Rishi Sunak has ordered an investigation into Nadhim Zahawi as he resisted calls to sack the Tory party chairman over his multimillion-pound 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, but it could extend to his prior tax arrangement and whether he lied to the media.
Mr Sunak retained confidence in the former chancellor but said he was launching an investigation because “clearly in this case there are questions that need answering”.
He added that he was not leader at the time of the allegations and insisted the advice he received when he gave Mr Zahawi a senior role was there was “no reason” not to appoint him.
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”.
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.
Advertisement
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”, however the PM has the ultimate say on appointments.
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.
Please use Chrome browser for a more accessible video player
1:01
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.
It was made in a rare interview with one of the key commanders of Ukraine’s drone forces.
We met in an undisclosed location in woods outside Kyiv. Brigadier General Yuriy Shchygol is a wanted man.
There is a quiet, understated but steely resolve about this man hunted by Russia. His eyes are piercing and he speaks with precision and determination.
Image: Brigadier General Yuriy Shchygol has been in charge of several devastating drone strikes against Russia
His drone units have done billions of dollars of damage to Russia’s economy and their range and potency is increasing exponentially.
More on Russia
Related Topics:
“Operations”, he said euphemistically, “will develop if Russia refuses a just peace and stays on Ukrainian territory”.
“Initially, we had a few drones a month, capable of striking targets 100 to 250 kilometres away. Today, we have drones capable of flying 3,000 to 4,000 kilometres, and that’s not the limit, it’s constrained only by fuel supply, which can be increased”.
Image: A Ukrainian drone struck this building in Kursk, Russia, on Friday. Pic: Kursk regional government/AP
Image: Cars were also damaged in the strike. Pic: Kursk regional government/AP
His teams had just carried off one of their most complicated and most devastating strikes yet. A massive fire was raging in an oil refinery in Volgograd, or Stalingrad as it was once called.
“If the refinery is completely destroyed, it will be one of the largest operations conducted,” Brigadier General Shchygol said. “There have been other major targets too, in Saratov and Akhtubinsk. Those refineries are now either non-operational or functioning at only 5% of capacity.”
Oil is potentially Vladimir Putin’s Achilles heel. So much of his economy and war effort is dependent on it. Donald Trump could cripple Russia tomorrow if he sanctioned it but so has appeared reluctant to do so, a source of constant frustration for the Ukrainians.
Military activity on both sides has increased as diplomacy has picked up pace.
Please use Chrome browser for a more accessible video player
1:35
Moscow correspondent: What’s Putin’s strategy?
Follow The World
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
In another long-range attack, Ukraine says it hit the port of Olya in Russia’s Astrakhan region, striking a ship loaded with drone parts and ammunition sent from Iran.
But on the ground, Russian forces have made a surprise advance of more than 15km into Ukrainian territory.
Ukraine says the intrusion can be contained, but it adds to fears about its ability to hold back the Russians along the 1000-mile frontline.
Image: Russian soldiers prepare to launch a Lancet drone in an undisclosed location in Ukraine. Pic: Russian Defence Ministry Press Service/AP
Russia launches almost nightly drone attacks on Ukraine’s cities, killing civilians and striking residential targets.
General Yuriy says Ukraine picks targets that hurt Russia’s war effort, and it is constantly honing its capability.
“Each operation”, he says, “uses multiple types of drones simultaneously, some fly higher, others lower. That is our technical edge.”
How satisfying, I asked, was it to watch so much enemy infrastructure go up in smoke? He answered with detached professionalism.
“It does not bring me pleasure, war can never be a source of enjoyment. Each of us has tasks we could fulfil in peacetime. But this is war; it doesn’t bring satisfaction. However, it benefits the state and harms our enemy.”
Whatever happens in Alaska, General Yuriy and his teams will continue pioneering drone warfare, hitting Vladimir Putin’s economy where it hurts most.
India’s Prime Minister has warned Pakistan it will not succumb to, or tolerate, nuclear blackmail.
In Narendra Modi’s 12th consecutive speech from the ramparts of Delhi’s iconic Red Fort, he addressed the nation celebrating its 79th Independence Day from colonial Britain.
He laid emphasis on ‘Atmanirbhar’, or self-reliance, in defending India by increasing and developing a more powerful weapons system for security.
Mr Modi said: “India has decided, we will not tolerate nuclear blackmail. We have established a new normal. Now we will not distinguish between terrorists and those who nurture and support terrorists. Both are enemies of humanity”
Image: The historic Red Fort in Delhi has traditionally been the venue for the prime minister’s Independence Day address. Pic: Reuters
Image: Pic: AP
Image: Narendra Modi (top centre) waves after his speech in Delhi. Pic: Reuters
After four days of fighting, a ceasefire was agreed to between the two nuclear-armed neighbours that have fought wars and many skirmishes over decades.
More on India
Related Topics:
US President Donald Trump intervened saying: “I know the leaders of Pakistan and India. I know [them] very well. And they’re in the midst of a trade deal, and yet they’re talking about nuclear weapons… this is crazy.
“I’m not doing a trade deal with you if you’re going to have war, and that’s a war that spreads to other countries, you’ll get nuclear dust. When they start using nuclear weapons, that stuff blows all over the place and really bad things happen.”
Please use Chrome browser for a more accessible video player
2:58
India and Pakistan agree on ceasefire
Pakistan Prime Minister Shehbaz Sharif immediately thanked the American president for the ceasefire and bringing about peace and stability in the region, also recommending him for the Nobel Peace Prize as a genuine peacemaker and his commitment to conflict resolution.
Mr Modi’s government is yet to acknowledge President Trump’s intervention and maintains that the Pakistani military initiated the ceasefire process and India agreed to halt military action.
Please use Chrome browser for a more accessible video player
5:52
‘Pakistan has the upper hand’
In parliament, India’s Foreign Minister Subrahmanyam Jaishankar said: “There was no leader… nobody in the world that asked India to stop its operations. This is something the prime minister also said. There was no linkage of trade in any of these conversations and there was no talk between the prime minister and President Trump.”
Mr Modi’s speech is an audit of the year gone by and his future plans of strengthening the economy and of self-reliance in the face of very high tariffs imposed by President Trump for buying discounted Russian oil.
He spoke of bringing in structural reforms, welfare schemes for farmers, women’s empowerment, employment, technology, clean energy and the green industry, but also raised concerns about rising obesity levels.
Image: Schoolchildren dressed with tree leaves perform during Independence Day celebrations in Kolkata. Pic: AP
Image: Assam Police Commandos in a motorbike formation at a parade in Guwahati. Pic: AP
India has the fourth largest economy in the world and is expected to be the third largest before Mr Modi’s current term ends in 2029.
Although when it comes to GDP per capita income, which serves as an indicator of individual prosperity, India is ranked 144 out of 196 countries.
The big economy illusion of GDP size has little to do with the well-being and fortune of its people, something the government refuses to acknowledge.
Follow The World
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
In its 2024 report, Paris-based World Inequality Lab said the inequality in India now is worse than under British rule. The research stated that 1% of the wealthiest Indians hold 40% of its wealth and enjoy a quarter of the nation’s income.
Comparing the ‘British Raj’ to the ‘Billionaire Raj’, the study said there are now 271 billionaires in the country and 94 new ones were added the previous year. The rise of top-end inequality in India has been particularly pronounced in terms of wealth concentration in the Modi years between 2014-15 and 2022-23.
Please use Chrome browser for a more accessible video player
3:50
Explained: The UK-India trade deal
With over 1.46 billion people, India is the most populous country, making up 17.8% of the global population.
More than half the country is under 30, and it has one of the lowest old-age dependency ratios, enabling productivity, higher savings and investment.
A key challenge for the government is to match employment with its growing young population. It’s even more critical as artificial intelligence (AI) is increasingly used in production and services, eating into jobs.
Image: Indian Army’s Bihar Regiment marching in Kolkata during Independence Day celebrations. Pic: AP
Image: Bagpipers from Jammu Kashmir Police performing in Srinagar, Indian-controlled Kashmir. Pic: AP
Last week, President Trump levied an additional 25% tariff on India for buying Russian oil, taking the total tariff level to over 50% and hitting Indian manufacturing and trade.
“I don’t care what India does with Russia. They can take their dead economies down together,” the president said.
Defending its stance, India says it does so for its energy security and to protect millions of its citizens from rising costs.
It’s a national day of celebration with patriotic fervour all around, but also a grim reminder of the tragedy of partition – the trauma of which still haunts its people.
The spectacle of Israel’s Itamar Ben-Gvir humiliating perhaps the most popular of all Palestinians in his prison cell was as unedifying as the national security minister’s extremist politics.
“You won’t win. Whoever messes with the people of Israel, whoever murders our children, whoever murders our women, we will erase him,” Ben-Gvir told Marwan Barghouti, the figurehead of secular Palestinian nationalism, who appeared shocked and scared.
His lawyer told Al-Arabiya TV that Ben-Gvir threatened him directly and that his life is in danger.
Imprisoned since 2002 on murder charges and sentenced to five life sentences plus an additional 40 years for his role in the second intifada, the 67-year-old had not been seen in many years.
Image: Marwan Barghouti during his murder trial in 2002. File pic: AP
The sight of this drawn, diminished figure will shock many across the Arab world, where he is both hugely popular and considered a potential Palestinian unity leader, were Israel to ever release him.
Barghouti’s face, his hands cuffed above his head, stares out from walls and buildings across the West Bank – a potent symbol of Palestinian suffering and resistance in the face of the Israeli occupation.
His more than two-decade imprisonment leaves him untarnished from the charges of corruption and ineffectiveness levelled at the Palestinian leadership, and opinion polls before 7 October 2023 saw his popularity exceed that of both Ismail Haniyeh, head of Hamas’ political wing, and Palestinian Authority President Mahmoud Abbas.
More on Israel
Related Topics:
Image: Palestinians walk by a portrait of jailed Marwan Barghouti near the West Bank city of Ramallah. File pic: AP
In a statement, the Palestinian Authority condemned Ben-Gvir’s visit as an “unprecedented provocation and organised state terrorism”.
It is also a clear abuse of Ben-Gvir’s authority as national security minister, where he has ultimate oversight over Israel’s prison system and therefore direct access to the record number of Palestinian detainees currently imprisoned there.
Barghouti’s family say he has been held in solitary confinement since the 7 October attacks and has been subjected to brutal assaults, one of which left him severely injured.
Israeli mistreatment
Barghouti will be no stranger to Israeli mistreatment.
In an op-ed from jail to the New York Times in 2017, he detailed the first time he was tortured at the age of just 18, when an Israeli interrogator “forced me to spread my legs while I stood naked in the interrogation room, before hitting my genitals”.
He passed out from the pain, hitting his head, which scarred permanently. Afterwards, he wrote, the Israeli interrogator mocked him, saying he would “never procreate because people like me give birth only to terrorists and murderers”.
Image: Marwan Barghouti in 2012. File pic: AP
Barghouti’s release has been a key component of ceasefire negotiations between Israel and Hamas, with talks in February 2024 breaking down when Israel refused to let him go.
Despite international pressure on Israel to ensure the humane treatment of its prisoners, the ICRC has not been granted access to Palestinian prisoners in Israeli detention since the 7 October attacks.
String of provocations
Ben-Gvir and his fellow ultra-nationalist coalition partner, Finance Minister Bezalel Smotrich, both excel at the provocative act.
Less than two weeks ago, Ben-Gvir was filmed visiting the Al-Aqsa mosque in Jerusalem where he said he prayed, which is in direct violation of the status quo agreement governing relations between Muslims and Jews at the key holy sites on Temple Mount.
Image: Itamar Ben-Gvir in Jerusalem’s Old City last month. Pic: Reuters
Bear in mind, it was Ariel Sharon’s visit to Temple Mount in 2000, which launched the second intifada, and you will get a sense of quite how incendiary that was.
Similarly, on Thursday, in what appeared to be a direct response to international calls for recognition of Palestinian statehood, Bezalel Smotrich announced that Israel would start the long-delayed E1 settlement project between the West Bank and East Jerusalem.
This, he said, would “bury” any notion of a Palestinian state once and for all.
The video showing the public humiliation of a man championed by the likes of Desmond Tutu and Jimmy Carter as the Palestinian Mandela, was released just hours later.
It looks like an attempt by Benjamin Netanyahu‘s ultra-nationalist allies to send a message both to Palestinians and to international supporters of Palestinian statehood that a state, and its potential leadership, is nothing but a pipe-dream.
Image: A protester in the West Bank holds a poster depicting Barghouti during a rally in solidarity with Gaza and prisoners held by Israel. Pic: AP
‘Still pursuing’ Barghouti in prison
In 2013, Barghouti’s wife, Fadwa, launched a campaign for his release and that of all Palestinian prisoners from Robben Island, where Mandela was imprisoned, to draw attention to the similarities between South Africa during the apartheid era and the plight of Palestinians under Israeli occupation.
After the release of this latest video, she wrote on her Facebook page that she barely recognised her husband and was scared to imagine what he had been subjected to.
“They are still pursuing you, Marwan, and chasing you even in the solitary cell where you’ve been living for two years,” she wrote.
“I know that nothing shakes you except what you hear about the pain of your people, and nothing defeats or pains you except the lack of protection for our sons and daughters. You are one of the people: wherever you are, you are among them, for them, with them.”