Rishi Sunak urged to ‘come clean’ over what he knew about Nadhim Zahawi tax scandal after Tory chairman’s sacking
Rishi Sunak has been urged by Labour to “come clean” over what he knew about Nadhim Zahawi’s tax affairs after the PM sacked the Tory party chairman on Sunday.
An ethics inquiry into the handling of Mr Zahawi’s finances found a “serious breach” of the ministerial code and Mr Sunak swiftly removed the Tory chairman from his position.
But the PM remains under pressure to outline what he knew about the investigation into Mr Zahawi’s tax affairs and when.
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Labour’s deputy leader Angela Rayner and chairwoman Anneliese Dodds have written to Mr Sunak asking him to give the public “full transparency”.
The letter includes a range of questions for the prime minister to answer:
• When he was made aware of the HMRC investigation into Zahawi’s tax affairs and if he knew the former Party Chair had agreed a multi-million pound settlement with the taxman
• Why he previously stated at PMQs that all questions on this issue had been answered
• What discussions he had with Zahawi before appointing him to his cabinet
• When he will keep his promise to publish his own tax return for the 2022/23 tax year
• If any Conservative ministers had failed to submit their declaration of interests, and when the next register would be published.
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What is going on with Zahawi’s taxes?
Ms Dodds described Mr Sunak as “weak” for not sacking Mr Zahawi “when this murky affair first surfaced”.
“Rishi Sunak has eventually relented to pressure and sacked Nadhim Zahawi,” she said.
“This doesn’t change the fact that his government is drowning in sleaze, with whole rogues’ gallery of ministers being investigated for security breaches, bullying allegations and murky tax affairs.
“We need to know precisely what Rishi Sunak knew about Zahawi’s tax affairs and the HMRC investigation, why he was appointed to the cabinet in the first place, and when the prime minister will be transparent about his own tax return.”
Ms Rayner added: “This hopelessly weak prime minister has been dragged kicking and screaming into doing what he should have done long ago.
“Rishi Sunak shouldn’t have needed an ethics adviser to tell him that Nadhim Zahawi’s position was untenable, but instead he continued to prop up the man he appointed to cabinet.
“He must now come clean on the advice he was given about that appointment in the first place and why he apparently ignored the warnings.”
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Nadhim Zahawi’s life in politics
Mr Sunak had resisted earlier calls from opposition parties to sack Mr Zahawi as Tory party chairman following reports that he had paid a penalty as part of an estimated £4.8m settlement dispute with HMRC.
He had instead asked his new ethics adviser – Sir Laurie Magnus – to assess whether the settlement amounted to a breach of the ministerial code.
In a letter written by Sir Laurie to the PM on Sunday morning following the conclusion of the investigation, the ethics adviser said Mr Zahawi had “shown insufficient regard for the general principles of the ministerial code” and had not fulfilled the requirements of being an “honest, open and an exemplary leader”.
In the correspondence to Mr Sunak released by Downing Street, Sir Laurie said his overall judgement was that the “omissions” by Mr Zahawi regarding his tax affairs “constitute a serious failure to meet the standards set out in the ministerial code”.
In a second letter written by the PM to Mr Zahawi following Sir Laurie’s findings, Mr Sunak said it is “clear that there has been a serious breach of the ministerial code” and announced the removal of the Tory chairman from his ministerial position.
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Nadhim Zahawi has been sacked
Informing Mr Zahawi of his decision to remove him from government, Mr Sunak wrote: “Following the completion of the independent adviser’s investigation – the findings of which he has shared with us both – it is clear that there has been a serious breach of the Ministerial Code.
“As a result, I have informed you of my decision to remove you from your position in His Majesty’s Government.”
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The row surrounding Mr Zahawi had centred on a tax bill over the sale of shares in YouGov – the polling firm he founded worth an estimated £27m – which were held by Balshore Investments, a company registered offshore in Gibraltar and linked to Mr Zahawi’s family.
Mr Zahawi had insisted he was “confident” he had “acted properly throughout”.
In a statement on Sunday morning, the Lib Dems said Mr Zahawi should also step down from his role as an MP as he is “unfit to serve the people of Stratford-upon-Avon”.
But in a letter to Mr Sunak following his sacking – in which he made no apology for his actions – Mr Zahawi told the PM he can be “assured of my support from the backbenches in the coming years”.
Speaking shortly after Mr Zahawi’s sacking, Levelling Up Secretary Michael Gove told reporters Mr Sunak had taken “decisive action” following the publication of Sir Laurie’s report.
Donald Trump’s Middle East envoy has met Israel’s prime minister in an effort to secure a ceasefire deal in Gaza before the president-elect takes office on 20 January.
Benjamin Netanyahu’s office confirmed details of the meeting with Steve Witkoff on Saturday, adding that the head of the Israeli Mossad intelligence agency has been deployed to Qatar in order to “advance” talks.
It was not immediately clear when David Barnea would travel to Doha for the latest round of indirect discussions between Israel and Hamas.
Earlier on Saturday, an Israeli official said some progress had been made, mediated by Egypt, Qatar and the United States, to reach a deal in Gaza.
Ronen Bar (left), director of Israel’s security agency, and David Barnea (right), head of Mossad, at a ceremony marking the 7 October Hamas attack. File pic: Reuters
The mediators are making renewed efforts to halt fighting in Gaza and free the remaining Israeli hostages held there before Mr Trump takes office.
A deal would also involve the release of some Palestinian prisoners held in Israeli jails.
Families of Israeli hostages welcomed Mr Netanyahu’s decision to dispatch the officials, with the Hostages and Missing Families Forum Headquarters describing it as a “historic opportunity”.
Mr Witkoff arrived in Doha on Friday and met the Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani, Qatar’s foreign ministry said.
Egyptian and Qatari mediators received reassurances from Mr Witkoff that the US would continue to work towards a fair deal to end the war soon, Egyptian security sources said, though no further details were released.
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Israel launched its assault on Gaza after Hamas fighters stormed across its borders in October 2023, killing 1,200 people and taking more than 250 hostages, according to Israeli figures.
Families of the roughly 100 hostages still held in Gaza are pressing Mr Netanyahu to reach a deal to bring their loved ones home.
Since then, more than 46,000 people have been killed in Gaza, according to Palestinian health officials, with much of the area destroyed and gripped by a humanitarian crisis, with most of its population displaced.
Pope Francis has been honoured with America’s highest civilian award by President Joe Biden, who has described the pontiff as “a light of faith, hope, and love that shines brightly across the world”.
It is the first time Mr Biden, 82, has given the Presidential Medal of Freedom with Distinction during his four years in office.
In a statement, the White House said the award is “presented to individuals who have made exemplary contributions to the prosperity, values, or security of the United States, world peace, or other significant societal, public or private endeavours”.
Mr Biden had been scheduled to present the medal to Pope Francis, 88, in person on Saturday in Rome on what was to be the final overseas trip of his presidency. But the president cancelled his visit to monitor the California wildfires.
The White House said Mr Biden bestowed the award during a phone call in which they also discussed efforts to promote peace and alleviate suffering around the world.
President Joe Biden presented Bono with the Presidential Medal of Freedom. Pic: AP
Denzel Washington was also recognised. Pic: AP
Michael J Fox was bestowed with the honour. Pic: AP
The award can be presented with or without distinction.
Mr Biden presented the medal of freedom – without distinction – on 5 January to several people including fellow Democrat Hillary Clinton, humanitarian and U2 singer Bono, fashion designer Ralph Lauren and actors Michael J Fox and Denzel Washington.
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Mr Biden himself is a recipient of the award with distinction, recognised when he was vice president by then president Barack Obama in a surprise ceremony eight years ago.
Barack Obama presented Joe Biden with the Presidential Medal of Freedom with Distinction in 2017. File pic: AP
The citation for the pope’s honour said his “mission of serving the poor has never ceased”.
“A loving pastor, he joyfully answers children’s questions about God. A challenging teacher, he commands us to fight for peace and protect the planet. A welcoming leader, he reaches out to different faiths,” it added.
Ukraine has captured two North Korean soldiers fighting in Russia’s Kursk region, President Volodymyr Zelenskyy has said.
The injured pair are now in Kyiv and communicating with the Security Service of Ukraine, the country’s domestic intelligence agency, he said.
Ukrainian special forces and paratroopers captured the North Koreans, Mr Zelenskyy said in a post on X.
“As with all prisoners of war, these two North Korean soldiers are receiving the necessary medical assistance,” he said.
“I have instructed the Security Service of Ukraine to grant journalists access to these prisoners.
“The world needs to know the truth about what is happening.”
Mr Zelenskyy said capturing the soldiers alive was “not easy”. He also claimed Russian and North Korean forces fighting in Kursk have tried to conceal the presence of North Korean soldiers, including by killing wounded comrades on the battlefield to avoid their capture and interrogation by Ukraine.
The post included images of the two men – one with a bandage around his jaw and the other around both hands and wrists – and what appeared to be a Russian military document.
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Ukraine’s security service SBU on Saturday provided further details.
It said one of those detained had no documents at all, while the other had been carrying a Russian military ID card in the name of a man from Tuva, a Russian region bordering Mongolia.
“The prisoners do not speak Ukrainian, English or Russian, so communication with them takes place through Korean translators in cooperation with South Korean intelligence,” a statement said.
One of the soldiers claimed he had been told he was going to Russia for training, rather than to fight against Ukraine, according to the SBU.
The agency added both men are being provided with medical care in line with the Geneva Conventions, and investigated “in cooperation with South Korean intelligence”.
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North Korean regular troops entered the war on Russia’s side in October, according to Ukraine and its Western allies.
US, South Korean and Ukrainian intelligence assessments suggest up to 12,000 North Korean combat troops have been sent by Pyongyang under a pact with Moscow.
They believe North Korea has also been supplying Russia with vast quantities of artillery shells.
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