The French investigation into the activities of GFG Alliance, a conglomerate of the steel magnate Sanjeev Gupta, for “
abuse of social
assets
” and “
money laundering
” has been extended to the Aluminum Dunkirk foundry (North) and has been carried out since this summer in Paris, AFP journalists learned on Monday from corroborating sources.
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The Vienna prosecutor's office had opened a first preliminary investigation after the disappearance of a loan guaranteed by the State granted by the financial company Greensill, since bankrupt, to the Liberty Aluminum Poitou foundry, Ingrandes-sur-Vienne (Vienna) , belonging to the GFG group. At the end of October, the Paris prosecutor's office confirmed to AFP the information from Challenges according to which it had resumed on July 23 this investigation opened for "
counts of abuse of corporate assets and money laundering."
The investigations were entrusted to the Oclciff, the anti-corruption office.
Asked by AFP, GFG said "
not to be aware of such an investigation and refutes any allegation of irregularity in its French activities
".
Sunday, the Financial Times (FT) had indicated that this investigation concerned, in addition to the foundry of Vienne, the activities of GFG at the Aluminum Dunkirk foundry in Loon-Plage.
A source familiar with the matter confirmed the information to AFP on Monday.
The ownership of this aluminum smelter, the largest in Europe, is disputed.
On October 1, private equity firm American Industrial Partners (AIP) announced that it was the new owner.
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GFG Alliance in return announced a "
legal process
" to counter "
any attempt
" to take control of AIP.
According to the FT, the Dunkirk part of the investigation concerns “
an agreement made
” by GFG with the Swiss commodities giant Glencore to “
push back the attempted takeover of AIP
” over the foundry.
This would also concern the supposed use of 25 million euros from the foundry's cash to settle a dispute with the Anglo-Australian mining giant Rio Tinto, owner of the foundry before its acquisition by GFG Alliance in 2018.
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The two giants settled their dispute via an arbitral tribunal which “
ordered GFG to pay 25 million euros to Rio Tinto.
GFG, as he doesn't have a penny, came to take the money from Dunkirk's accounts
, ”Laurent Geeraert, CGT secretary of the Social and Economic Committee in Dunkirk, told AFP.
“
There has been a commercial agreement with Glencore, at market price, to secure stable funding for these activities,
” commented GFG.
Since the bankruptcy in March of the loan company Greensill, of which he was a major client, GFG Alliance has been in serious financial difficulty.
An investigation across the Channel for "
suspicion of fraud
" and "
money laundering
" is also targeting the group.
