Rishi Sunak has ordered an investigation into Nadhim Zahawi as he resisted calls to sack the Tory party chairman over his tax dispute.
The prime minister asked new ethics adviser Sir Laurie Magnus on Monday to assess whether the cabinet minister breached the ministerial code with the HMRC settlement he made while he was chancellor.
Mr Sunak said he was launching an investigation because “clearly in this case there are questions that need answering”.
But Labour leader Sir Keir Starmer said: “He promised us, his first words, integrity and accountability.
“Well, if those words mean anything, the prime minister should sack him and sack him today and show some leadership.”
Scotland’s first minister, Nicola Sturgeon, has also said Mr Zahawi’s position is “untenable”.
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Earlier, a source close to the embattled Tory MP said he is “absolutely not going to resign” in the face of growing pressure over his settlement, estimated to be around £5m.
The government’s paymaster general, Jeremy Quin, told the Commons on Monday the process for the management of conflicts of interest, or potential conflicts is “clear and robust” as he admitted the PM has the ultimate say on appointments.
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But he added: “It is a responsibility of all ministers to ensure that no conflict arises or could be reasonably perceived to arise between their role and their interests, financial or otherwise.”
The tax expert who investigated Mr Zahawi has joined calls for him to go, telling Sky News there is “clear evidence” he has not been truthful about his affairs.
Dan Neidle, the Founder of Tax Policy Associates and a Labour member, pointed to comments made by Mr Zahawi to Kay Burley last summer, while the then-chancellor was running to be leader of his party.
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Rishi Sunak has asked his independent ethics adviser to investigate Nadhim Zahawi
Speaking to Kay Burley on Monday, Mr Neidle said that a filing disclosure from YouGov – the polling company Mr Zahawi co-founded – showed he “received £99,000 from Balshore Investments”, a company based in Gibraltar.
Mr Neidle said: “That’s not my supposition or a guess – it’s absolute fact.
But he added: “I lack the imagination to see it and if there isn’t one, I think he should resign.”
What we still don’t know about Zahawi’s tax dispute
Image: Nadhim Zahawi did not answer questions when he arrived at Conservative Party headquarters on Monday
Questions about Mr Zahawi’s tax affairs have continued, even after he released a statement to “address some of the confusion about my finances”.
On Saturday he admitted he paid what HMRC said “was due” after it “disagreed about the exact allocation” of shares in YouGov.
But he did not disclose the size of the settlement – reported to be an estimated £4.8m including a 30% penalty – or whether he paid a fine.
Sky News understands he did pay a fine, and Mr Neidle said the use of the word “careless” confirms this.
He said “careless means something specific” in tax terms – “that you didn’t behave in a reasonable way”.
“A reasonable way is you instruct decent tax advisers. You tell them the truth, you follow their advice, you check your final tax returns as best you can.”
It is also not clear how much money Mr Zahawi made before settling the dispute.
Mr Neidle said: “I think he would have received about £27m and not paid tax on it until eventually he was forced to because it was being reported. He didn’t admit it, denied it, threatened to sue people and went to HMRC to quietly settle it.”
Mr Zahawi did not answer questions from reporters as he headed into the Conservative Party headquarters in Westminster earlier on Monday.
Syria has carried out pre-emptive operations targeting Islamic State cells – arresting 71 people during 61 raids.
Explosives and weapons were seized, with the interior ministry revealing they were working on “precise” intelligence information.
“Many” of those detained were wanted criminals, with forces obtaining evidence that linked them to terrorist activities.
A statement added that the operation was part of “ongoing national efforts to combat terrorism and confront plots targeting the country’s security and citizens”.
The raids come as Syrian President Ahmed al Sharaa travels to Washington for a meeting with Donald Trump, where he will join a coalition against IS.
Meanwhile, the US is preparing to establish a military presence in Damascus to enable a security pact that is being brokered between Syria and Israel.
According to the Syrian Arab News Agency, officials intercepted information that suggested Islamic State was planning to launch new attacks.
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Interior ministry spokesman Nour al Din al Baba told al Ekhbariya: “The current major threat lies in IS’ attempts to reconstitute itself and recruit new members, particularly among the youth.”
Since then, al Sharaa’s transitional administration has been attempting to restore security, introduce economic reforms, and cooperate with international partners.
On Friday, the UK and US removed sanctions against al Sharaa – following in the footsteps of the UN Security Council.
The State Department said this was “in recognition of the progress demonstrated by the Syrian leadership”, including work to counter narcotics and eliminate chemical weapons.
Al Sharaa had faced a travel ban, asset freeze and an arms embargo for well over a decade because he was previously affiliated with al Qaeda.
Israeli troops in Gaza have received the remains of another hostage.
They have now been taken to the National Institute for Forensic Medicine to be examined.
If it is confirmed that they belong to a hostage, this would mean there are five bodies left to be returned under the terms of a ceasefire that began on 10 October.
Israel has also released the bodies of 285 Palestinians – but this identification process is harder because DNA labs are not allowed in Gaza.
Last night’s transfer is a sign of progress in the fragile truce, but some of the remains handed over in recent weeks have not belonged to any of the missing hostages.
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October: Heavy machinery enters Gaza to clear rubble
At times, Israel has accused Hamas of violating the agreement – however, US President Donald Trump has previously acknowledged conditions on the ground in Gaza are difficult.
Meanwhile, UN officials have warned the levels of humanitarian aid flowing into the territory fall well short of what Palestinians require.
Deputy spokesperson Farhan Haqq said more than 200,000 metric tons of aid is positioned to move in – but only 37,000 tons has arrived so far.
Earlier on Friday, hundreds of mourners attended the military funeral of an Israeli-American soldier whose body was returned on Sunday.
Image: Omer Neutra was an Israeli-American soldier. Pic: AP
Captain Omer Neutra was 21 when he was killed by Hamas militants who then took his body into Gaza following the October 7th attacks.
Admiral Brad Cooper, who heads up US Central Command, said during the service: “He is the son of two nations.
“He embodied the best of both the United States and Israel. Uniquely, he has firmly cemented his place in history as the hero of two countries.”
His mother Orna addressed her son’s coffin – and said: “We are all left with the vast space between who you were to us and to the world in your life and what you were yet to become. And with the mission to fill that gap with the light and goodness that you are.”
Image: IDF troops carry the coffin of hostage Omer Neutra. Pic: AP
In other developments, Turkish prosecutors have issued arrest warrants for Prime Minister Benjamin Netanyahu and 36 other Israeli officials on charges of carrying out “genocide” in Gaza.
They have been accused of crimes against humanity – but the move is highly symbolic since these officials were unlikely to enter Turkey.
Foreign minister Gideon Saar dismissed the warrants, and said: “Israel firmly rejects, with contempt, the latest PR stunt by the tyrant Erdogan.”
In Soviet times, Western observers would scrutinise video footage of state occasions, like military parades on Red Square, to try to learn more about Kremlin hierarchy.
Who was positioned closest to the leader? What did the body language say? Which officials were in and out of favour?
In some ways, not much has changed.
The footage present-day Kremlinologists are currently pouring over is from Wednesday’s landmark meeting of Russia’s Security Council, in which Vladimir Putin told his top officials to start drafting proposals for a possible nuclear weapons test.
It was an important moment. Not one you’d expect a trusted lieutenant to miss. But Sergei Lavrov, Russia’s veteran foreign minister, was conspicuously absent – the only permanent member of the Council not present.
According to the Russian business daily, Kommersant, his absence was “coordinated”.
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Image: US President Donald Trump meets with Russia’s President Vladimir Putin in Alaska. Pic: AP
Image: Sergey Lavrov and Marco Rubio in Alaska. Pic: AP
That episode alone would have been enough to raise eyebrows.
But coupled with the selection of a more junior official to lead the Russian delegation at the upcoming G20 summit (a role Lavrov has filled in recent years) – well, that’s when questions get asked, namely: Has Moscow’s top diplomat been sidelined?
The question has grown loud enough to force the Kremlin into a denial, but it’s done little to quell speculation that Lavrov has fallen out of favour.
Image: Russian foreign minister Sergei Lavrov. File pic: Reuters
Rumours of a rift have been mounting since Donald Trump called off a planned summit with Putin in Budapest last month, following a phone call between Lavrov and US secretary of state Marco Rubio.
According to the Financial Times, it was Lavrov’s uncompromising stance that prompted the White House to put the summit on ice.
Conversations I had with diplomatic sources here at the time revealed a belief that Lavrov had either dropped the ball or gone off-script. Whether it was by accident or by design, his diplomacy (or lack of it) torpedoed the summit and seemingly set back a US-Russia rapprochement.
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September: Anyone downing aircraft in Russian airspace will ‘regret it’
That would’ve angered Putin, who is keen to engage with Washington, not only on Ukraine but on other issues, like nuclear arms control.
More importantly, perhaps, it made the Russian president appear weak – unable to control his foreign minister. And Putin is not a man who likes to be undermined.
Football fans will be familiar with Sir Alex Ferguson’s golden rule of management: Never let a player grow bigger than the club. Putin operates in a similar fashion. Loyalty is valued extremely highly.
Image: Lavrov meets with his Iranian counterpart Mohammad Javad Zarif in 2015. Pic: Reuters
Image: North Korea’s Kim Jong Un and Lavrov meet in Pyongyang in 2023. Pic: AP
Image: Lavrov and Chinese counterpart Wang Yi meet in Indonesia in 2022. Pic: Reuters
If Lavrov has indeed been sidelined, it would be a very significant moment indeed. The 75-year-old has been the face of Russian diplomacy for more than two decades and effectively Putin’s right-hand man for most of the Kremlin leader’s rule.
Known for his abrasive style and acerbic putdowns, Lavrov has also been a vociferous cheerleader for Russia’s invasion of Ukraine.
And in the melee that immediately followed the presidents’ press statements at the summit, I remember racing over to Lavrov as he was leaving and yelling a question to him through the line of security guards.
He didn’t even turn. Instead, he just shouted back: “Who are you?”
It was typical of a diplomatic heavyweight, who’s known for not pulling his punches. But has that uncompromising approach finally taken its toll?