Whitehall’s spending watchdog has launched an investigation into Greensill Capital’s involvement in government-backed COVID support schemes prior to the firm’s collapse.

The National Audit Office on Friday announced the latest Westminster inquiry into Greensill, which is at the centre of a lobbying row involving former prime minister David Cameron.

In June last year, the government-owned British Business Bank approved Greensill as a lender for the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

This allowed it to provide finance to mid-sized and larger UK businesses with a group turnover of more than £45m if they were disrupted by the pandemic.

But in March this year, Greensill filed for insolvency.

In recent weeks, Mr Cameron has faced a series of questions over his contacting of serving government ministers and officials on behalf of Greensill, who employed him after he left 10 Downing Street.

The controversy has also raised a series of questions about the role of Greensill’s founder, Lex Greensill, and his involvement in the government’s use of supply chain finance schemes.

Announcing their inquiry, the National Audit Office said: “This investigation will cover Greensill Capital’s involvement in the government’s COVID-19 support schemes, including the accreditation process, and any post-accreditation monitoring of Greensill Capital’s activities.”

Prime Minister Boris Johnson has already ordered a top lawyer to review the involvement of Greensill Capital and Mr Greensill in the development and use of supply chain finance in government.

Three separate committees of MPs have also launched inquiries into the activities of Greensill Capital.

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