Irish Post-state taxpayers may be liable for up to 335 million pounds Bank A “seriously inadequate” inspection was conducted on a failed loan company, Congressman Said.
Politicians also questioned why the bank was “not curious enough” about the implied reports Greenhill Almost collapsed, and said the checks on lenders were “seriously insufficient”.
The scandal surrounding Greensill has spread in Westminster, accusing the lender of preferential treatment.
Former Prime Minister David Cameron used his position as a consultant to call the Chancellor of the Exchequer Rishi Sunak and Treasury officials several times before the downfall of Greensail to ensure that he Getting loans during the epidemic triggered several investigations.
The committee reviewing the role of British commercial banks said: “After the British commercial bank failed to conduct adequate due diligence on Greensill Capital, taxpayers’ funds of up to 335 million pounds are facing greater risks… under the Banking Support Program Creditors.”
Members of Congress stated that “lack of information sharing between governments” hindered decision-making and allowed Greenseal to obtain taxpayer-funded plans.
They also stated that Greenhill may have violated the loan rules under the Coronavirus Business Interruption Loan Scheme by providing a £350 million loan to the Gupta Family Group (GFG) alliance.
It was revealed that when the rules stipulated that each organization of the company could only receive a maximum of 50 million pounds, seven loans of 50 million pounds were given to different GFG entities.
The harsh report stated that the government’s failure to effectively share intelligence on companies seeking support from it (including Greensill) puts “taxpayers’ money at greater risk”.
It also stated that the government and British commercial banks have struck the wrong balance between making quick decisions and protecting the interests of taxpayers when launching various loan programs.
During the pandemic, the Ministry of Finance initiated multiple loan programs, underwritten billions of dollars, and promised to pay 80% to 100% of outstanding loans.
This means that when the pandemic and blockade first strikes, there will be fewer inspections of lending companies to speed up the process.
The committee stated that the bank must clarify “how to better balance delivery speed and value for money in the future, and what trade-offs it is prepared to accept”.
But the most severe criticism is the bank’s supervision of Greensail. Members of Congress called it “seriously inadequate” and warned that the boss relied too much on the work of others when certifying Greensail.
It added: “The bank did not have enough curiosity to determine where the funds lent through programs including Greensail would ultimately go.”
British Commercial Bank stated: “The National Audit Office concluded in July 2021 that the British Commercial Bank appropriately applied its established procedures when accrediting Greensill Capital (UK) Limited as a lender under the Covid-19 Business Support Program. Simplified version.
“Between March 2020 and March 2021, the British Commercial Bank approved 116 CBILS lenders, 27 CLBILS (Coronavirus Large Business Interruption Program) lenders, and 28 BBLS (Rebound Bank Loan Program) lenders. More than 1.6 million companies provide necessary financing channels.
“The less streamlined certification process will mean fewer certified lenders, and fewer companies will receive the emergency funds needed during the pandemic.
“The National Audit Office also found that the bank’s post-approval supervision and audit process quickly uncovered potential problems, just as they were originally designed.
“The bank’s investigation into Greensill Capital’s possible violation of CLBILS program rules is ongoing.”
A government spokesperson said: “The government did not participate in the decision to certify Greensail. The decision was made independently by the British Commercial Bank in accordance with its usual procedures.”
