The corporation, which had been seeking to build Britain’s first new deep mine in 40 years, was eventually purchased by Anglo-American in January in a step that saw many small shareholders’ savings and investments wiped out.
A spokesperson for Jenrick said on Friday that Ofer was a “family friend” and that the minister had notified officials, who advised him to step back from the decision on Sirius.
Shadow housing and communities secretary, Steve Reed said: “Mr Jenrick must now tell us whether he declared his friendship with Mr Ofer to officials prior to the meeting, why he did not immediately step back from making the decisions and what further discussions he had with Mr Ofer.”
“It’s time for some honesty,” Mr Reed continued. “Mr Jenrick must come to the House of Commons to explain exactly what he’s been up to because the public are now worried that a new era of Tory sleaze has begun in earnest.”
Mr Jenrick is also facing intense scrutiny over allegations in the Sunday Times that he overrode senior civil servants’ advice not to grant planning permission for a £1bn housing project backed by Conservative donor Richard Desmond.
Mr Jenrick was reported to have been warned that granting permission to the Westferry Printworks project would be in violation of planning rules and that the project was likely to face judicial review.
The housing secretary gave the go-ahead to the scheme the day before a new tax came into force - which would have cost Mr Desmond’s developers between £30 and £50 million.
The housing secretary had previously sat next to the Daily Star and Daily Express owner at a Conservative fundraiser and had watched a promotional video of the Isle of Dogs-based project on Mr Desmond’s phone.
Mr Reed said that: “These explosive revelations show Mr Jenrick has new and very serious questions to answer.”
The Ministry of Housing and Local Government has been contacted for comment.
