Lex Greensill offered ‘entire portfolio’ of products to Australia

Lex Greensill has revealed details of his offer to the Australian government in 2020, while calling for scrutiny of the insurers that pulled the plug on his former empire.

Lex Greensill, chief executive officer of Greensill Capital, centre, gives evidence to a UK Treasury Select Committee during a hearing into the collapse of his company earlier this year. PIcture: Bloomberg

Fallen supply chain financing boss Lex Greensill has detailed that he sought to offer his company’s “entire portfolio of products” to the Australian government in a series of meetings early last year.

In response to a list of questions on notice from a parliamentary committee, the ex-head of global supply chain financier Greensill deflected several questions to the liquidators of his companies.

However, Mr Greensill called on the committee to investigate his company’s former insurers.

Mr Greensill said the approach by Greensill Capital to the Australian government was aimed at a similar product to that offered to the British government.

“The Greensill Group’s approach to working capital finance offered demonstrable savings compared to traditional products in the market,” he said. “The UK Government Pharmacy Early Payment Scheme – that resulted in savings to the British taxpayer of £100m per annum – is one example of this in the public sector.”

The approach to the Australian government last year followed a meeting between Mr Greensill and Scott Morrison in October 2019.

Mr Greensill also sent a Whats­App message intended for the Prime Minister. However, the message was not delivered due to a wrong number.

The message reportedly lavished praise on Mr Morrison, including name-dropping former British prime minister David Cameron.

Mr Cameron had been signed up as a paid adviser to Greensill.

Former British prime minister David Cameron. Picture: Getty Images

Former Australian foreign minister Julie Bishop was also a paid adviser to Greensill, earning almost $800,000 a year for the role.

Mr Greensill also tried to pitch his wages-on-demand offering to former finance minister Mathias Cormann in a meeting arranged by Ms Bishop.

The response comes after Mr Greensill was sent questions at the start of the month in the wake of exploratory hearings into supply chain finance that saw industry figures question Greensill’s business model.

Mr Greensill did not appear ­before the recent parliamentary hearings into supply chain ­finance.

In his response, Mr Greensill calls for the committee to scrutinise the decisions by his company’s insurers that saw “the removal of a vital line of trade credit insurance”.

“I believe it is important for this committee to note, however, that the removal of trade credit insurance in times of global economic stress – when it is needed most – is not uncommon and warrants closer scrutiny by regulators,” he said.

The committee pressed Mr Greensill about the timing of filings with the corporate regulator filed on March 5 in which seven of the company’s nine board directors, including his brother Peter Greensill resigned. The committee asked Mr Greensill to clarify when the resignations were tendered any what changes were made to the Greensill Capital Board.

“Greensill Capital Pty Ltd is now in liquidation, and I no longer have access to the company records. Consequently, this information would need to be requested from the liquidator of Greensill Capital Pty Ltd,” he said.

“It is, however, my recollection and I am informed that all notifications of resignations relating to Greensill Capital Pty Ltd were filed within the required statutory time frames.”

Originally published as Lex Greensill offered ‘entire portfolio’ of products to Australia