National Audit Office Launches Latest UK Probe Into Greensill
Najiyya Budaly, 16 April 2021
Britain’s public spending regulator said on Friday that it will investigate why the government accredited collapsed finance company Greensill Capital to provide cash to struggling businesses through the national COVID-19 support scheme.
The National Audit Office, an independent parliamentary body, said it will launch a probe into the role of Greensill in offering the Coronavirus Large Business Interruption Loan Scheme to large businesses on behalf of the government. It is the latest probe into government links to the supply-chain finance firm, which is in administration.
Chancellor of the Exchequer Rishi Sunak announced the loan scheme in April 2020 to bring relief to businesses with annual turnovers of more than £45 million ($62 million) during the pandemic. The program allowed large companies to apply for a business interruption loan of up to £50 million, depending on their turnover.
The government-backed loans were available from lenders accredited by the British Business Bank, a state-owned entity. The National Audit Office, which is responsible for auditing the government, said on Friday that the bank authorized Greensill Capital to issue financial support to struggling companies under the loan scheme in June 2020.
