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What is the Greensill scandal and what has David Cameron done?

PRESSURE is mounting on former Prime Minister David Cameron over his lobbying of key government figures for Greensill Capital.

Boris Johnson has now launched a formal investigation to find out exactly what happened - with the report expected back by June.

David Cameron is coming under increasing pressure over his lobbying for Greensill Capital
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David Cameron is coming under increasing pressure over his lobbying for Greensill CapitalCredit: AP
This is the first picture of David Cameron with Lex Greensill - as they are seen sipping tea during a trip to Saudi Arabia
David Cameron pictured with Lex Greensill - the pair worked closely in Government and then again after leaving Downing Street

What is the Greensill scandal?

Mr Cameron is under fire after sending texts begging Chancellor Rishi Sunak for millions of pounds in Covid bailouts for his new paymasters, who he went to go and work for after leaving No10.

Mr Cameron's former adviser, Lex Greensill, worked closely with the former PM, but both men have been revealed to top links to current ministers.

The pair were reported to go on a camping trip with the Saudi Crown prince a year after the killing of journalist Jamal Khashoggi, the Financial Times claimed.

The scandal deepened last night after it emerged one of his top civil servants worked for Green­sill while they were STILL working in Whitehall.

Ex-top mandarin Bill Crothers took a role as an adviser at the finance capital firm in September 2015, while Mr Cameron was in No10 - but the move was signed off by civil service chiefs.

The next year he quit the civil service and began work as a Greensill director.

But he allegedly failed to ask the parliamentary watchdog for permission — apparently flouting rules to stop civil servants cashing in on government ties.

Labour is calling for a full Parliamentary inquiry into the scandal and forced a vote in the Commons.

But Boris Johnson has said ministers should get MPs to "mark their own homework" and his internal probe will get to the bottom of the matter.

Why does it matter?

Mr Cameron has been accused of using his contacts when he was a politician to lobby government figures to benefit the firm.

Both he and Mr Greensill worked together in Government, before both going on to work for a private company where they attempted to speak with ministers.

While there are thousands of lobbyists from trade unions to environmental groups to multinational corporations, critics have questioned why Mr Cameron was granted the access to key figures after leaving No10.

He also didn't have to declare it in the same way as other registered lobbyists.

Questions have also been raised over the way government Covid contracts were handed out, after introductions that the ex-PM made.

Ex-Labour PM Gordon Brown called for a legal crackdown and impose a five year lobbying ban on ex ministers.

Shadow cabinet minister Bridget Phillipson said: “Through David Cameron, Greensill looks to have had the run of Government from No10 down, including access to millions of pounds of public money.”

Greensill Capital dealt in 'supply chain finance'
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Greensill Capital dealt in 'supply chain finance'Credit: Rex

What did Greensill do?

Greensill Capital dealt in what is known as “supply chain finance” and run by Lex Greensill.

For a fee, the company would pay the seller as soon as the goods are delivered and then get their money back when the bills are actually paid by the customer.

Mr Cameron joined the company in 2018 after stepping down as PM.

In 2018, Greensill Capital won the contract to run a supply chain scheme for pharmacies which would see them paid early for money owed to them from the NHS.

Reports say Mr Cameron told friends he was set to make as much as £60million from the share options he owned in the company - but he has said it was nowhere near this much.

Today Sir Keir Starmer joked that the Line of Duty crew should be hauled in to find out what went on.

Sir Keir said at PMQs today: "The more I listen to the PM, the more I think Ted Hastings and AC12 are needed to get to the bottom of this one!"

He said the Greensill "scandal" was "just the tip of the iceberg" and ministers were presiding over "dodgy contracts, privileged access, and jobs for their mates - this is the return of Tory sleaze."

What was David Cameron's involvement?

As well as texting Mr Sunak, he messaged a senior aide to Boris Johnson just hours after the Treasury rejected his bid for an emergency Covid loan.

The former PM claimed it was “nuts” to exclude his employer Greensill from a multi-billion-pound scheme and asked ministers to reconsider.

In a message uncovered by , Mr Cameron wrote: “What we need is for Rishi to have a good look at this and ask officials to find a way of making it work.”

He sent the Chancellor multiple texts urging him to allow Greensill access to the scheme, which led the Treasury to re-look at it.

But ultimately Treasury bosses said they were only eligible for part of the funds.

Mr Sunak has admitted he responded to Cameron and “pushed” Treasury officials to look at plans that could help the firm.

It also emerged Mr Cameron and financier Lex Greensill lobbied Health Secretary Matt Hancock while having a “private drink” in 2019 to bring in a payment scheme for NHS staff.

Cameron sent Chancellor Rishi Sunak a series of text messages
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Cameron sent Chancellor Rishi Sunak a series of text messagesCredit: Reuters

What has David Cameron said about the row?

The ex-PM last weekend released a grovelling 1,200-word statement admitting he should have acted differently - but refusing to apologise.

He said: "As a former Prime Minister, I accept that communications with government need to be done through only the most formal of channels, so there can be no room for misinterpretation."

Mr Cameron also disputed the figure of £60m he was said to have told friends he could make if the deals were successful.

He said: "Their value was nowhere near the amount speculated in the press.”

But he did not give any further details on the real amount.

What did the watchdog say about David Cameron?

Watchdog The Registrar of Consultant Lobbyists cleared Mr Cameron in March 2021 after it concluded that his activities had not fallen within the criteria that required registration on an official lobbying list.

A source close to him said at the time he was exempt from the register as he had been an in-house employee for Greensill.

His activities were investigated by Harry Rich, the Registrar of Consultant Lobbyists.

"Based on detailed information and assurances provided, Mr Cameron's activities do not fall within the criteria that require registration on the Register of Consultant Lobbyists," the watchdog's decision said.

Liam Herbert, the chairman of the public affairs board at the Public Relations and Communications Association, said it was "inevitable that the registrar would reach this conclusion as unfortunately the legislation fails to cover the vast majority of those engaged in lobbying activities".

"The legislation fails to ensure a level playing field on transparent and ethical lobbying, because it not only excludes literally every single in-house lobbyist but even manages not to cover a significant number of consultant lobbyists, such as lawyers, management consultants and others," he added.

Boris Johnson has launched a formal inquiry into events
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Boris Johnson has launched a formal inquiry into eventsCredit: AFP

How will the independent review work and who is leading it?

Prime Minister Johnson launched a formal probe on April 12 which will investigate Mr Cameron’s role in lobbying Government and access to deals.

The review will be led by lawyer Nigel Boardman, he is a non-executive board member at the government's department for business.

He has been instructed to report “promptly”, and today the PM said he hopes it will be back by June.

The Sun has learned that ministers and special advisers across Whitehall are being asked to declare all contact with the former PM over Greensill.

The Cabinet Office propriety team are looking into all reported contact.

The Prime Minister's official spokesperson says the review will examine the awarding of contracts for supply chain finance.

READ MORE SUN STORIES

"This independent review will also look at how contracts were secured and how business representatives engaged with government," they added.

"There is significant interest in this matter, so the prime minister has called for the review to ensure government is completely transparent about such activities".

Rishi Sunak distances himself from David Cameron after Greensill Capital lobbying row
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