Sanjeev Gupta’s Liberty Steel offices targeted in Serious Fraud Office probe
The UK offices of Whyalla steelworks’ owner Sanjeev Gupta have been targeted as part of a police investigation into alleged money laundering. GFG Alliance denies any wrongdoing.
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A major crime squad has visited the offices of Sanjeev Gupta’s Liberty Steel as part of a probe into alleged fraud of GFG Alliance and its failed financier, The Advertiser understands.
The UK based Press Association reported on activity in recent days at the offices of Mr Gupta’s business and financier Greensill Capital.
GFG Alliance told The Advertiser certain companies within GFG Alliance were served with notices requesting documents as part of an investigation.
It comes after the UK Serious Fraud Office launched an investigation into alleged fraud and money laundering by GFG, “including its financing arrangements with Greensill Capital UK LTD”.
The bombshell investigation triggered confusion over a $430m rescue deal for the Whyalla steelworks funded by Mr Gupta’s Liberty Primary Metals Australia.
Greensill, a major lender to Mr Gupta’s business, collapsed in March 2021.
In a statement on Thursday morning, a GFG Alliance spokesman said the investigations by the Serious Fraud Office had moved to the next stage, with the issuing a “Section 2 Notices for information”.
“This included a low-key visit by SFO officials which was an expected step in the process,” the spokesman said.
“We continue to deny any suggestion of wrongdoing and we are co-operating fully with the inquiries to help ensure a swift conclusion.
“The inquires only relate to some of our business in the UK and France, and do not relate to our Australian operations which continue to perform strongly.
“We continue to focus on operation safely and delivering our business plans.”
It is understood the investigation included looking at Greensill’s debt packaging of future invoicing of Mr Gupta’s companies.
GFG Alliance bought the Whyalla steelworks and iron ore operations out of administration in 2017, and the company has turned it around, saying it is now delivering strong profits.
GFG’s global operations ran into trouble early last year when its financier Greensill collapsed, forcing it to refinance more than $5bn in debt, including about $430m associated with its local arm, Liberty Primary Metals Australia.
A debt restructuring plan for the Australian operations was struck with Credit Suisse Asset management in October last year.
GFG said last month that it had more than doubled profits at its Australian steel manufacturing business Infrabuild and said production at its Whyalla steelworks up strongly.
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