Kemi Badenoch must say whether she used her position as a government minister to shield Lord David Cameron from scrutiny, Labour has said.
The Labour Party has written to the Conservative leader asking whether she used her position as business secretary in the Tory government to protect former prime minister Lord Cameron during a lobbying scandal.
The Guardian newspaper reported Mrs Badenoch has been accused by the Australian financier Lex Greensill of restructuring an inquiry into his activities “for political ends”.
Lord Cameron acted as an adviser to Greensill Capital, the now collapsed firm set up by Mr Greensill, before his return to government as foreign secretary under Rishi Sunak.
The Conservative peer is reported to have been paid millions to act as an adviser to the company, but he has denied this was the case.
Lord Cameron faced questions at the time of his return to government about his relationship with Mr Greensill, who was given a Downing Street office under his premiership.
Mr Greensill is currently facing the prospect of being disqualified from managing a UK company for 12 years, after the British wing of his group of companies entered administration in March 2021.
In a letter to Peter Kyle, the current Business Secretary, contesting the disqualification, Mr Greensill is reported to have suggested an investigation by the Insolvency Service into his business was flawed because it did not include Lord Cameron’s involvement.
This meant the case against him should be dropped, The Guardian reported.
An extract of Mr Greensill’s letter published by the newspaper said: “I honestly believe on the basis of the facts that Mrs Badenoch and the previous Conservative government interfered in this case for political ends.
“Their motive was to deflect from allegations that could implicate Lord Cameron in any suggestion of wrongdoing.”
In a letter to the Conservative leader, Labour Party chairwoman Anna Turley said the “serious accusation leaves you with questions to answer”.
She asked if Mrs Badenoch or anyone else intervened in the Insolvency Service case and called for Lord Cameron to be omitted from the scope of its probe.
Ms Turley added: “You have repeatedly said the Conservative Party is under new management with your leadership.
“I hope that you will therefore urgently clarify the nature and extent of your involvement in changing the scope of an insolvency investigation in a way that benefited a Conservative cabinet minister.”
Conservative leader Mrs Badenoch said she had “no idea” what Mr Greensill was talking about.
She also told broadcasters: “I didn’t speak to David Cameron during that time until he became foreign secretary, and certainly never about that.
“I think he’s got some misinformation. That’s a total nonsense story.”
Lord Cameron’s office declined to comment.
