Scottish Government refusing to say whether Gupta firms in breach of legal agreements

Scottish Liberal Democrat economy spokesperson Willie Rennie has today piled pressure on the Scottish Government after a minister repeatedly refused to say whether recipients of millions of pounds of taxpayer-backed guarantees who have repeatedly failed to file accounts were in breach of their deals with the government.

It was revealed in October that the CEO of Liberty House Group, Sanjeev Gupta is currently facing prosecution over his alleged failure to file accounts for more than 70 companies. This follows years of media reporting that accounts for both the Dalzell steelworks – acquired by Mr Gupta from Tata Steel in a controversial back-to-back deal facilitated by the Scottish Government - and for the Lochaber aluminium plant - also owned by Mr Gupta and owing £7m in loans to Scottish taxpayers - have gone unfiled.

Mr Rennie has filed a series of parliamentary questions seeking to uncover whether a commitment to file accounts was included in either the legal agreements or loan conditions agreed with Mr Gupta and whether any terms of these agreements have been broken by the failure to file accounts. However responding for the Scottish Government, minister for employment and investment Tom Arthur repeatedly refused to reveal whether such terms were included or whether contractual terms had been breached.

Mr Rennie said:

“For years I have pursued the Scottish Government for basic answers about what happens if Sanjeev Gupta’s business empire collapses and whether taxpayers will be stuck with the bill.

“Between the unfiled accounts and furloughed staff, assorted serious fraud office probes and prosecutions, Mr Gupta seems to have no shortage of problems.

“What puzzles me is why the Scottish Government seem so keen to cover up for him? If a requirement to file accounts was not part of their deals with Mr Gupta they should simply say so. If there was and the firms are now in breach of that agreement then ministers should set out what they are doing to safeguard taxpayers.

“If we are to preserve Scotland’s last remaining steel mill, as well as a Highland business with significant potential then ministers will need to be far more open about their own dubious dealings with Sanjeev Gupta and his business empire.”