World

[UPDATED] UK prime minister Sunak fires Tory chair after tax probe

Inquiry finds ‘serious breach’ of ministerial rules by Nadhim Zahawi

Updated 3 years ago · Published on 29 Jan 2023 5:37PM

[UPDATED] UK prime minister Sunak fires Tory chair after tax probe
Conservative party chairman Nadhim Zahawi has faced extensive questions in Parliament and the media after it emerged he agreed to pay millions in a settlement with the tax department. – AFP pic, January 29, 2023

LONDON – British Prime Minister Rishi Sunak today fired Conservative party chairman Nadhim Zahawi after an inquiry into Zahawi’s tax affairs found a “serious breach” of ministerial rules, the government said.

“As a result, I have informed you of my decision to remove you from your position in His Majesty’s Government,” Sunak wrote in a publicly released letter to his Iraqi-born ally, following a scandal that cast doubt on the prime minister’s own judgement and vows of integrity.

The government also released the inquiry report by Sunak’s newly appointed independent ethics advisor, Laurie Magnus.

Magnus pulled no punches in finding that Zahawi effectively lied to successive Conservative leaders when he came under investigation by the UK’s tax authority, which led to the politician handing over a fine for late payment reportedly worth £5 million (RM26.27 million).

Zahawi gave shifting explanations in the affair, and initially tried to silence journalists and a tax consultant with threats of libel lawsuits.

Sunak’s decision to dismiss Zahawi, rather than invite him to resign with some saving of face, underlined the serious political stakes at play at a time when millions of Britons are struggling to pay the bills.

Sunak appointed Zahawi as Conservative party chairman, and minister without portfolio, when he entered 10 Downing Street in October, when he vowed to deliver “integrity, professionalism, and accountability at every level”.

Zahawi was previously in the cabinet under both Liz Truss and Boris Johnson – who appointed him as chancellor of the exchequer, in ultimate charge of the UK tax agency.

The opposition Labour party said Sunak should have fired Zahawi immediately when the allegations emerged in newspaper reports this month, rather than seeking to buy time by asking Magnus to investigate.

The scandal underlined that Sunak was a “weak” prime minister, senior Labour MP Bridget Phillipson told Sky News.

“The stench of sleaze just hangs around the Conservative party,” she said.

Sunak has faced questions himself about his family’s tax affairs after it emerged that his Indian wife Akshata Murty had for years enjoyed “non-domicile” status, which shielded her from paying UK taxes on her overseas income from her family’s Infosys business group.

And last week he apologised for receiving his second police fine, after he was filmed not wearing a seatbelt in the back seat of a moving car.

As chancellor himself under Johnson, Sunak was fined along with the then prime minister for attending an illegal workplace party during a Covid-19 lockdown.

The “partygate” scandal was one of several that brought down Johnson.

Sunak’s vows of integrity were in sharp contrast to that record, but he remains stalked by his predecessor’s dealings in government.

A separate probe is underway into reports that just before he was made chairman of the BBC by Johnson, former banker Richard Sharp was involved in securing a private credit line for up to £800,000 for the then-prime minister from a Canadian businessman. – AFP, January 29, 2023

Related News

Malaysia / 2y

Malaysians told to stay away from protest areas in UK

Malaysia / 2y

Malaysian students in UK recreate mixed rice experience in viral video

Malaysia / 2y

Minister’s visit to propel Malaysia, UK ties into new era

World / 2y

UK man wrongly interviewed live on air to sue BBC over lost earnings

World / 3y

British Museum sacks employee after items found missing

World / 3y

UK defence minister to step down at next cabinet reshuffle

Spotlight

Trump’s North Korea gamble deepens Asia’s doubts over US alliances

Malaysia

Rayer denies involvement in 'Maha Kali Red Rally', claims name and photo misused

Malaysia

E-Hailing driver charged with attempted murder after allegedly setting worker on fire

Business

Nation’s economic outlook strengthens as leading index signals continued growth

Malaysia

‘No parent wants her child to be remembered this way,’ says mother of 14-year-old Keziah

Malaysia

RM1.96m Penang land probe: Two ‘Datuks’ remain in custody

Business

K8 cargo: Businessman seeks clarification from MOF, Customs, Petronas

Malaysia

PH leaders hold talks as Melaka election plans take shape

Malaysia

Bersama rejects political alliances, vows to go solo in Melaka state election

You may be interested

World

Prabowo orders more troops, helicopters as Kalimantan fires worsen

World

AirAsia flight undergoes cleaning after passenger ‘incident’ before Shanghai landing

World

Series of explosions, fires hit three southern Thai provinces

World

Canada to hit US goods with dollar-for-dollar tariffs after trade talks collapse

World

Two police officers among seven killed in wrong-way crash on UK’s A66

World

Indonesia arrests 72 over forest fires as haze spreads to Malaysia

World

Israeli airstrikes kill two in Gaza as ceasefire holds under strain

World

US threatens Iran with ‘greatest financial offensive’