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Cameron provided Greensill’s services to a German government official

Cameron provided Greensill’s services to a German government official

David Cameron provided services to Greensill Capital, a supply chain financing group, to a senior German government official as the investigation into the German banking system progressed.

Cameron is in the middle of a lobby scandal In Greensill Capital, whose German subsidiary Greensill Bank went bankrupt last month.

A spokesman for the former UK prime minister told the Financial Times: “David Cameron made a virtual call with the German ambassador last November to discuss the inclusion of Earnd in the German civil service with senior Greensill officials.”

It is a subsidiary of Earnd Greensill, which allowed employees to pay their salaries in installments.

According to three friends who knew the subject, Cameron sought a meeting last year with German Deputy Finance Minister Jörg Kukies. Kukies, a Social Democrat and former banker at Goldman Sachs, is in charge of financial market policy and European policy in Berlin. People said Kukies refused to attend the meeting.

However, a Cameron spokesman said he had requested a meeting and said: “During [the embassy] called, the German ambassador offered the Greensillen group a meeting with German Deputy Finance Minister Jörg Kukies. That meeting did not happen and David Cameron had no role in the process of suggesting or organizing it. “

Last November, at the embassy’s call, German bank guard BaFin entered the Greensillen bank branch after conducting the probe.

It is under the management of the bank criminal investigation after German regulators began testing last year because of their concerns exposure Sanjeev Gupta to the business of the British steel magnate.

Documents on Greensill released by the German finance ministry last month show that BaFin began “exchanges with foreign supervisory authorities” in January 2020, following a press briefing on “the trade relationship between Greensill and the Gupta Group.”

In the summer, the German regulator set up a “Greensill working group” to receive special advice on how to prepare a special audit of the bank after receiving “various reports of fraud” around “false invoices”.

This probe eventually raised concerns about the level that Greensill Bank could have with Gupta metal tycoon-related companies, which were lending billions of euros by lenders. FT previously reported that KPMG, which began the audit in September, also made no effort to verify some of the bills that underpinned these funding arrangements.

Jörg Kukies, German Deputy Minister of Finance © Giulio Napolitano / Bloomberg

Cameron started working as a paid consultant for the bank’s parent company (Greensill Capital) in 2018, and at one point was given share options that could be worth tens of millions of pounds.

He made his own first public statement Greensill said last weekend, stating that “he had no role in decisions to extend the credit or under what conditions that credit was extended.” He said the value of his stock options, which are now worthless after the company’s downfall, is “not even the amount speculated in the press,” but did not provide specific data.

Kukies and the German Ministry of Finance declined to comment. Greensill Capital did not immediately respond to requests for comment. Greensill’s administrator, Grant Thornton, declined to comment. The German Foreign Ministry did not immediately respond to the request for comment.

Cameron’s relationship with German officials has not been reported before and is likely to add to the growing scrutiny of his conduct on the former prime minister’s Greensill affair.

Jens Zimmermann, Social Democrat MP for Berlin, on the Bundestag committee the fraud fell on the German payment company Wirecard, said there were parallels “between the Wirecard and Greensill scandals.”

In both cases the balances appear to have been manipulated and “the massive use of former politicians as open doors is also evident,” said Zimmermann, vice-chairman of the German-British Parliamentary Friendship Group in the Bundestag.

Kukies is facing criticism from members of his coalition and the opposition for visiting Wirecard’s then-CEO Markus Braun at the company’s Munich headquarters. The visit was raised by the Financial Times after allegations of fraud against Wirecard led to its special accounting audit.

Jens Zimmermann, Social Democrat MP and member of the Wirecard research committee © Liesa Johannssen-Koppitz / Bloomberg

FT first revealed last month Cameron pressured the UK government to increase access to state-backed emergency Covid-19 loan schemes by Greensill Capital, a few months before the financial company collapsed and left the taxpayer facing potential losses.

Cameron must now be called to testify Various consultations in the UK Parliament Greensill got into the scandal.

BaFin could face up to three years in prison under German law for allegedly manipulating a criminal balance sheet against management of Greensill Bank.

Additional report by Guy Chazan in Berlin

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