Twenty-Sixth Report - Lessons from Greensill Capital: accreditation to business support schemes
Select Committee
Public Accounts Committee
HC 169
20 November 2021
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Twenty Sixth report from Session 2021-22 · published 21 Jan 2022
Recommendations & Conclusions
6 results
1
Conclusion
Acknowledged
On the basis of a report by the Comptroller and Auditor General, we took evidence...
Conclusion
On the basis of a report by the Comptroller and Auditor General, we took evidence from HM Treasury (the Treasury), the Department for Business, Energy & Industrial Strategy (the Department), and the British Business Bank (the Bank) about the involvement …
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Government Response Summary
The government provides a detailed overview of the COVID-19 business support schemes and Greensill's involvement, acknowledging the context for the Committee's report.
HM Treasury
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11
Conclusion
Acknowledged
The NAO found that the Bank treated Greensill’s application like other similar applicants, but that...
Conclusion
The NAO found that the Bank treated Greensill’s application like other similar applicants, but that the Department was particularly interested in Greensill’s accreditation. The Bank applied the same accreditation and due diligence process to Greensill as it did to the …
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Government Response Summary
The government acknowledges the committee's point and is updating the Shareholder Relationship Framework Document, as part of which it will consider changes regarding operational independence and departmental correspondence with the Bank. It will inform the Committee of the outcome of its considerations.
HM Treasury
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12
Conclusion
Acknowledged
The Department told us that it had requested updates on when a decision would be...
Conclusion
The Department told us that it had requested updates on when a decision would be made about accrediting Greensill so that it could decide whether it needed to create a “separate bespoke solution … [if] the process was ultimately going …
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Government Response Summary
The government acknowledges the committee's point and is updating the Shareholder Relationship Framework Document, as part of which it will consider changes regarding operational independence and departmental correspondence with the Bank. It will inform the Committee of the outcome of its considerations.
HM Treasury
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18
Conclusion
Acknowledged
Greensill lent a total of £418.5 million under the government’s COVID-19 business support schemes between...
Conclusion
Greensill lent a total of £418.5 million under the government’s COVID-19 business support schemes between July and October 2020. Of this, Greensill lent £400 million under CLBILS, the maximum amount it was authorised to lend, through eight loans of £50 …
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Government Response Summary
The government acknowledges the committee's finding by reiterating the total amounts Greensill lent under CLBILS and CBILS.
HM Treasury
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19
Conclusion
Acknowledged
On 12 October 2020, the Bank launched an investigation into Greensill’s compliance with the CLBILS...
Conclusion
On 12 October 2020, the Bank launched an investigation into Greensill’s compliance with the CLBILS scheme rules. This was 10 days after the Bank first noticed that Greensill had made six CLBILS loans on 30 September to companies associated with …
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Government Response Summary
The government confirms that the Bank launched an investigation in October 2020 into Greensill's compliance with CLBILS rules due to concerns over £350 million lent to GFG Alliance companies, which appeared to contravene the £50 million group lending cap.
HM Treasury
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20
Conclusion
Acknowledged
The Bank told us that it had acted immediately to protect the taxpayers’ position by...
Conclusion
The Bank told us that it had acted immediately to protect the taxpayers’ position by preventing Greensill from making any further loans under the schemes.56 The Bank engaged Ernst & Young (EY) between October 2020 and March 2021 to examine …
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Government Response Summary
The government acknowledges the Bank's actions, stating the loan guarantees remain suspended during the ongoing investigation and outlining the potential maximum liability if the guarantee is reinstated.
HM Treasury
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