A THANKSGIVING letter written to a cabinet minister by GFG Alliance boss Sanjeev Gupta over the sanction of loans has kicked up a fresh controversy in the UK’s Covid assistance scandal.
In 2020, Gupta wrote to Nadhim Zahawi, the business department minister at the time, and appreciated his “instrumental” role in helping Greensill Capital secure the 400 million loans, media reports said.
Greensill was the main backer of Gupta’s metals empire but the finance company collapsed last year and became the subject of an investigation by the Serious Fraud Office.
Zahawi was also invited to join a ‘small gathering’ organised at Liberty Steel’s plant at Rotherham to “mark the special moment”. The steel company is part of GFG.
“Since you were personally instrumental in getting the BBB’s approval for Greensill Capital to provide financial assistance under the [Covid business loan] programme, it would be very fitting if you could join us to mark this special moment that provides relief to thousands of workers,” Gupta is believed to have told Zahawi in the letter.
However, Zahawi, who is now the education secretary, denied the suggestion that he played a role in the sanctions of the loans. He said the letter was “little more than flattery”.
The loans were approved by the BBB (British Business Bank), a state-owned economic development bank.
A reply to a freedom of information request confirmed some sort of communication took place between Gupta and Zahawi, although it did not reveal the date.
“A text exchange or phone call between Sanjeev Gupta and Nadhim Zahawi took place at an unknown date” in relation to “Covid assistance”, The Times reported, referring to the freedom of information replay.
However, Zahawi’s spokesperson said the government was in no way involved in the sanction of the loans.
“The decision was taken independently by the British Business Bank, in accordance with their usual procedures,” the spokesperson said, according to The Times.
