David Cameron faces mounting pressure over Greensill lobbying scandal

Labour Party fears review will fail to properly scrutinise ex-prime minister’s role in cronyism row

After stepping down from government, David Cameron became an adviser for Mr Greensill’s company. AFP

A lobbying furore involving former UK prime minister David Cameron intensified on Wednesday as it was revealed a senior official was on the payroll of financial firm Greensill Capital while in charge of the government’s £40 billion ($55.05bn) annual procurement budget.

The company, run by investment banker Len Greensill, went into administration in March, putting thousands of UK jobs at risk and sparking a political storm over Mr Cameron's efforts to secure taxpayer funds.

Prime Minister Boris Johnson on Monday ordered a review after it was revealed that Mr Cameron had exchanged texts with UK Finance Minister Rishi Sunak and set up a private meeting with Health Secretary Matt Hancock as he sought finance for the ailing company.

Critics said a review was unlikely to find the underlying cause of alleged cronyism at the heart of government. Ruling party Conservative MPs were expected to block demands for a full parliamentary inquiry into links between paid lobbyists and government.

The offices of collapsed finance firm Greensill near Warrington, northwest England. AFP

Britain’s main opposition Labour Party called for an “overhaul of the whole broken system” after reports that a senior official joined Greensill as a part-time adviser in September 2015, two months before leaving the civil service.

Bill Crothers, the former head of government procurement, was criticised by a Whitehall watchdog for failing to seek its approval before taking a directorship at Greensill, although the move was approved by the government.

Labour said the episode symbolised a revolving door through which officials and politicians took paid employment with private industry while retaining access to decision-makers in control of multi-million-pound budgets.
Labour leader Keir Starmer said the review would "not be looking at very much" and called for a broader inquiry. "Dodgy contracts, privileged access, jobs for their mates … this is the return of Tory sleaze," he said.

The ruling Conservative Party passed a lobbying law in 2014 designed to increase transparency, and a committee examines appointments of departing ministers to ensure no rules are broken. Campaigners said the latest case showed the rules were ineffective.

Greensill Capital was the principal financial backer of a conglomerate that included Liberty Steel, which employs some 3,500 people in the UK.

It was given a lucrative role in “supply chain finance” arrangements, under which it paid contractors on behalf of the government before being reimbursed by the Treasury.

The system was designed to speed up payments to contractors including pharmacies, but critics say the government should have paid the contractors directly.

When Mr Cameron was prime minister, he hired Mr Greensill as a senior adviser. After Mr Cameron left office in 2016, he worked as a lobbyist for the company.

“I share the widespread concern about the stuff we are reading at the moment,” Mr Johnson told Parliament on Wednesday as he faced a series of questions about the affair.

He said it was not clear that boundaries between government officials and businesses had been “properly understood” and he appointed a lawyer who will report in June.

Mr Cameron broke his silence last week and admitted he made a mistake in sending private text messages to Mr Sunak but defended his right to contact the ministry.

“I thought it was right for me to make representations on behalf of a company involved in financing a large number of UK firms,” he said. “This was at a time of crisis for the UK economy, where everyone was looking for efficient ways to get money to businesses.”