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The Australian government is being pressured to formulate a Gupta emergency plan


The Australian government is under intense pressure to explain what could happen if industrial supplier Sanjeev Gupta fails to raise emergency funds to save thousands of steelworks.

An announcement from the Serious Fraud Office in the UK on Friday that it has happened launched research into the GFG Alliance, The Gupta population, which is plagued by suspicion of fraud and money laundering, has raised fears among Australian blacksmiths who hope the rescue operation is imminent.

Australia’s largest exports of steel are metals in South Australia Why and a coal mine in Tahmoor.

Rex Patrick, a South Australian senator, said the findings of the SFO study “created a dark cloud for the group to access and save money”.

“Australia must not, in any case, see the demise of the dictatorship. It is about manufacturing, strengthening the country and the need for national security, ”he added.

The Gupta kingdom has been trying to raise new money since March when Greensill Capital, a major lender, has fallen out of favor.

Iron mill at Whyalla © J Marshall / Tribaleye / Alamy

A few hours after the SFO disclosed its findings, White Oak Global Advisors, a private business company based in San Francisco that negotiated to provide credit to steel workers at GFG in Australia and the UK, says it will no longer be able to continue the negotiations.

Then it seems that it is going back and forth in some words that it was left over from the negotiations for the rehabilitation of Australian steel. As the talks continued, people familiar with the matter said on Sunday White Oak declined to comment.

The GFG has denied the allegations and promised to “fully cooperate” with the SFO investigation.

Eddie Hughes, a former metalworker and now MP in South Australia, said while relying on the reliability of the Whyalla plant, it would not be inappropriate if governments and corporations did not put in place emergency measures to ensure Australian GFGs could continue if financial consensus did not go unchallenged. ahead.

He said it was important for various Australian GFG businesses, including Whyalla steelworks, the mining and Infrabuild mines, the manufacturing and smelting sector, to be divided and sold separately after the GFG collapse.

“The steel will not suffer if it is damaged and perhaps the government will help to prevent this from happening,” Hughes said.

Credit Suisse is demanding that Whyalla’s additions to the company reimburse the invoices, which Greensill had made as a bond and the Swiss bank sold to its customers.

The Australian government and the South Australian government, both led by the Liberal Party, have so far banned the Guptas’ actions.

“We do not dwell on speculation. I think there have been some ideas in the UK about promoting small businesses. But this is not what the South Australian government is considering, “Rob Lucas, South Africa’s Treasurer, told the Financial Times.

The government is reviewing the findings of the fraudulent investigation in the UK, he added.

A spokesman for the industrial minister said this was being monitored.

In the UK, where Gupta’s steel industry employs about 3,000 people, the British Community’s steelworks agency described the SFO’s investigation as “development-oriented” and urged it not to “disrupt all party views to protect our members’ jobs and protect key businesses.” awa “.


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