Ministers urged to ‘come clean’ on Gupta support – Daily Business

Liberal Democrats economy spokesman Jamie Greene has urged the Scottish government to “come clean” on its dealings with steel magnate Sanjeev Gupta.

Ahead of an update from public finance minister Ivan McKee in the parliament today, secured by the LibDems, Mr Greene said SNP ministers have said little about the financial arrangements offered to Mr Gupta.

In 2016 he acquired the Dalzell Steelworks in a controversial deal facilitated by the Scottish Government backed by a £7million taxpayer-funded loan.

The SNP also helped Mr Gupta take over Lochaber aluminium smelter near Fort William by providing nearly £600m in loan guarantees.

Years of media reporting have suggested that the accounts for both have not been filed.

Last month, a judge found that the parent group of Gupta’s GFG Alliance has 15 entities in insolvency proceedings across nine jurisdictions.

Mr Greene said: “The SNP Government has never been upfront about its dealings with Sanjeev Gupta.

“Mr Gupta’s business operations in Scotland involve hundreds of Scottish workers and multi-million-pound taxpayer-backed loans. But whenever my party has raised the latest worrying development concerning the GFG Alliance with ministers, they insist everything is rosy.

“Not a single minister has ever been able to explain when the loans are likely to be paid back, whether Mr Gupta’s businesses are in breach of their deals with the government and what this could all mean for Scottish taxpayers.

“As deputy convener of the Scottish parliament’s public audit committee, I am regularly involved in scrutinising how the government is using public money.

“That task, however, is made no easier by minister after minister dodging basic questions about their relationship with Mr Gupta.  

“With Gupta’s business empire in the spotlight, it is time for the government to come clean with MSPs and the public about what discussions it has had with the GFG Alliance, whether taxpayers could be left picking up the pieces and, critically for how much.”

The LibDems raised the issue in parliament last week when public finance minister Ivan Mckee said:  “The Scottish Government are in regular contact with management at Alvance British Aluminum, Liberty Steel, Dalzell and the wider GFG Alliance.

“The Lochaber businesses are performing well, employing over 200 people, making significant contributions to both the local and Scottish economies.

“GFG remains committed to the future of the Dalzell plant and have firm plans to restart operations in the near future, after securing a contract for 40 kilotons of plate for maritime use.

“I will be providing a statement to parliament next week to set out further details on the Scottish assets and our discussions with GFG on their future.”

There has been talk of using steel produced at Dalzell to supply the warships being built in Scotland.