How Mohamed Al Fayed left a lasting legacy on British politics with the ‘cash for questions’ scandal

Published

2 years ago

September 2, 2023

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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.

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.

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.

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.

Politics

China says it has ‘no interest’ in spying on UK following latest accusations

Published

2 hours ago

November 19, 2025

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China says it has 'no interest' in spying on UK following latest accusations

China’s foreign ministry has hit back at what it called “unfounded” accusations of spying in Westminster, saying it has “no interest” in gathering intelligence on the UK.

Yesterday, the security service MI5 sent a warning to MPs and peers about two recruitment headhunters who are working for Chinese security services.

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They are Amanda Qiu of BR-YR Executive Search and Shirly Shen of the Internship Union.

But speaking in response to a question by Asia correspondent Helen-Ann Smith, Chinese foreign ministry spokesperson Mao Ning replied: “China has repeatedly made clear its solemn position on this matter.

“We firmly oppose such unfounded allegations and the exaggerated portrayal and sensationalism that project one’s own biases onto others.

“Judgements based on erroneous information will only lead astray.

Ms Mao added: “China never interferes in the internal affairs of other countries, nor does it have any interest in gathering so-called intelligence on the British parliament.”

Chinese spying accusations may signal thorny period ahead

It is China’s standard playbook to outright deny allegations of spying.

But given that it’s common knowledge countries spy on each other, and given the recent spate of allegations of this nature, it might feel a little far-fetched for China to stick so rigorously to the position that the UK is just making it all up.

Not so, says Mao Ning, the spokesperson for China’s Ministry of Foreign Affairs.

When I put it to her, she said that these allegations are, in fact, a “projection of one’s own biases on to others”, and that China doesn’t “have any interest in gathering so-called intelligence on the British parliament”.

That is almost certainly not true. China is commonly understood to run a highly sophisticated espionage operation.

But, in a way, the truth or untruth might be immaterial to the impact on the bilateral relationship.

While the UK government may seek to send strong signals amidst criticism that it’s being too soft, China really does not appreciate this type of laundry being aired in public.

It may well signal a thorny period ahead.

In a message seen by Sky News about parliamentary staff, MPs and peers were warned that the MI5 alert “highlights how the Chinese Ministry of State Security (MSS) is actively reaching out to individuals in our community”.

The message continued: “Their aim is to collect information and lay the groundwork for long-term relationships, using professional networking sites, recruitment agents and consultants acting on their behalf.”

Security minister Dan Jarvis later said in a statement to parliament that “China has a low threshold for what information is considered to be of value, and will gather individual pieces of information to build a wider picture”.

He added: “Let me speak plainly. This activity involves a covert and calculated attempt by a foreign power to interfere with our sovereign affairs in favour of its own interests, and this government will not tolerate it.”

The government made a statement in the House of Commons following the revelations, saying it would take all “necessary measures” to protect the UK.

Westminster employees were warned that two individuals were both known to be reaching out on LinkedIn to “conduct outreach at scale on behalf of MSS”.

This latest warning comes after the collapse of a prosecution of two people suspected of spying on behalf of China.

The previous spying allegations led to controversy over how the government under Labour responded to the Crown Prosecution Service’s requests for evidence.

Sir Keir Starmer sought to blame the previous Conservative government for the issues, which centred on whether China could be designated an “enemy” under First World War-era legislation.

Sir Keir has sought to keep relationships with Beijing somewhat warm, highlighting the value of China as a trading partner.

Politics

New Hampshire approves first-of-its-kind $100M Bitcoin-backed municipal bond

Published

8 hours ago

November 19, 2025

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New Hampshire approves first-of-its-kind 0M Bitcoin-backed municipal bond

New Hampshire has approved the issuance of a $100 million municipal bond backed by Bitcoin, in what appears to be the first structure of its kind at the US state level.

Minutes from a Nov. 17 meeting of the New Hampshire Business Finance Authority (BFA), the state’s business financing agency, show the board planned “to consider approving a resolution authorizing up to $100,000,000 bonds for a project to acquire and hold digital currency.”

Minutes from the following day record that directors voted to “approve the preliminary official intent, with no reservation, to issue a taxable conduit revenue bond for WaveRose Depositor, LLC of up to $100,000,000.”

According to a Wednesday Crypto in America report, the bond is backed by Bitcoin (BTC) and would let companies borrow against overcollateralized BTC held by a private custodian. The state or taxpayers do not back the bond; instead, BFA approves and oversees a private deal, while Bitcoin — reportedly held in custody by BitGo — covers investors.

According to the report, asset manager Wave Digital Assets and bond specialist Rosemawr Management designed the bond to utilize Bitcoin as collateral under the same rules that govern municipal and corporate bonds. Wave co-founder Les Borsai said the goal is to “bridge traditional fixed income with digital assets” for institutional investors.

New Hampshire, United States — *The New Hampshire State House in Concord. Source:* *Wikimedia*

“We believe this structure shows how public and private sectors can collaborate to responsibly unlock the value of digital assets and digital asset reserves,” he added.

The borrower is expected to post approximately 160% of the bond’s value in Bitcoin as collateral, and if the price of BTC drops below roughly 130%, a liquidation would ensure that bondholders stay whole. According to BFA Executive Director James Key-Wallace, fees from the transaction will fund the local innovation and entrepreneurship program, the Bitcoin Economic Development Fund.

New Hampshire dives headfirst into crypto

The news follows New Hampshire becoming the first US state to allow its government to invest in cryptocurrencies in May after Governor Kelly Ayotte signed a bill allowing the municipality to “invest in cryptocurrency and precious metals.”

New Hampshire is also working on a bill to deregulate local cryptocurrency mining operations. In late October, a committee voted 4–2 to send the measure for further review in an interim study after it had been deadlocked in the State Senate twice.

The local administration is viewed as particularly welcoming to the cryptocurrency industry. In early February, Brendan Cochrane, an Anti-Money Laundering specialist at YK Law in New York City, argued that it could become an alternative for crypto companies relocating to the Bahamas.

The latest moves build on a longer history of crypto engagement. Back in 2015, New Hampshire was already working on a bill that would have allowed the state government to accept tax and fee payments in Bitcoin.

The bill ultimately failed in 2016, but it shows how early the local administration began to show interest in this asset class. Additionally, as early as 2016, some advocates were already arguing that New Hampshire was among the world’s most Bitcoin-friendly communities.