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A former British soldier who escaped from Wandsworth Prison has been found guilty of spying for Iran.

Daniel Khalife, 23, who was a lance corporal in the Royal Signals, used a sling made from trousers worn by inmates working in the kitchen to cling to the underside of a food delivery lorry on 6 September last year.

He was being held in the Category B prison accused of handing secret information, including a list of soldiers – some of whom were serving in the SAS – to Iranian spies.

MI5, the Ministry of Defence and counter-terrorism police launched a nationwide manhunt, fearing Khalife would try to flee to Tehran or get to the Iranian embassy in London.

Woolwich Crown Court heard that while on the run he bought a mobile phone to call his handlers, who used the code name “David Smith”, and sent the message: “I wait.”

Daniel Khalife after his arrest on 9 September 2023 as he cycled on the Grand Union Canal in West London. Court handout. Credit: MPS
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Khalife was arrested on 9 September. Pic: Met Police

But Khalife was arrested on the morning of 9 September when he was spotted riding a stolen mountain bike along the canal towpath in Northolt, west London – about 14 miles away from Wandsworth Prison.

He initially pleaded not guilty to an escape charge but changed his plea after describing the break-out to jurors, saying it showed “what a foolish idea it was to have someone of my skillset in prison”.

Khalife, who first contacted an Iranian spy soon after he joined the Army aged 16, claimed he wanted to be a “double agent” and “thought he could be James Bond” but had only passed on fake or useless information.

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From October: Jurors shown CCTV of Khalife after escape

Giving evidence, he described himself as an English “patriot”, adding: “I’m certainly not a terrorist or a traitor.”

But he was found guilty of a charge of gathering, publishing or communicating information that might be useful to an enemy between 1 May 2019 and 6 January 2022, under the Official Secrets Act.

Khalife, from Kingston, in southwest London, was also found guilty of eliciting personal information about armed forces personnel that was likely to be useful to a person committing or preparing an act of terrorism on 2 August 2021.

The charge related to a photo of a handwritten list of 15 soldiers, including some from special forces serving in the Special Air Service (SAS) and Special Boat Service (SBS).

Khalife was found not guilty of perpetrating a bomb hoax at his barracks in January 2023.

Daniel Khalife
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Daniel Khalife joined the Army aged 16

‘The ultimate Walter Mitty’

Dominic Murphy, the head of the Metropolitan Police’s counter-terrorism command, said while Khalife’s approach was “amateurish” with elements of “fantasy”, the reality was he provided “highly sensitive” information to the Iranian state.

“He’s the ultimate Walter Mitty character,” he said. “The problem is he’s a Walter Mitty character that was having an extremely significant impact on the real world.”

A Walter Mitty character is someone who is ordinary but has an extraordinary imagination and daydreams about personal triumphs to escape their dull life.

Mr Murphy said the “game” played by Khalife to “fuel his ego” posed “a significant risk to national security” and he had “enjoyed the thrill of the deception throughout”.

Police have disrupted 20 direct plots from the Iranian government, including assignations or immediate threats to life, and the state’s agents “pose a very real threat to national security and to individuals here in the UK”, Mr Murphy said.

Khalife told the jury he contacted an Iranian agent through Facebook because he wanted to endear himself to the UK security services after he was told he couldn’t pass developed vetting to fulfil his dream of working in intelligence because his mother was born in Iran.

A selfie of Daniel Khalife in Mill Hill Park. Pic: Met Police
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A selfie of Daniel Khalife in Mill Hill Park. Pic: Met Police

Khalife collected cash in a dog poo bag. Pic: Met Police
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Khalife collected cash in a dog poo bag. Pic: Met Police

Dead drops

Khalife left material in public locations in exchange for cash in an old-fashioned spy tactic known as the “dead drop” or “dead letter box”.

He first collected £1,500 in a dog poo bag in Mill Hill Park in Barnet, north London, in August 2019 and made a second £1,000 cash pick-up from Kensal Green Cemetery, in North Kensington, in October 2021.

He twice travelled from his barracks, in Staffordshire, to the Iranian embassy in South Kensington, in London, and even flew to Istanbul, where he stayed in the Hilton hotel between 4 and 10 August 2020, and “delivered a package” for Iranian agents, the court heard.

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Sky’s Shamaan Freeman-Powell reports from Woolwich Crown Court

The contact continued while he was deployed to Fort Hood, Texas, where he received training in Falcon, a military communications system.

Khalife repeatedly contacted the British security services himself saying he wanted to be a “double agent”, but MI5 reported him to police, who arrested him.

While on bail, he went AWOL from his base, leaving a device made from three laughing gas canisters bound with sniper tape on his desk.

Undated handout photo issued by the Metropolitan Police of a hoax device. Daniel Khalife, 23, is alleged to have fled his Army barracks in January 2023 when he realised he would face criminal charges over allegations he passed classified information on to the Middle Eastern country's intelligence service. Later, while on remand, he is alleged to have escaped from HMP Wandsworth in September 2023 by tying himself to the underside of a food delivery truck using bedsheets. Issue date: Tuesday October 22, 2024. PA Photo. See PA story COURTS Army . Photo credit should read: Metropolitan Police/PA Wire..NOTE TO EDITORS: This handout photo may only be used in for editorial reporting purposes for the contemporaneous illustration of events, things or the people in the image or facts mentioned in the caption. Reuse of the picture may require further permission from the copyright holder.
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Khalife left a fake device. Pic: Met Police

He stayed in a stolen Ford Transit van, later found containing a camp bed, around £20,000, and notes saying he wanted to defect to Iran.

Prosecutors said he planned to leave the country, having previously travelled to Turkey as a test for onward travel to Iran, and he was in contact with his Iranian handlers, making attempts to get to the embassy.

But he was arrested again three weeks later after a colleague spotted him in the leisure centre. He was then held on remand in Wandsworth Prison, where he managed to get a job in the kitchen.

Escape planned for ‘quite some time’

Khalife told the jury he planned the escape because he wanted to be moved to the high-security unit in Belmarsh to avoid sex predators and terrorists who wanted to do him harm.

A Bidfood delivery lorry parked near to the area in Upper Richmond Road (A205), where a lorry belonging to the company was stopped by police near to the junction with Carlton Drive at 8.37am on Wednesday, following the escape of Daniel Khalife from nearby HMP Wandsworth. Picture date: Friday September 8, 2023.
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Khalife escaped under a Bidfood lorry. Pic: PA

Undated handout photo of sling under the truck used in the prison escape of Daniel Khalife, which was shown to a jury at the Old Bailey, London, during his trial. Khalife, 23, is alleged to have fled his Army barracks in January 2023 when he realised he would face criminal charges over allegations he passed classified information on to the Middle Eastern country's intelligence service. Later, while on remand, he is alleged to have escaped from HMP Wandsworth in September 2023 by tying himself to the underside of a food delivery truck using bedsheets. Issue date: Wednesday October 23, 2024. PA Photo. See PA story COURTS Army. Photo credit should read: Metropolitan Police/PA Wire ..NOTE TO EDITORS: This handout photo may only be used in for editorial reporting purposes for the contemporaneous illustration of events, things or the people in the image or facts mentioned in the caption. Reuse of the picture may require further permission from the copyright holder.
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Khalife used a makeshift sling. Pic: Met Police

Police believe he had been planning the “pretty audacious” break-out for “quite some time” and he wrote in his prison diary of a “failed” escape attempt on 21 August last year.

Khalife told the jury he attached the makeshift rope to the Bidfood lorry on 1 September to test prison security as it made its daily deliveries.

“When I had made the decision to actually leave the prison I was going to do it properly,” he said, describing how he concealed himself, resting his back on the sling as the vehicle was searched.

The driver Balazs Werner said two guards told him someone was missing as they checked the truck with a torch and mirror and he was surprised he was allowed to drive off and that the prison wasn’t in lockdown.

Khalife said he waited for the lorry to stop, dropped to the ground and lay in the prone position until it moved off.

He used the phone at the Rose of York pub in Richmond before a contact withdrew £400 from a nearby cashpoint, which he used to buy a sleeping bag, a mobile phone and a change of clothes.

CCTV footage captured his movements as he bought clothes from Marks & Spencer, stole a hat from Mountain Warehouse, drank coffee at McDonald’s and even read about his escape in the newspaper.

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From October: Khalife caught on CCTV. Pic: Met Police

When he was arrested on the footpath of the Grand Union Canal in Northolt after four days on the run, Khalife told police: “My body aches. I f****d myself up under the lorry” and “I don’t know how immigrants do it”.

Police said he had no help from anyone inside prison, Iran or close family members in London but a 24-year-old man and a 25-year-old woman were arrested earlier this year on suspicion of assisting an offender and the investigation is ongoing.

The prisons watchdog called for Wandsworth to be put into emergency measures in the wake of Khalife’s escape, while a security audit identified “81 points of failure” and resulted in “long overdue” upgrades to CVTV cameras which hadn’t worked for more than a year.

The Ministry of Justice (MoJ) later announced it would be redirecting £100m from across the prison service to spend over five years on bringing in “urgent improvements”.

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Meanwhile, Bethan David, from the Crown Prosecution Service (CPS), said: “As a serving soldier of the British Army Daniel Khalife was employed and entrusted to uphold and protect the national security of this country. But, for purposes of his own, Daniel Khalife, used his employment to undermine national security.

“The sharing of the information could have exposed military personnel to serious harm, or a risk to life, and prejudiced the safety and security of the United Kingdom.

“It is against the law to collate and share secret and sensitive information for a purpose against the interests of the United Kingdom.

“Such hostile and illegal activities jeopardise the national security of the United Kingdom, and the CPS will always seek to prosecute anyone that carries out counter state threats.”

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Boy dies after ‘getting into difficulty’ in lake in southeast London

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Boy dies after 'getting into difficulty' in lake in southeast London

A 15-year-old boy has died after “getting into difficulty” in a lake in southeast London, police say.

Officers and paramedics were called shortly after 3pm on Friday to Beckenham Place Park in Lewisham.

The Metropolitan Police said a boy “was recovered from the lake” at around 10.42pm the same day.

“He was taken to hospital where he was sadly pronounced dead. His death is being treated as unexpected but not believed to be suspicious,” according to the force.

The boy’s family has been told and are being supported by specialist officers.

The force originally said the child was 16 years old, but has since confirmed his age as 15.

In the earlier statement, officers said emergency services carried out a search and the park was evacuated.

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google street view inside Beckenham Place park, Lewisham where a 16 y/o boy is missing after getting into difficulty in a lake
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Emergency teams were called to Beckenham Place Park on Friday afternoon

Beckenham Place Park, which borders the London borough of Bromley, covers around 240 acres, according to the park’s website.

The lake is described as 285 metres long, reaching depths of up to 3.5 metres.

It is designed as a swimming lake for open-water swimming and paddle boarding.

A London Ambulance Service spokesperson said on Friday: “We were called at 3.02pm this afternoon to reports of a person in the water.

“We sent resources to the scene, including an ambulance crew, an incident response officer and members of our hazardous area response team.”

Emergency teams have not explained how the boy entered the water, or whether he was accompanied by others.

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Man charged with murder of 16-year-old boy in Huddersfield

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Man charged with murder of 16-year-old boy in Huddersfield

A man has been charged with the murder of a 16-year-old boy in Huddersfield.

Alfie Franco, 20, will appear before Leeds Magistrates’ Court on Saturday, West Yorkshire Police said.

The suspect, from Kirkburton in West Yorkshire, is also charged with possessing a knife in a public place.

Police were called to a stabbing in Ramsden Street, Huddersfield, at about 2.45pm on Thursday.

The victim suffered a single knife wound to the neck and died later in hospital.

Police said “multiple” enquiries into the stabbing are still ongoing.

A male and a female were arrested on suspicion of assisting an offender, and have been released on bail.

Anyone with information about the incident or footage that could be helpful is urged to contact West Yorkshire Police’s Homicide and Major Enquiry Team.

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‘We will see closures’: The industries hit hardest by national insurance hike

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'We will see closures': The industries hit hardest by national insurance hike

The cost of having staff is going up this Sunday as the increase in employers’ national insurance kicks in.

Chancellor Rachel Reeves announced in the October budget employers will have to pay a 15% rate of national insurance contributions (NIC) on their employees from 6 April – up from 13.8%.

She also lowered the threshold at which employers pay NIC from £9,100 a year to £5,000 a year, meaning they start paying at an earlier point on staff salaries.

This is on top of the national minimum wage rising, the business relief rate for hospitality, retail and leisure reducing from 75% to 40% and the rising cost of ingredients and services.

Sky News spoke to people working in some of the industries that will be hardest hit by the rise in NIC: Nurseries, hospitality, retail, small businesses and care.

NURSERIES

Nearly all (96% of 728) nurseries surveyed by the National Day Nurseries Association (NDNA) said they will have no choice but to put up fees because of the NIC rise, leaving parents to pick up the shortfall.

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The NDNA has warned nurseries could close due to the rise, with 14% saying their business is at risk, 69% reducing spending on resources and 39% considering offering fewer places with government-funded hours as 92% said they do not cover their costs.

Sarah has two children, with her youngest starting later this month, but they were just informed fees will now be £92 a day – compared with £59 at the same nursery when her eldest started five years ago.

“I’m not sure how we will afford this. Our salaries haven’t increased by 50% during this time,” she said.

“We’re stuck as there aren’t enough nursery spaces in our area, so we will have to struggle.”

Karen Richards, director of the Wolds Childcare group in Nottinghamshire, has started a petition to get the government to exempt private nurseries – the majority of providers – from the NIC changes as she said it is unfair nurseries in schools do not have to pay the NIC.

She told Sky News she will have to find about £183,000 next year to cover the increase across her five nurseries and reducing staff numbers is “not off the table” but it is more likely they will reduce the number of children they have.

Joeli Brearley, founder of Pregnant Then Screwed, said parents are yet again having to pay for the price for the government's actions. Pic: Pregnant Then Screwed
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Joeli Brearley, founder of Pregnant Then Screwed, said parents are yet again having to pay the price for the government’s actions. Pic: Pregnant Then Screwed

Joeli Brearley, founder of the Pregnant Then Screwed campaign group, told Sky News: “Parents are already drowning in childcare costs, and now, thanks to the national insurance hike, nurseries are passing even more fees on to families who simply can’t afford it.

“It’s the same story every time – parents pay the price while the government looks the other way. How exactly are we meant to ‘boost the economy’ when we can’t even afford to go to work?”

Purnima Tanuku, executive chair of the NDNA, said staffing costs make up about 75% of nurseries’ costs and they will have to find £2,600 more per employee to pay for the NIC rise – £47,000 for an average nursery.

“The government says it wants to offer ‘cheaper childcare’ for parents on the one hand but then with the other expects nurseries to absorb the costs of National Insurance Contributions themselves,” she told Sky News.

“High-quality early education and care gives children the best start in life and enables parents to work. The government must invest in this vital infrastructure to make sure nurseries can continue to deliver this social and economic good.”

HOSPITALITY

The hospitality industry has warned of closures, price rises, lack of growth and shorter opening hours.

Dan Brod, co-owner of The Beckford Group, a small southwest England restaurant and country pub/hotel group, said the economic situation now is “much worse” than during COVID.

The group has put plans for two more projects on hold and Mr Brod said the only option is to put up prices, but with the rising supplier costs, wages, business rates and NIC hike they will “stay still” financially.

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Dan Brod, co-owner of The Beckford Group, said the government does not value hospitality as an industry. Pic: The Beckford Group
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Dan Brod, co-owner of The Beckford Group, said the government does not value hospitality as an industry. Pic: The Beckford Group

He told Sky News: “What we’re nervous about is we’re still in the cost of living crisis and even though our places are in very wealthy areas of the country, Wiltshire, Somerset and Bath, people are feeling the situation in their pockets, people are going out less.”

Mr Brod said they are not getting rid of any staff as their business strongly depends on the quality of their hospitality so they are having to make savings elsewhere.

“I’m still optimistic, I still feel that humans need hospitality but we’re not valued as an industry and the social benefit is never taken into account by government.”

Chef/owner Aktar Islam, who runs two Michelin starred Opheem in Birmingham, said the rise will cost him up to £120,000 more this year. Pic: Opheem
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Chef/owner Aktar Islam, who runs Opheem in Birmingham, said the rise will cost him up to £120,000 more this year. Pic: Opheem

Aktar Islam, owner/chef at two Michelin-starred Opheem in Birmingham, said the NIC rise will cost him up to £120,000 more in staff costs a year and to maintain the financial position he is in now they would have to make “another million pounds”.

He got emails from eight suppliers on Thursday saying they were raising their costs, and said he will have to raise prices but is concerned about the impact on diners.

The restaurateur hires four commis chefs to train each year but will not be able to this year, or the next few.

“It’s very short-sighted of the government, you’re not going to grow the economy by taxing hospitality out of existence, these sort of businesses are the lifeblood of our economy,” he said.

“They think if a hospitality business closes another will open but people know it’s tough, why would they want to do that? It’s not going to happen.”

The chef sent hundreds of his “at home” kits to fellow chefs this week for their staff as an acknowledgement of how much of a “s*** show” the situation is – “a little hug from us”.

RETAIL

Some of the UK’s biggest retailers, including Tesco, Boots, Marks & Spencer and Next, wrote to Rachel Reeves after the budget to say the NIC hike would lead to higher consumer prices, smaller pay rises, job cuts and store closures.

The British Retail Consortium (BRC), representing more than 200 major retailers and brands, said the costs are so significant neither small or large retailers will be able to absorb them.

Andrew Bailey, the governor of the Bank of England, told the Treasury committee in November that job losses due to the NIC changes were likely to be higher than the 50,000 forecast by the Office for Budget Responsibility (OBR).

Big retailers have warned the NIC rise will lead to higher prices, job cuts and store closures. File pic: PA
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Big retailers have warned the NIC rise will lead to higher prices, job cuts and store closures. File pic: PA

Nick Stowe, chief executive of Monsoon and Accessorize, said retailers had the choice of protecting staff numbers or cancelling investment plans.

He said they were trying to protect staff numbers and would be increasing prices but they would likely have to halt plans to increase store numbers.

Helen Dickinson, head of the BRC, told Sky News the national living wage rise and NIC increase will cost businesses £5bn, adding more than 10% to the cost of hiring someone in an entry-level role.

A further tax on packaging coming in October means retailers will face £7bn in extra costs this year, she said.

“This huge cost burden will undoubtedly reduce investment in stores and jobs and is likely to lead to higher prices,” she added.

SMALL BUSINESSES

A massive 85% of 1,400 small business owners surveyed by the Federation of Small Businesses (FSB) in March reported rising costs compared with the same time last year, with 47% citing tax as the main barrier to growth – the highest level in more than a decade.

Just 8% of those businesses saw an increase in staff numbers over the last quarter, while 21% had to reduce their workforce.

Kate Rumsey, whose family has run Rumsey’s Chocolates in Wendover, Buckinghamshire and Thame, Oxfordshire, for 21 years, said the NIC rise, minimum wage increase and business relief rate reduction will push her staff costs up by 15 to 17% – £70,000 to £80,000 annually.

To offset those costs, she has had to reduce opening hours, including closing on Sundays and bank holidays in one shop for the first time ever, make one person redundant, not replace short-term staff and introduce a hiring freeze.

The soaring price of cocoa has added to her woes and she has had to increase prices by about 10% and will raise them further.

Kate Rumsey, who runs Rumsey's Chocolates in Buckinghamshire and Oxfordshire, said they are being forced to take a short-term view to survive. Pic: Rumsey's Chocolates
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Kate Rumsey, who runs Rumsey’s Chocolates in Buckinghamshire and Oxfordshire, said they are being forced to take a short-term view to survive. Pic: Rumsey’s Chocolates

She told Sky News: “We’re very much taking more of a short-term view at the moment, it’s so seasonal in this business so I said to the team we’ll just get through Q1 then re-evaluate.

“I feel this is a bit about the survival of the fittest and many businesses won’t survive.”

Tina McKenzie, policy chair of the FSB, said the NIC rise “holds back growth” and has seen small business confidence drop to its lowest point since the first year of the pandemic.

With the “highest tax burden for 70 years”, she called on the chancellor to introduce a “raft of pro-small business measures” in the autumn budget so it can deliver on its pledge for growth.

She reminded employers they can claim the Employment Allowance, which has doubled after an FSB campaign to take the first £10,500 off an employer’s annual bill.

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National Insurance rise impacts carers

CARE

The care sector has been warning the government since the October that budget care homes will be forced to close due to the financial pressures the employers’ national insurance rise will place on them.

Care homes receive funding from councils as well as from private fees, but as local authorities feel the squeeze more and more their contributions are not keeping up with rising costs.

The industry has argued without it the NHS would be crippled.

Raj Sehgal, founding director of ArmsCare, a family-run group of six care homes in Norfolk, said the NIC increase means a £360,000 annual impact on the group’s £3.6m payroll.

In an attempt to offset those costs, the group is scrapping staff bonuses and freezing management salaries.

It is also considering reducing day hours, where there are more staff on, so the fewer numbers of night staff work longer hours and with no paid break.

Raj Sehgal said his family-owned group of care homes will need £360,000 extra this year for the NIC hike
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Raj Sehgal said his family-owned group of care homes will need £360,000 extra this year for the NIC hike

Mr Sehgal said: “But what that does do unfortunately, is impact the quality you’re going to be able to provide, at a time when we need to be improving quality, but something has to give.

“The government just doesn’t seem to understand that the funding needs to be there. You cannot keep enforcing higher costs on businesses and not be able to fund those without actually finding the money from somewhere.”

He said the issue is exacerbated by the fact local authority funding, despite increasing to 5%, will not cover the 10% rise.

“It’s going to be a really, really tough ride. And we are going to see a number of providers close their doors,” he warned.

Nadra Ahmed, executive co-chair of the National Care Association, said those who receive, or are waiting to access, care as well as staff will feel the impact the hardest.

“As providers see further shortfalls in the commissioning of care services, they will start to limit what they can do to ensure their viability or, as a last resort exit the market,” she said.

“This is very short-sighted, with serious consequences, which alludes to the understanding of this government.”

Government decided to ‘wipe the slate clean’

A Treasury spokesperson told Sky News the government is “pro-business” but has “taken the difficult but necessary decisions to wipe the slate clean and properly fund our public services after years of declines”.

“Our budget choices have already delivered an NHS with falling waiting lists, a £3.7bn rescue package for social care, and vital protection for Britain’s small businesses,” they said.

“We’re making tough choices today to secure a better tomorrow through our Plan for Change. By investing in economic growth and early years education while capping corporation tax, we’re putting more money in working people’s pockets and giving every child the best start in life.”

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