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Rishi Sunak has ordered an investigation into Nadhim Zahawi as he resisted calls to sack the Tory party chairman over his tax dispute.

The prime minister asked new ethics adviser Sir Laurie Magnus on Monday to assess whether the cabinet minister breached the ministerial code with the HMRC settlement he made while he was chancellor.

Mr Sunak said he was launching an investigation because “clearly in this case there are questions that need answering”.

But Labour leader Sir Keir Starmer said: “He promised us, his first words, integrity and accountability.

“Well, if those words mean anything, the prime minister should sack him and sack him today and show some leadership.”

Politics live: Zahawi told to quit – amid ‘clear evidence’ TV interview defence was ‘not true’

Scotland’s first minister, Nicola Sturgeon, has also said Mr Zahawi’s position is “untenable”.

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Earlier, a source close to the embattled Tory MP said he is “absolutely not going to resign” in the face of growing pressure over his settlement, estimated to be around £5m.

The government’s paymaster general, Jeremy Quin, told the Commons on Monday the process for the management of conflicts of interest, or potential conflicts is “clear and robust” as he admitted the PM has the ultimate say on appointments.

But he added: “It is a responsibility of all ministers to ensure that no conflict arises or could be reasonably perceived to arise between their role and their interests, financial or otherwise.”

The tax expert who investigated Mr Zahawi has joined calls for him to go, telling Sky News there is “clear evidence” he has not been truthful about his affairs.

Dan Neidle, the Founder of Tax Policy Associates and a Labour member, pointed to comments made by Mr Zahawi to Kay Burley last summer, while the then-chancellor was running to be leader of his party.

Mr Zahawi said he was “clearly being smeared” over questions about his affairs – and that he did not “benefit” from an “offshore trust”.

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Rishi Sunak has asked his independent ethics adviser to investigate Nadhim Zahawi

Speaking to Kay Burley on Monday, Mr Neidle said that a filing disclosure from YouGov – the polling company Mr Zahawi co-founded – showed he “received £99,000 from Balshore Investments”, a company based in Gibraltar.

Mr Neidle said: “That’s not my supposition or a guess – it’s absolute fact.

“And yet he denied that to you.”

Mr Neidle said there could be “an innocent explanation” for Mr Zahawi’s tax error, which the Tory MP called “careless not deliberate”.

But he added: “I lack the imagination to see it and if there isn’t one, I think he should resign.”

What we still don’t know about Zahawi’s tax dispute

Former chancellor Nadhim Zahawi arrives at the Conservative Party head office in Westminster, central London. The embattled Tory party chairman has been under pressure since it was reported that he paid HMRC a seven-figure sum to end a dispute, with Labour calling for him to be sacked. Picture date: Monday January 23, 2023.
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Nadhim Zahawi did not answer questions when he arrived at Conservative Party headquarters on Monday

Questions about Mr Zahawi’s tax affairs have continued, even after he released a statement to “address some of the confusion about my finances”.

On Saturday he admitted he paid what HMRC said “was due” after it “disagreed about the exact allocation” of shares in YouGov.

But he did not disclose the size of the settlement – reported to be an estimated £4.8m including a 30% penalty – or whether he paid a fine.

Sky News understands he did pay a fine, and Mr Neidle said the use of the word “careless” confirms this.

He said “careless means something specific” in tax terms – “that you didn’t behave in a reasonable way”.

“A reasonable way is you instruct decent tax advisers. You tell them the truth, you follow their advice, you check your final tax returns as best you can.”

It is also not clear how much money Mr Zahawi made before settling the dispute.

Mr Neidle said: “I think he would have received about £27m and not paid tax on it until eventually he was forced to because it was being reported. He didn’t admit it, denied it, threatened to sue people and went to HMRC to quietly settle it.”

Mr Zahawi did not answer questions from reporters as he headed into the Conservative Party headquarters in Westminster earlier on Monday.

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Police in Germany arrest suspected Hamas member who ‘acquired Glock pistols to attack Jewish institutions’

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Police in Germany arrest suspected Hamas member who 'acquired Glock pistols to attack Jewish institutions'

Police in Germany have arrested a suspected Hamas member who allegedly obtained guns and ammunition to attack Jewish targets.

Lebanese-born Borhan El-K was picked up on the motorway after crossing into Germany from the Czech Republic on Tuesday night.

In a statement, the German federal prosecutor’s office alleged in August he had procured an automatic rifle, eight Glock pistols and more than 600 pieces of ammunition in Germany.

It’s claimed the weapons were then handed to Wael FM, another suspected member of the Palestinian armed group Hamas, in Berlin.

Wael FM was arrested with the items on 1 October along with two other men named as Adeb Al G and Ahmad I.

Police officer - file image. Pic: iStock
Image:
Police officer – file image. Pic: iStock

The men, whose full names have not been released due to German privacy laws, were charged with preparing a serious act of violence endangering the German state and being members of a foreign terrorist organisation.

Authorities believe that the group had been gathering supplies since the summer.

“The weapons were intended for use by Hamas in assassination attacks on Israeli or Jewish institutions in Germany,” the federal prosecutor’s office said in a statement at the time.

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A source suggested that the first three men were detained when they met for the weapons handover.

The arrests came a day before Yom Kippur, the holiest day of the Jewish calendar.

Hamas – which is considered a terrorist organisation by the EU – previously denied any connection to the men and said the allegations against it were “baseless”.

Another alleged member of the group, Mohammed A, was arrested on 3 November in London at the request of German police.

He’s accused of taking five handguns and ammunition from Abed Al G and transporting them to Vienna where they were stored.

This morning Danish Police searched premises linked to Borhan El-K and another suspect in and around Copenhagen following Mr El-K’s arrest on Tuesday.

He was due to appear before a judge today.

In February, four suspected Hamas members went on trial in Berlin accused of plotting attacks on Jewish sites in Europe.

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Chinese hackers are sabotaging key infrastructure in Australia, spy chief warns

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Chinese hackers are sabotaging key infrastructure in Australia, spy chief warns

Hackers working for the Chinese military and government have been probing Australia’s key infrastructure and telecoms network, warns spy chief.

Mike Burgess, director-general of security for the Australian Security Intelligence Organisation, warned Australians could have their water and electricity supplies cut off as well as extensive banking trouble if hackers managed to cause widespread telecoms disruption.

“Foreign governments have elite teams investigating these possibilities right now,” Mr Burgess insisted.

However, China‘s foreign ministry accused Burgess’s statement of spreading false narratives.

Pic: Reuters
Image:
Pic: Reuters

The warning demonstrates the difficulty faced by Australian prime minister Anthony Albanese in trying to keep China close economically while trying to mitigate security concerns.

Burgess said espionage was estimated to have cost the country A$12.5bn (£6.2bn) last year, including billions in trade secrets and intellectual property.

In particular, he highlighted the activities of the Chinese hacking groups Salt Typhoon and Volt Typhoon.

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He highlighted how Salt Typhoon had previously penetrated US telecoms systems intending to disrupt operations and pre-position for potential sabotage.

How Chinese hackers compromised the US

In December, Washington said China had hacked dozens of countries and at least eight major US telecommunication companies, including: AT&T, Verizon and Lumen Technologies.

This resulted in officials in Beijing having access to the private texts and calls of a “large number” of Americans.

US officials later urged Americans to use encrypted messaging apps to minimise the chances of China intercepting their communications.

Senior White House official Anne Neuberger said authorities didn’t believe any classified communications had been compromised.

A senior US official said that China’s access was large enough to risk an “ongoing compromise”.

China rejected the accusations that it was responsible for the hack.

Burgess also warned that Australian companies could be crippled as trade competitors or that elections could be affected.

Chinese officials made complaints to the Australian government and private sector about ASIO whenever he spoke
publicly about China, Burgess said during a speech last week. “It won’t stop my resolve,” he said.

Not the first time alarms have been raised

Concerns were raised in Canberra in February after Chinese warships conducted live-fire drills with minimal warning in the Tasman Sea.

Australian authorities only heard about the drills when a commercial pilot for Virgin Australia notified Airservices Australia.

Chinese frigate Hengyang, one of three vessels involved in the circumnavigation of Australia. Pic: Australian Defense Force /AP
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Chinese frigate Hengyang, one of three vessels involved in the circumnavigation of Australia. Pic: Australian Defense Force /AP

The drills resulted in 49 flights having to change their path.

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Princess Anne lays a wreath at memorial service in Singapore

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Princess Anne lays a wreath at memorial service in Singapore

It was a sombre occasion when the Princess Royal paid tribute to those who gave their lives defending freedom thousands of miles from home.

Under grey skies, Anne joined British and Singaporean veterans in a minute’s silence at the Kranji War Cemetery in Singapore.

She then took a poppy wreath in her hands and laid it at the memorial before taking two steps back.

Princess Anne lays a wreath during Service of Remembrance at the Kranji War Cemetery in Singapore. Pic: PA
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Princess Anne lays a wreath during Service of Remembrance at the Kranji War Cemetery in Singapore. Pic: PA

Nearly 4,500 Commonwealth casualties of the Second World War, who died defending Singapore and Malaya from Japan, are laid to rest in the cemetery.

Among them is Midshipman James Bremridge, a relative of Anne’s husband Sir Timothy Laurence.

Mr Bremridge, who died aged 18, served aboard HMS Repulse, which was sunk by Japanese aircraft in the South China Sea in December 1941.

Sir Timothy laid a wreath on his grave.

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Sir Timothy Laurence, husband of Princess Anne, lays a wreath on the grave of a relative at Kranji War Cemetery in Singapore. Pic: PA
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Sir Timothy Laurence, husband of Princess Anne, lays a wreath on the grave of a relative at Kranji War Cemetery in Singapore. Pic: PA

During the visit, Anne met staff from the Commonwealth War Graves Commission, which she heads, and was greeted by its vice chair Peter Hudson.

Commander Tim Curnock of the British Royal Navy read an extract from For the Fallen, before the assembled veterans said “we will remember them” in unison.

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Along with the princess, the presidents of the Singapore Armed Veterans’ League and veterans’ charity Sandbag were also invited to lay wreaths at the memorial.

The piper, who played to mark the occasion, stood at the top of the cemetery overlooking the rows of headstones and saluted after Anne spoke to him.

Princess Anne visits Kranji War Cemetery in Singapore. Pic: PA
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Princess Anne visits Kranji War Cemetery in Singapore. Pic: PA

The two-day visit to Singapore marks 60 years of diplomatic relations with the UK.

The Princess Royal also visited the National Orchid Garden, where a flower was named after her in a short ceremony.

The purple bloom, now called Dendrobium Anne, was “very special” she said.

The Princess Royal with the 'Dendrobium Anne' orchid during a visit to the National Orchid Garden in Singapore. Pic: PA
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The Princess Royal with the ‘Dendrobium Anne’ orchid during a visit to the National Orchid Garden in Singapore. Pic: PA

The princess was also shown around the VIP garden, where orchid hybrids named after various heads of state are kept.

She paused to admire one called Dendrobium Elizabeth after her late mother.

Six members of the royal family have had orchids named after them in the garden, including the Prince and Princess of Wales in 2012.

Anne also visited HMS Spey, which has been deployed to the Indo-Pacific region since 2021.

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