former head of government procurement, Bill Crothers, took a part-time position with the failed firm while still in his Whitehall post.

The Sunday Times has now reported that Cameron contacted a former Cabinet Office contact who has since moved onto a senior NHS position to help secure a lucrative health deal, allowing Greensill to roll out its advance payment app, Earnd, to doctors and nurses.

Greensill’s collapse now risks thousands of jobs, particularly in the steel sector.

Shadow communities secretary Steve Reed said the revelations surrounding Greensill were “shocking” and evidence that the “era of Tory sleaze is well and truly back”.

The Labour frontbencher told Ridge on Sunday on Sky News: “You’ve got a former prime minister (David Cameron) employed by a wealthy organisation who is then using his personal relationships with existing ministers, including the chancellor of the exchequer, persuading them to do favours, favours that would not have been open to other businesses or organisations.”

But Cameron was defended by his former aide Eustice, who suggested that the former PM should have written more formal letters to the likes of Sunak rather than informal messaging.

The environment secretary told Ridge: “I think the real point is. ‘has he done anything wrong?’ Well, on the face of it, no. There’s a review that is going on, we mustn’t prejudge that.”

He then told the BBC’s Andrew Marr Show: “I think the key thing is that he has not broken any of the rules.

“It is acceptable, because it was within the rules.

“The point I would make is that ministers, when they leave office, including prime ministers, aren’t allowed to take any such paid roles for two years – these are rules that David Cameron himself brought in.

“He left office some five years ago and you can’t begrudge people moving on to another career.”

Eustice conceded “tweaks” to the rules may be needed following No.10’s review, which is being led by City lawyer Nigel Boardman, and various parliamentary probes.

“But fundamentally, I think the systems we have in place with ministers declaring interests with the ministerial code and the focus on that and how ministers conduct themselves in office is actually a pretty good one,” Eustice told Ridge.

Responding to Eustice’s interviews, Labour’s shadow Cabinet Office minister Rachel Reeves said: “Less than a week since the government announced the Boardman review, ministers are openly admitting it has no powers whatsoever.

Having failed to deflect the blame, the Government’s latest approach appears to be to shrug their shoulders and say ‘scandal? What scandal?’.

“The public know that the cosy relationship between the Conservative government, commercial lobbyists and taxpayer money stinks of sleaze. It’s one rule for them, another for everybody else.

“We don’t need the ‘tweaks’ Eustice said they might consider today, we need to tackle Tory sleaze with a full, independent, transparent inquiry – and we need stronger measures to put integrity and honour back into heart of government.” 

Liberal Democrat leader Sir Ed Davey dismissed Eustice’s claims, insisting that relying on the ministerial code leaves the prime minister as “judge and jury” in deciding if a minister has breached ethics standards.

“I’m very worried that the ministerial code isn’t properly enforced,” Davey said.

“We’ve seen (Sir) Alex Allan, the independent adviser for ministerial standards, resign and [a replacement has not been appointed].

“I’d like to see an independent body enforcing the ministerial code, not the prime minister – that’s wrong.

“It’s wrong that a politician should be the judge and jury of who decides who has broken the ministerial code, and what I would like to see is an independent body, just like we have IPSA over MPs pay and expenses, that could say: ‘this minister has broken the code’ and whether they can’t have their ministerial pay.

“That would be the sort of penalty that I think the public would like and would rebuild trust in British politics.”

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Greensill Scandal: Whitehall Chief Under David Cameron Took Job With Finance Firm

Since 2018, Greensill has filed for insolvency after failing to secure support through the government’s Covid corporate financing facility. Its collapse threatens thousands of jobs in Liberty Steel.

In a letter to the cabinet secretary Simon Case, shadow chancellor Anneliese Dodds and Reeves called for a “full, transparent and thorough investigation” into Greensill’s links with the Conservative government.

“The irresponsible behaviour of Greensill Capital and its almost unparalleled access to the heart of government raises serious questions about what kind of businesses the government is engaging with,” they said.

The latest claims came after Labour said it had been handed a business card dating from Greensill’s time working as an adviser in the Cabinet Office, describing him as a senior adviser in the prime minister’s office.

The card, which was said to have been given to an industry figure in 2012 shortly after Greensill became an unpaid adviser on supply chain finance issues, included a Downing Street telephone number and email address.

After he left office, Cameron became an adviser to Greensill Capital, and reportedly personally lobbied chancellor Rishi Sunak for cash support for the firm through the Covid Corporate Financing Facility.

He took the job two years after leaving No 10 and therefore it did not require the approval of Acoba.

Asked about Cameron’s approach, Sunak told ITV News: “I think it’s important that, whoever people are, whether they’re prime ministers or anyone else, that they follow the rules and the guidelines that we have in place for lobbying.

“We have the rules in place for good reason. And I think whoever you are, it’s important processes are appropriately followed.”

Prime minister Boris Johnson, meanwhile, has failed to back a parliamentary inquiry into government links with Greensill but has committed to a review of how the company was able to secure government contracts. 

The independent probe will be led by lawyer Nigel Boardman. 

Johnson told broadcasters on Tuesday, it will be given the “maximum possible access” to those involved.

“I’ve asked Nigel Boardman to have a look at this whole issue of supply chain finance and given him pretty much carte blanche to ask anybody whatever he needs to find out,” Johnson said. 

“I would like it to be done quickly, but I want him to have the maximum possible access so we can all understand exactly what has happened, and that will of course be presented to parliament in due course.”

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Boris Johnson Orders Independent Probe Into Cameron Lobbying Row

Boris Johnson has ordered an independent review of David Cameron’s lobbying of the government on behalf of finance firm Greensill Capital.

The prime minister’s official spokesperson announced that City lawyer Nigel Boardman will lead a probe into links between the company and ministers, including personal approaches made by Cameron.

MPs have demanded answers after it emerged that the former premier had personally emailed and texted Chancellor Rishi Sunak and others to help Greensill win Whitehall contracts and financial roles.

Sunak is under huge political pressure for his admission that he sent a text to Cameron in which he said he had “pushed” Treasury officials to look at helping the firm with access to multi-million pound Covid support schemes.

In a new move, Speaker Lindsay Hoyle granted shadow chancellor Anneliese Dodds an urgent question to be answered on Tuesday into the row.

Dodds’ question calls on Sunak to deliver “a statement on the process by which Greensill Capital was approved as a lender for the Coronavirus Large Business Interruption Loans Scheme”.

Cameron broke his silence on the row on Sunday, saying he should have acted “through only the most formal of channels” rather than personally texting Sunak. 

Johnson wants the new probe to be completed “promptly”, the spokesperson said.

“The Cabinet Office is commissioning an independent review on behalf of the prime minister to establish the development and use of Supply Chain Finance and associated activities in government, and the role Greensill played in those,” he said.

“This independent review will also look at how contracts were secured and how business representatives engaged with government.

“The PM has called for the review to ensure government is completely transparent about such activities, and that the public can see for themselves if good value was secured for taxpayers money.”

Greensill collapsed into administration in March, which in turn put at risk one of its biggest clients, steelmaker Liberty Steel.

The Financial Times and Sunday Times have revealed how the firm’s founder Lex Greensill had unprecedented access within Whitehall as he sought to get the government to use his finance firm to offer loans for public services.

And Cameron, who was hired by Greensill after he left office, piled pressure onto ministers in the Treasury to grants access to Covid support funds for the firm over the past year.

The ex-PM also lobbied health secretary Matt Hancock. He brought Lex Greensill and director Bill Crothers to private drinks with Hancock in 2019, when they lobbied for the adoption of a payment scheme for doctors and nurses that was later rolled out within the NHS.

After weeks of refusing to comment, Cameron issued a statement on Sunday to the PA news agency, in which he said that having “reflected on this at length” he accepts there are “important lessons to be learnt”.

On Monday morning, former PM Gordon Brown called for tougher rules to prevent ex ministers lobbying within government, claiming it “brings public service into disrepute”.

Cameron insists that he broke no codes of conduct on former ministers’ links to government, but several MPs from all parties have called for tighter rules.

Labour insists that Sunak has questions to answer over whether he broke the ministerial code in “pushing” officials to help Greensill on Cameron’s behalf.

The chancellor last week voluntarily published his texts to the ex-PM under the Freedom of Information Act, although Cameron’s texts have not yet been published. Treasury sources insist that officials rebuffed Cameron’s main request in the proper way.

Boardman, who has spent years as a partner at the City law firm Slaughter and May, is a non-executive board member of the Department for Business and chair of the government’s Audit, Risk and Assurance committee.

He conducted a review of the Cabinet Office’s procurement processes which was published in December, 2020.  “He seems like he is an experienced person to lead this independent review,” the PM’s spokesperson said.

But shadow Cabinet Office minister Rachel Reeves said: “This has all the hallmarks of another cover-up by the Conservatives.

“Just as with the inquiry into Priti Patel’s alleged bullying, this is another Conservative Government attempt to push bad behaviour into the long grass and hope the British public forgets.

“The Conservatives can’t be trusted to yet again mark their own homework. We need answers on Greensill now – that means key players in this cronyism scandal like David Cameron, Rishi Sunak and Matt Hancock appearing openly in front of Parliament as soon as possible to answer questions.”

Boardman’s former firm Slaughter and May, which is part of the so-called “Magic Circle” of corporate law companies, came under fire in 2018 during collapse of public-private sector construction giant Carillion.

Labour had accused such corporate law firms of “circling Carillion like vultures, squeezing every last penny of fee income as the company was going down”.

Boardman, whose late father was Tory cabinet minister Tom Boardman, would “access to the documents that he needs”, No.10 said.

Asked whether Johnson believed lobbying rules needed to be changed, the prime minister’s official spokesperson replied: “As you have seen from what we have announced today, the prime minister understands the significant public interest in this and wants to look at the issues raised and get more details.

“But I think you can judge from his actions.”

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Fresh Calls For Inquiry Into David Cameron’s Ties With Scandal-Hit Banker

Calls have intensified for an inquiry into David Cameron’s involvement with a scandal-hit banker after allegations surfaced that Lex Greensill was given privileged access to Whitehall departments.

An investigation by the Sunday Times alleged that Greensill enriched himself through a government-backed loan scheme he designed after the then prime minister gave him access to 11 departments and agencies.

He founded Greensill Capital, the firm that went on to employ Cameron but later collapsed, causing uncertainty for thousands of jobs at Liberty Steel, having been its main financial backer.

Labour and Sir Alistair Graham, former chairman of the Committee on Standards in Public Life, called for a full inquiry into the “scandal”.

The allegations surfaced after the former Conservative leader faced scrutiny for reportedly trying to persuade government figures to grant emergency loans to Greensill Capital, where he was an adviser.

The Sunday Times report alleged the Australian financier was given access to the departments while Cameron was in No 10 so he could promote a financial product he specialised in.

The Pharmacy Early Payment Scheme, announced in 2012, saw banks swiftly reimburse pharmacists for providing NHS prescriptions, for a fee, before recovering the money from the government.

Greensill Capital went on to provide funds for the scheme.

Geensill could not be reached for comment, but the newspaper said he was understood to deny making large returns from a pharmacy deal.

Sir Alistair said: “There clearly should be a full inquiry because it sounds like a genuine scandal in which the public purse was put at risk without proper political authority.”

Labour’s shadow chancellor of the Duchy of Lancaster, Rachel Reeves, said: “These reports raise very serious questions about the conduct of former Conservative prime minister David Cameron and the access he gave Lex Greensill to ministers and Whitehall departments.

“The British people deserve answers to those questions. That’s why the Conservatives should agree to an urgent inquiry so we can get to the bottom of this latest scandal.”

Culture Secretary Oliver Dowden defended his long-term ally on Sunday, saying Cameron is a “man of utmost integrity and I’ve no doubt at all he would have behaved properly”.

Asked on The Andrew Marr Show if there would be an inquiry, the Cabinet minister responded: “As far as I can tell, no decision in government policy was changed as a result of any meetings that took place. They’d be properly declared.”

A government spokesman said: “Lex Greensill acted as a supply chain finance adviser from 2012 to 2015 and as a crown representative for three years from 2013.

“His appointment was approved in the normal manner and he was not paid for either role.”

The office of Cameron, who was prime minister between 2010 and 2016, has not responded to a request for comment.

He was cleared of breaking lobbying rules by a watchdog after reportedly asking Chancellor Rishi Sunak to support Greensill Capital through the government’s Covid Corporate Financing Facility.

The Registrar of Consultant Lobbyists concluded that Cameron was an employee of Greensill Capital so was not required to declare himself on the register of consultant lobbyists.

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