Kwasi Kwarteng: all options on table to save Liberty Steel
March 30, 2021, 10:10 am

Kwasi Kwarteng: all options on table to save Liberty Steel

Liberty Steel’s mill in Newport

Business secretary also says David Cameron did nothing wrong in his work on behalf of Greensill Capital

All options remain on the table for Liberty Steel, the business secretary has said, insisting the industry still has a future in the UK.

Concerns for the future of Liberty Steel and its 3,000 UK workers – with a further 10,000 supply chain jobs dependent on it – have grown after the government rejected its parent company’s plea for a £170m rescue loan.

Speaking on BBC Radio 4’s Today programme on Tuesday, Kwasi Kwarteng described Liberty Steel as a “really important national asset” but said it was important to distinguish between the steel business and its parent company, the Gupta Family Group. It is part of the business empire built up by the industrialist Sanjeev Gupta.

Kwarteng said: “We are custodians of taxpayers’ money, and there were concerns over the very opaque structure of the GFG Group and we feel that if we gave the money, there is no guarantee that that money would stay in the UK and protect British jobs. It’s a multinational enterprise.”

He did not rule out the possibility of the government taking Liberty Steel into public ownership. “All options are on the table. We think the steel industry has a future in the UK. Only two weeks ago my department published an industrial decarbonisation strategy. We want to see clean steel … of the kind Liberty Steel makes.”

Gupta has sought extra funding for the business in the three weeks since the collapse of Liberty Steel’s key financial backer, Greensill Capital.

Government officials have readied a plan to step in to keep Liberty Steel in operation if it is forced to enter administration, after writing to GFG Alliance rejecting the request for money to cover its need for cash to run its operations. Among the options under consideration is a similar strategy as that used to save British Steel in May 2019, when an official receiver, a government employee, took control of the company while it sought a buyer.

Kwarteng suggested the former prime minister David Cameron had done nothing wrong in his work on behalf of Greensill Capital.

The business secretary said there had been a two-year gap between Cameron leaving office and being hired by Greensill. “There is no suggestion that he can’t pursue another career after leaving politics,” he added.

He sidestepped a question on whether lobbying rules ought to be reviewed, saying: “there is a great deal of transparency in the system”. He said a review was a matter for Lord Evans, who chairs the committee on standards in public life.

source: Julia Kollewe

Levant

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.