Liberty Steel boss Sanjeev Gupta has been criticised in a report by MPs looking into the crisis that engulfed the company, as well as the future of the wider steel sector.
It claimed that the use by Mr Gupta – once known as the “saviour of steel” – of “high risk financial funding practices” was undermining the long-term viability of the steel industry in the UK.
The report by the Commons business, energy and industrial strategy select committee also called into question the “unusual and… unacceptable” way in which he structured his business empire.
It found that, in companies belonging to Mr Gupta’s GFG Alliance business empire, there was “no formal oversight or accountability” of the decisions taken by the businessman.
The MPs recommended that the government should reflect on the risks posed to UK industries “by such unusual corporate structures” and consider reforming company laws.
They also said they would “welcome the Insolvency Service considering whether… Sanjeev Gupta may have acted in breach of his fiduciary duties as a company director”.
Labour MP Darren Jones, chairman of the select committee, said that “systemic issues” at the heart of Mr Gupta’s business empire “highlighted the vulnerabilities of Liberty Steel and its place in the wider steel sector in the UK”.
“We met with hard-working and dedicated workers at Liberty Steel and want to ensure that the UK steel sector is able to continue to support their jobs,” he said.
“However, the evidence we heard during our inquiry has highlighted serious problems with high-risk financial practices, weaknesses in audit, and about inadequate accountability and corporate governance arrangements within GFG Alliance.
“Sanjeev Gupta must urgently fix these problems if he is…
Source : skynews
