Mohamed Al Fayed and “cash for questions” probably did more to bring about the downfall of John Major’s government than any of the other political scandals of the 1990s.
It was Al Fayed’s bribery of Tory MPs Neil Hamilton and Tim Smith – in cash stuffed in brown envelopes – and hospitality at his luxury Ritz Hotel in Paris for cabinet minister Jonathan Aitken that led to the word “sleaze” being associated with the Major government.
It was almost certainly more damaging than the several sex scandals that engulfed Major’s government in the ’90s, because it involved financial impropriety and corruption and projected an image of dishonesty and Tory MPs on the take.
Hamilton was the Thatcherite MP for Tatton in the Cheshire stockbroker belt – a seat later represented by Tory chancellor George Osborne – and was made a junior minister at the Department of Trade and Industry, responsible for the City and corporate affairs, by Major after his surprise general election victory in 1992.
Image: Neil Hamilton in 1994, while he was trade minister
But two years later, in 1994, it was revealed that he had taken cash for asking parliamentary questions on behalf of Al Fayed, along with Smith, who had been MP for Beaconsfield since defeating Tony Blair in a by-election in 1982.
Both MPs had failed to declare the donations from the Harrods tycoon.
It was to cost them their political careers and rob the Conservatives of one of their safest seats, Tatton, in the Blair landslide victory in 1997.
Al Fayed claimed he paid Hamilton up to £110,000 and also gave him Harrods gift vouchers and a free holiday at his Ritz Hotel in Paris, in return for asking parliamentary questions about Harrods during his battle for control of the store with Lonrho tycoon Tiny Rowland.
Smith – also a junior minister – was said to have received between £18,000 and £25,000, handed over in brown envelopes stuffed with £50 notes.
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Image: Mohamed Al Fayed in 1997
He quit straight away, but Hamilton battled on in a futile bid to clear his name.
Aitken, Major’s chief secretary to the Treasury and a former defence procurement minister, was revealed to have stayed without charge at the Ritz in Paris at the same time as Saudi arms dealers.
He sued for libel but was later convicted of perjury and served a jail term.
Smith stood down from parliament in 1997 but Hamilton attempted to cling on in Tatton, but was comprehensively defeated by the so-called “man in the white suit”, anti-sleaze candidate Martin Bell, who was backed by Labour and the Liberal Democrats.
Image: Jonathan Aitken in 1995
The hugely damaging scandal led Major to set up the Committee for Standards in Public Life, which is still operating, though criticised at times for being toothless.
But despite its critics, the committee remains a lasting legacy of the cash-for-questions scandal and advises prime ministers, civil servants and parliament to this day.
And the committee’s best-known former chairman, Sir Alastair Graham, who headed the committee from 2004 to 2007, remains a frequent critic of political scandals such as Boris Johnson’s Partygate.
Hamilton, whose notoriety led him and his extrovert wife Christine to become TV celebrities, later defected to Nigel Farage’s UKIP.
Aitken, on the other hand, turned to God in prison and is now an Anglican priest.
Senate Banking Committee Chair Tim Scott says he’s looking to mark up a crypto market structure bill next month to have it on President Donald Trump’s desk by early next year.
Scott told Fox Business on Tuesday that the committee has been negotiating with Democrats to reach a deal, but accused the party’s senators of stalling.
“Next month, we believe we can mark up in both committees and get this to the floor of the Senate early next year so that President Trump will sign the legislation making America the crypto capital of the world,” Scott said.
Banking Committee Chairman Tim Scott says a vote on the market structure bill could occur in December. Source: YouTube
The House passed the CLARITY Act in July, which outlines the Commodity Futures Trading Commission and the Securities and Exchange Commission’s power to regulate crypto, and the Senate has been working on its own version of the bill.
Republicans on the Senate Banking Committee released a discussion draft on their section of the bill in July and suggested it would marry up with the CLARITY Act, and the Senate Agriculture Committee released its discussion draft on Nov. 10, which left much of the bill up for change.
The Agriculture Committee has jurisdiction over the CFTC, while the Banking Committee oversees the SEC and is leading parts of the bill relating to securities laws.
Bill will create clear rules and unlock crypto: Armstrong
Coinbase CEO Brian Armstrong said in a video posted to X on Tuesday that he was in Washington, DC, “pushing for market structure legislation,” and noted there had been “a lot of progress.”
“Senate banking is also working nights and weekends to get the next iteration of their text out, so we’ve got a good chance, I think, of a markup for this bill in December, hopefully get it to the president’s desk shortly thereafter,” Armstrong said.
“This would be a big milestone to get crypto unlocked with clear rules in the US, which would benefit all companies,” he added.
Where the bill will go from here
The CLARITY Act was one of three major crypto bills the House passed in July after a 10-hour voting session alongside the GENIUS Act, which aims to regulate stablecoins and the Anti-CBDC Surveillance Act, which outlaws central bank digital currencies.
As the Senate is working on its own version, the CLARITY Act will return to the House for final approval if it’s passed by the Senate. It would then be sent to Trump to be signed into law.
Republicans hold the majority in the Senate with 53 seats, compared to the Democrats’ 47 seats, with legislation effectively requiring 60 votes to pass.
The Republic of the Marshall Islands announced that it would allow citizens to access funds through a government-issued digital asset as part of the nation’s Universal Basic Income (UBI) program.
In a Wednesday announcement shared with Cointelegraph, the government of the island nation said it had launched a digital wallet called Lomalo, which will utilize the US dollar-pegged stablecoin USDM1 to enable citizens to access the UBI program. According to the government, the first disbursement of funds will occur in late November, allowing citizens to access them through their wallet, by physical check, or via direct deposit.
“By introducing a secure digital option alongside our traditional methods, we are strengthening our financial systems and ensuring that no community is left behind,” said David Paul, finance minister for the Marshall Islands.
Neighboring Pacific island nations have rolled out similar programs over the years, including Palau’s stablecoin on the XRP Ledger for government employees, and the central bank of the Solomon Islands’ Bokolo Cash for peer-to-peer transactions and retail payments in the nation’s capital, Honiara.
“Citizens will be able to transfer to other registered Lomalo users,” a spokesperson for the Marshall Islands’ finance minister told Cointelegraph. “Right now, only citizens registered for the UBI can set up a wallet.”
Warnings from the IMF on the Marshall Islands utilizing digital assets
The launch of the digital wallet as part of the islands’ UBI program followed warnings from the International Monetary Fund (IMF). In 2023, the group urged the government of the Marshall Islands to reconsider its central bank digital currency program, then known as SOV.
“Progress on rolling back past digital initiatives is welcome,” said the IMF in a Sept. 10 notice. “Current plans to issue a ‘digital sovereign bond’ carry significant risks relative to perceived returns, which cannot be effectively mitigated given lack of pre-requisite capacity. Thus, in the mission’s view, the authorities should not proceed with the global launch as planned.”
The IMF said that the expansion of Decentralized Autonomous Organizations (DAOs), which the Marshall Islands began recognizing as legal entities in 2022, and the launch of the UBI program using the “untested” USDM1 could have “adverse macro-fiscal and financial integrity implications.” The fund urged the government to scale back the UBI program to a “more targeted scheme to those who need it the most.”
Kemi Badenoch has said she does not want to scrap the triple lock “now” but said “lets see mess Labour leaves for us”.
The Tory leader told Sky News that the triple lock was a Conservative idea and that it was right to protect people who had contributed to the welfare system.
The triple lock means the state pension must rise by whichever is highest of either average earnings, inflation or 2.5%.
However, she said she would not say she would “never” reform it or explicitly rule it out for the next parliament.
In April, the government stated that 55% of social security expenditure in 2025-26 would be spent on pensioners.
The Office for Budget Responsibility says the triple lock has pushed up the spending on the state pension by £12bn a year, compared to if it had been uprated in line with average earnings.
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The problem with the triple lock, Ms Badenoch suggested, was low growth – with 0.1% in the UK.
She suggested it was also the reason why Argentinian President Javier Milei – whom she has praised as “fantastic” and “fearless” – could block pensioner entitlement rises is because they are growing at 6%.
“If we were growing a 2% to 3%, you wouldn’t have a problem with pensions,” she explained.
“Argentina is growing at 6%. What we’re seeing right now is growth at 0.1%. Growth is flatlining. We need to start with getting growth.”
But asked whether the Tories would “never” look at reforming the policy, she said: “That moment is not now. And I don’t want people to be confused about what our policy is right now. Our policy is to keep the triple lock. Let us focus on welfare, that is the picture of what we mean by right now.”
Asked how long that would be her position for, Ms Badenoch replied: “Well, let’s see what this budget leaves. Let’s see what mess Reeves leaves for us.”
The triple lock is the cause of much debate, given the economic climate, with Reform UK leader Nigel Farage also saying its future depended on the state of the economy.
Asked by political correspondent Tamara Cohen whether a potential Reform government would keep the triple lock, Mr Farage said the matter was one of “open debate” and that keeping the triple lock would depend “on the state of the economy”.
Pressed on when he would make a decision because pensioners were becoming concerned, he said: “Not now. Nearer the election.”
He added: “Right now they’re getting above inflation increases.
“That doesn’t mean they’re wealthy. The real worry for many pensioners will be even with modest pensions, this budget could drag them all into the tax system. That’ll worry them even more.”