UK Conservative Chairman Zahawi Sacked Over Tax Scandal

By Staff, Agencies

UK Conservative chair Nadhim Zahawi has been sacked after an investigation found he committed a serious breach of the Ministerial Code, the latest scandal to hit one of the UK’s prominent figures.

"Following the completion of the Independent Adviser's investigation ... it is clear that there has been a serious breach of the Ministerial Code," British Prime Minister Rishi Sunak said in a letter to Zahawi, ordering his remove from the Conservative party chair.

"As a result, I have informed you of my decision to remove you from your position in His Majesty’s Government,” Sunak said.

Sunak had initially stood by Zahawi before ordering ethics adviser Laurie Magnus to investigate questions over his tax affairs after Zahawi finally admitted that he reached a tax settlement with HM Revenue and Customs [HMRC] following an “error” over a controversial multimillion-pound shareholding in the polling company YouGov.

Britain’s tax authorities ruled he had been "careless" with his declarations. However, the chairman said at the time that he had not deliberately made an error in paying less tax, amid concerns about the £5 million settlement.

Magnus concluded in his probe that the former Chancellor of the Exchequer had shown "insufficient regard" for the requirement "to be honest, open and an exemplary leader through his own behavior."

One Conservative lawmaker, who declined to be named, said sacking Zahawi was "clearly the right decision," adding Zahawi "should have resigned to avoid the embarrassment."

The opposition Labor Party said that Sunak had shown weakness in how he had handled Zahawi’s case.

"It's vital that we now get answers to what Rishi Sunak knew and when did he know it," Labor’s education spokesperson Bridget Phillipson said on Sunday.

Zahawi’s sacking over tax scandal comes on the heels of another separate scandal by former Prime Minister Boris Johnson, who recommended Richard Sharp as the chairman of the BBC in return for a loan guarantee.

The Labor party has reported Johnson to the Parliamentary Commissioner for Standards. However, Johnson has denied any conflict of interest over his role in appointing Sharp while in No 10.

Similar calls for a formal probe into the former PM’s loan affair came after the Time newspaper reported on Saturday that Richard Sharp was involved in arranging a guarantor on a loan of up to £800,000 for Johnson to finance his Downing Street lifestyle in November and December 2020.