Investigations into Liberty Steel, the metalworks firm at the center of a global crisis, have taken another hit with news that its operations in Romania are under probe for embezzlement and tax evasion. Sanjeev Gupta's company has been facing numerous challenges since it lost control of key assets last year.
According to Romanian authorities, they carried out raids on seven homes and Liberty Steel's registered office as part of a broader investigation into the company's financial dealings. The prosecutor's office claimed that persons with management positions within the company had embezzled funds by transferring money through affiliated entities registered in other jurisdictions.
The allegations center around a €137m (£121m) sale of CO2 certificates to Gazprom, Russia's state-owned gas company. These certificates are required by EU regulations for heavy polluters such as steelworks. The transactions involved the transfer of money from these sales into accounts linked to Liberty Steel via a company in Singapore.
It is alleged that funds intended for industrial investments were diverted to cover payments to affiliated legal entities without an operational justification. Romania's authorities have reportedly found significant financial irregularities, including fictitious loan contracts and unverified purchases of goods or services.
GFG Alliance has vehemently defended the firm, stating it will "vigorously defend itself against the unfounded allegations directed at the company." The statement claims that Galați, Liberty Steel's Romanian operation, received substantial financial support from GFG Alliance and maintains that all transactions under review were conducted for its benefit and complied with applicable laws.
While the investigation continues to unfold, this latest development adds to the mounting difficulties faced by Sanjeev Gupta. His once-thriving empire has crumbled since the collapse of Greensill Capital in 2021, and his business interests have been hit hard. With another country's authorities now taking a closer look at Liberty Steel's dealings, it remains to be seen how these allegations will impact the company's future prospects.
According to Romanian authorities, they carried out raids on seven homes and Liberty Steel's registered office as part of a broader investigation into the company's financial dealings. The prosecutor's office claimed that persons with management positions within the company had embezzled funds by transferring money through affiliated entities registered in other jurisdictions.
The allegations center around a €137m (£121m) sale of CO2 certificates to Gazprom, Russia's state-owned gas company. These certificates are required by EU regulations for heavy polluters such as steelworks. The transactions involved the transfer of money from these sales into accounts linked to Liberty Steel via a company in Singapore.
It is alleged that funds intended for industrial investments were diverted to cover payments to affiliated legal entities without an operational justification. Romania's authorities have reportedly found significant financial irregularities, including fictitious loan contracts and unverified purchases of goods or services.
GFG Alliance has vehemently defended the firm, stating it will "vigorously defend itself against the unfounded allegations directed at the company." The statement claims that Galați, Liberty Steel's Romanian operation, received substantial financial support from GFG Alliance and maintains that all transactions under review were conducted for its benefit and complied with applicable laws.
While the investigation continues to unfold, this latest development adds to the mounting difficulties faced by Sanjeev Gupta. His once-thriving empire has crumbled since the collapse of Greensill Capital in 2021, and his business interests have been hit hard. With another country's authorities now taking a closer look at Liberty Steel's dealings, it remains to be seen how these allegations will impact the company's future prospects.
... I mean, I get it, corruption and embezzlement are serious issues, but can't we all just breathe for a sec? 
I'm more worried about the people affected by Liberty Steel's financial struggles than the specifics of these allegations. Have you guys seen the environmental impact of the steel industry lately? It's like, super concerning... 
Anyway, back to this: I think it's time we started thinking about corporate accountability and how we can hold companies like Liberty Steel responsible for their actions, not just in Romania but globally 
just thinking about all this embezzlement stuff is giving me headaches... Like, can't people just follow the rules and do the right thing? 
It's not like it's rocket science, you know? But I guess when there's money involved, everyone gets greedy 
. And now Liberty Steel's Romanian operation is in trouble too... It's just another example of how these big corporations can get away with so much stuff before someone finally catches them 
.
. I mean, come on Sanjeev, how hard is it to keep track of your money? 
. This whole thing is just a mess, I'm not sure what the future holds for Liberty Steel or its owner 
. This Romanian thing? Yeah, that's a whole other can of worms that needs to be opened and checked 
. So many transactions, so much money... how do we even begin to figure out what's real and what's not here? 
Anyway, I guess this is just another reminder that in business, you've gotta stay on top of your game and keep those books balanced 
or else.
- who knew these CO2 certificates could be so dirty? 
I'm not buying GFG Alliance's "vigorously defend" statement either, sounds like they're trying to sweep this under the rug 
. Time will tell how this investigation plays out, but one thing's for sure: Liberty Steel is in a world of trouble 
#LibertySteelProblems #GazpromGate #CorruptionInvestigations
I mean, I feel bad for him, he's been through so much already, but come on, embezzlement and tax evasion? That's just not something you recover from easily. The fact that they've found fictitious loan contracts and unverified purchases of goods or services is just red flag after red flag... 
It's like he's digging himself into a hole faster than he can climb out of it.
And those CO2 certificates, what a racket! 
The fact that funds were diverted through shell companies in Singapore is just plain shady 
). Sanjeev Gupta needs to come clean about what's going on and how much he knows... this investigation is only going to get more intense 
think we've heard enough about liberty steel's shady dealings already... all these raids and investigations are just a hassle for sanjeev gupta's empire 
that's just crazy! i feel bad for sanjeev gupta, he was trying to build his business empire but it looks like everything is falling apart. the fact that funds were diverted from industrial investments to cover payments to affiliated legal entities without any operational justification is just so shady 
. The sheer scale of alleged financial irregularities is staggering - €137m in dubious transactions with Gazprom and a web of shell companies in Singapore? It's clear that someone at the top was keen to line their own pockets, rather than investing in industrial growth for the benefit of all parties involved 
.