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Britain's financial corruption threatens French steel mills

Britain’s financial corruption threatens French steel mills

A fraud investigation has been opened in the UK against the steel group GFG Alliance, which owns the Ascoval and Liberty Rail Hyenge Steelworks in France. The group’s lack of transparency and its relationship with the bankrupt financial institution Greens have been at the center of controversy.

Last March, theItsThe French government was leaning on the bed of French steelworkers like Ascoval or the Liberty Rail Hyang, when their parent company, the GFG Alliance, saw its financial resources dry up. But problems are growing around the family steel group owned by businessman Sanjeev Gupta. The Office of Serious Fraud, the British National Attorney’s Office, has now opened an investigation. “Fraud, fraudulent trade and money launderingÔÇťAgainst multinationals.

The problem began at Greens, a UK financial institution that is a key financial partner of the GFG alliance. Bankruptcy at the beginning of the year. Its own partners no longer have confidence in its business model, and it relied heavily on the company of its main client, Sanjeev Gupta, at risk. Buffin, the German financial watchdog, has begun investigating Greensil’s practices, including loans provided by the company to the GFG Alliance.

Cut the credit tapes

According to the steelmaker, the bankruptcy of Greensil immediately reduced the debt pipeline. He had to find financial resources to replace them so that he would not have to leave the business. In France, the Group is through its subsidiaries Liberty Steel, Alvans for Steel and Aluminum. In early March, Minister Bruno Le MyreItsEconomics and finance wanted to guarantee the group’s approximately 2,000 French employeesItsThe government will be behind the employees and will know how to find the funding needed to maintain the operation.

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Announcement of the opening of the investigation by the Serious Fraud Office on May 14 “Conducting business of companies in the Gupta Family Group Alliance, including financial arrangements with Capital UK in Greens“Everything is regrettable. The financial partners who negotiated the GFG alliance to move to the Greens have already begun to withdraw.

As for the French sites, the GFG Alliance group announced a few days before announcing the SFO investigation that it is still looking for new funding, but has not ruled out a possible sale. The French unions in the Liberty Group have said they want a buyer’s solution from the AFP.

Arnaud Tomas, @ ADumas5