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Deputy Prime Minister David Lammy is expected to be grilled in the Commons today after an asylum seeker sex offender was mistakenly released from prison.

Ethiopian national Hadush Kebatu was jailed for 12 months in September for the sexual assault of a 14-year-old girl and was wrongly freed from HMP Chelmsford on Friday morning instead of being sent to an immigration detention centre.

The migrant, who had been living at the Bell Hotel in Epping, Essex, when he assaulted the girl, travelled from Chelmsford to London and was arrested on Sunday morning in Finsbury Park.

The father of Kebatu’s teenage victim said now that he had been rearrested, he hoped the sex offender would be “deported immediately”. Sky News understands this may be tomorrow.

He said his family felt “massively let down and infuriated” by the migrant’s accidental release and that the police, the justice system and the Labour government had “all failed”.

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Father of Kebatu victim: ‘I am broken’

Mr Lammy is expected to announce in parliament this afternoon that an independent inquiry into what happened will be launched, and to outline the parameters for it.

Mr Lammy, also the justice secretary, said one of the things that would be included in the inquiry was an exclusive Sky News interview with a delivery driver who spoke to Kebatu at HMP Chelmsford.

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The man described Kebatu as being “confused” and was said to have returned to the prison reception four or five times before leaving the area on a train.

Lammy can expect some tough questions today. Pic: PA
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Lammy can expect some tough questions today. Pic: PA

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The release was heavily criticised by opposition politicians.

Chelmsford’s Liberal Democrat MP Marie Goldman called for a “rapid” national inquiry into the blunder that saw him walk free.

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Watch moments after Hadush Kebatu is arrested

‘Inept, shocking and unfit for purpose’

“It’s unacceptable that the safety of my constituents, and the people of London, was ever put at risk,” she said.

“The prison service had several chances to fix it and failed.

“The government has serious questions to answer and major work to do to make the system fit for purpose. It certainly isn’t at the moment.

A prison officer has been suspended following Ketabu's release
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A prison officer has been suspended following Ketabu’s release

Shadow home secretary Chris Philp said he remains “shocked that this inept Labour government let him out in the first place”.

Zia Yusuf, head of policy for Reform UK, told Sky News: “It’s absolutely shocking and how any victim of sexual assault could look at this Labour government and Jess Phillips in particular, and the whole state apparatus right now, and have any degree of confidence is beyond me.”

A prison officer has been suspended while a probe takes place.

Hadush Kebatu left carrying a distinctive avocado-patterened bag. Pic: Met Police
Image:
Hadush Kebatu left carrying a distinctive avocado-patterened bag. Pic: Met Police

It is understood Kebatu, who crossed the Channel in a small boat to enter the UK on 29 June, left prison with an amount of personal money but was not given a discharge grant to cover subsistence costs.

He was convicted of making inappropriate comments to a 14-year-old girl before he tried to kiss her on 7 July – just eight days after he arrived in the country on a small boat.

The migrant was found guilty of five offences and his sentencing hearing in September heard it was his “firm wish” to be deported.

Kebatu’s crime led to protesters and counter-protesters taking to the streets in Epping, and eventually outside hotels housing asylum seekers across the country.

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Millionaire former Tory donor defects to Reform

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Millionaire former Tory donor defects to Reform

Millionaire Tory donor Malcolm Offord has defected to Reform UK, saying he would be campaigning “tirelessly” to “remove this rotten SNP government”.

Nigel Farage announced the former Conservative life peer’s defection during a rally in the Scottish town of Falkirk, where regular anti-immigration protests have taken place outside the Cladhan Hotel – which is being used to house asylum seekers.

Mr Farage, Reform UK’s leader, said he was “delighted” to welcome Greenock-born Lord Offord to Reform, describing his defection as “a brave and historic act”.

He added: “He will take Reform UK Scotland to a new level.”

During a speech, Lord Offord, who previously donated nearly £150,000 to the Tories, said he would be quitting the Conservative Party and giving up his place in the House of Lords as he prepares to campaign for a seat in Holyrood in May.

The 61-year-old said he wanted to restore Scotland to a “prosperous, happy, healthy country”.

“Scotland needs Reform and Reform is coming to Scotland,” he told the rally.

Read more:
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Farage allegations are deeply shocking – but will they deter voters?

“Today I can announce that I am resigning from the Conservative Party. Today I am joining Reform UK and today I announce my intention to stand for Reform in the Holyrood election in May next year.

“And that means that from today, for the next five months, day and night, I shall be campaigning with all of you tirelessly for two objectives.

“The first objective is to remove this rotten SNP government after 18 years, and the second is to present a positive vision for Scotland inside the UK, to restore Scotland to being a prosperous, proud, healthy and happy country.”

The latest defection comes as Mr Farage finds himself at the centre of allegations of racism dating back to his time in school.

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Claims made against Nigel Farage

Sky News reported on Saturday that a former schoolfriend of Mr Farage claimed he sang antisemitic songs to Jewish schoolmates – and had a “big issue with anyone called Patel”.

Jean-Pierre Lihou, 61, was initially friends with the Reform UK leader when he arrived at Dulwich College in the 1970s, at the time when Mr Farage is accused of saying antisemitic and other racist remarks by more than a dozen pupils.

Mr Farage has said he “never directly racially abused anybody” at Dulwich and said there is a “strong political element” to the allegations coming out 49 years later.

Reform’s deputy leader Richard Tice has called the ex-classmates “liars”.

A Reform UK spokesman accused Sky News of “scraping the barrel” and being “desperate to stop us winning the next election”.

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‘European SEC’ proposal sparks licensing concerns, institutional ambitions

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‘European SEC’ proposal sparks licensing concerns, institutional ambitions

The European Commission’s proposal to expand the powers of the European Securities and Markets Authority (ESMA) is raising concerns about the centralization of the bloc’s licensing regime, despite signaling deeper institutional ambitions for its capital markets structure.

On Thursday, the Commission published a package proposing to “direct supervisory competences” for key pieces of market infrastructure, including crypto-asset service providers (CASPs), trading venues and central counterparties to ESMA, Cointelegraph reported.

Concerningly, the ESMA’s jurisdiction would extend to both the supervision and licensing of all European crypto and financial technology (fintech) firms, potentially leading to slower licensing regimes and hindering startup development, according to Faustine Fleuret, head of public affairs at decentralized lending protocol Morpho.

“I am even more concerned that the proposal makes ESMA responsible for both the authorisation and the supervision of CASPs, not only the supervision,” she told Cointelegraph.

The proposal still requires approval from the European Parliament and the Council, which are currently under negotiation. 

If adopted, ESMA’s role in overseeing EU capital markets would more closely resemble the centralized framework of the US Securities and Exchange Commission, a concept first proposed by European Central Bank (ECB) President Christine Lagarde in 2023.

Related: Bank of America backs 1%–4% crypto allocation, opens door to Bitcoin ETFs

EU plan to centralize licensing under ESMA creates crypto and fintech slowdown concerns

The proposal to “centralize” this oversight under a single regulatory body seeks to address the differences in national supervisory practices and uneven licensing regimes, but risks slowing down overall crypto industry development, Elisenda Fabrega, general counsel at Brickken asset tokenization platform, told Cointelegraph.

“Without adequate resources, this mandate may become unmanageable, leading to delays or overly cautious assessments that could disproportionately affect smaller or innovative firms.”

“Ultimately, the effectiveness of this reform will depend less on its legal form and more on its institutional execution,” including ESMA’s operational capacity, independence and cooperation “channels” with member states, she said.

Related: Grayscale Chainlink ETF draws $41M on debut, but not ‘blockbuster’

Global stock market value by country. Source: Visual Capitalist

The broader package aims to boost wealth creation for EU citizens by making the bloc’s capital markets more competitive with those of the US.

The US stock market is worth approximately $62 trillion, or 48% of the global equity market, while the EU stock market’s cumulative value sits around $11 trillion, representing 9% of the global share, according to data from Visual Capitalist.

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