Labour has called on Kemi Badenoch to clarify whether she leveraged her position as a government minister to shield Lord David Cameron from scrutiny.
The government has formally written to the Conservative leader, demanding an explanation regarding allegations that she used her role as Business Secretary to protect the former prime minister during a significant lobbying scandal.
Reports from The Guardian suggest that Mrs Badenoch stands accused by Australian financier Lex Greensill of restructuring an inquiry into his business activities "for political ends".
Lord Cameron served as an adviser to Greensill Capital, the firm founded by Mr Greensill which has since collapsed, prior to his recent return to government as Foreign Secretary under Rishi Sunak.
The Conservative peer was reportedly paid millions for his advisory role, an assertion he has denied.
Lord Cameron previously faced questions about his relationship with Mr Greensill upon rejoining the government, particularly given that Mr Greensill was granted an office in Downing Street during Lord Cameron's 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 had 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.”
Lord Cameron’s office declined to comment. The Conservative Party was contacted for comment.
