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Greensill UK Office: Government members working part-time
Photo: OLI SCARFF / AFP
An ex-prime minister as advisor, a top civil servant in a double role, thousands of jobs at risk: the bankruptcy of the financial services provider Greensill Capital is like a political powder keg in Great Britain.
The media and opposition were stunned on Wednesday that a senior official worked part-time for Greensill while in government - with the permission of the Cabinet Office.
It is also delicate that Bill Crothers, as head of the procurement apparatus - responsible for taxpayers' money of 40 billion pounds - is said to have initiated projects that were in Greensill's interests.
The focus so far has been on former Prime Minister David Cameron, who, like incumbent Boris Johnson, is a member of the Conservative Party.
In spring 2020, Cameron had sought support from Treasury Secretary Rishi Sunak as a lobbyist for Greensill.
The head of government for the years 2010-2016 has now admitted mistakes, but does not want to have broken any rules.
Nevertheless, Parliament should decide on Wednesday whether to open an investigation.
Johnson had ordered an independent review the day before.
He avoided backing Cameron.
The Greensill Group was founded in 2011 by Australian ex-banker Lex Greensill and plays an important role in supply chain financing.
The financial services provider had to file for bankruptcy in mid-March.
This also affects several dozen municipalities in Germany that had invested money in the company's German branch, Bremer Greensill-Bank.
Close interlinking of business and politics
In Great Britain, steel manufacturer Liberty Steel is also in trouble due to bankruptcy.
Its parent company GFG Alliance is in the chalk with several billion pounds at Greensill.
Now 5,000 jobs at Liberty Steel and other GFG steelworks are at risk, especially since Greensill creditors are hoping to get some of their money back from what they claim to be an internationally profitable steel company.
The scandal throws a spotlight on the close links between politics and business in Great Britain.
The Times quoted from the correspondence of former top official Crothers that other government employees also worked part-time for companies.
His dual role is "not unusual".
"Good to know that those responsible for the entire public service have the feeling that they have enough time for six-figure paid appearances outside of business hours in the private sector," said the online portal "Politico".
Crothers eventually switched to Greensill entirely.
As the Guardian reported, Downing Street is alarmed.
It should now be checked how many other civil servants have a second job.
The Times quoted a high-ranking source in the government apparatus, according to which top executives acted from a position of strength and therefore part-time jobs are approved.
“The alternative is they just go.
And it takes a long time to find a good replacement, ”the source said.
“Ministers always say they want private business people with good top-notch skills.
Well, then something like that happens. "
Investigation expanded
In view of the entanglements, Johnson's Conservatives face new moral damage.
The premier quickly ordered the independent investigation headed by attorney Nigel Boardman to be extended to the Crothers case.
The opposition points out, however, that not only Cameron is in the focus.
Acting ministers Sunak and Matt Hancock (Health) also have to answer questions because they met the ex-prime minister on the Greensill matter.
Political opponents have long accused the Tories of nepotism.
For example, at the beginning of the corona pandemic, orders worth billions for masks and other protective clothing were distributed to major donors of the conservatives and friends of ministers without sufficient tendering, as a court criticized.
"The Conservatives have undermined the rules so much that they could tear them up and throw them in the trash," criticized Rachel Reeves of the opposition Labor Party.
mik / dpa-AFX