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Saturday, November 23, 2024

Greensill Capital scandal ‘biggest in a generation’

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David Cameron took financier Lex Greensill for a private drink with Health Secretary Matt Hancock to discuss an app later offered within the NHS, Sky News has confirmed.

The Treasury also reconsidered an application from Mr Greensill for an emergency coronavirus loan after Mr Cameron – who was prime minister between 2010 and 2016 – messaged one of Boris Johnson’s senior advisers, The Sunday Times reported.
It is understood that Number 10 forwarded an email, sent by Mr Cameron, to the Treasury and had no further involvement with Greensill Capital.

The journalists who broke the story explain the genesis and context:

The recent developments mark the continuation of a lobbying controversy surrounding Mr. Cameron, where concerns have mounted regarding his efforts to secure opportunities for the finance company. Following these events, the firm eventually collapsed, placing thousands of UK steelmaking jobs in jeopardy.

After departing from Downing Street, Mr. Cameron served as an advisor for Greensill Capital. Despite the growing scrutiny labelled by Labour as a “growing scandal,” Cameron has yet to make a public statement on the matter.

It’s been reported that Mr. Greensill corresponded with Mr. Hancock’s office in August 2019, allegedly including NHS England chairman Lord Prior in the communication. Greensill proposed a payment scheme involving an app called Earnd, developed by his company, aiming to grant the NHS access to it.

In October 2019, Mr. Hancock sought guidance from officials regarding this proposal. Subsequently, a meeting took place where Mr. Cameron, Mr. Greensill, and Mr. Hancock convened for a drink. The discussion revolved around the concept of compensating doctors and nurses on a daily or weekly basis using this application.


Matt Hancock is 'changing the law' to enable nurses to administer flu jabs. Let that sink in

Civil servants reportedly deemed the “concept” behind the idea as “positive,” according to information obtained. However, insiders indicated that Mr. Hancock aimed for other suppliers to have the opportunity to offer similar services, emphasising that the service should be free for both employees and taxpayers. Additionally, he purportedly expressed that the decision to adopt this approach should lie with local NHS managers.

There were mentions that Wagestream, another service provider, proposed its offerings. Even after the informal meeting, Mr. Hancock continued to advocate for these specific conditions.

In October of the previous year, NHS Shared Business Services (NHS SBS), a partnership between the Department of Health and Social Care and a French IT company, declared that Earnd would be accessible at no cost to NHS employees for accessing their salaries.

An ally stated that Mr. Hancock directed Mr. Greensill to collaborate directly with the NHS rather than his department, emphasising that the ultimate choice to implement the scheme rested with local NHS employers.

A spokesperson for the Department of Health and Social Care (DHSC) affirmed, “The wellbeing of NHS staff is our utmost priority… Our approach has been and remains that local NHS employers are best suited to determine how different pay flexibilities align with their overall compensation and benefits strategy.”

Labour has called for an inquiry and urged Chancellor Rishi Sunak to address the “escalating controversy.” Shadow chief secretary to the Treasury Bridget Phillipson criticised the Conservative government for alleged cronyism, particularly pointing to David Cameron’s involvement with Greensill, suggesting an extensive influence from Number 10 and access to public funds.

Labour MP Dame Margaret Hodge, a former chair of the Commons Public Accounts Committee, demanded an immediate independent inquiry into the matter, expressing deep concern over the situation.

Update:

The final word has to be from Dennis Skinner:

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