Prime Minister Rishi Sunak stated that it was “obvious that there was a significant breach of the ministerial code,” however Mr. Zahawi did not apologize for his acts and attacked the media’s behavior.
An investigation into the handling of Nadhim Zahawi’s tax issues revealed a “severe breach” of the ministerial code, resulting in his dismissal as Tory party chairman.
Following reports that Mr. Zahawi had paid a penalty as part of an estimated £4.8m settlement dispute with HMRC, opposition parties had previously urged Prime Minister Rishi Sunak to dismiss Mr. Zahawi.
Instead, he asked Sir Laurie Magnus, his new ethics adviser, if the payment violated the ministerial code.
Tory chairman Nadhim Zahawi fired over tax issues row
Sir Laurie concluded in a letter to the Prime Minister that Mr. Zahawi had “shown insufficient regard for the general principles of the ministerial code” and had not met the standards of being an “honest, open, and exemplary leader.”
In response to Sir Laurie’s conclusions, the Prime Minister wrote to Mr. Zahawi, stating that it was “obvious that a major breach of the ministerial code had occurred” and announcing his dismissal as Tory chairman.
“Unfit to represent the people of Stratford-upon-Avon,” the Liberal Democrats now want Mr. Zahawi to resign as an MP.
In a letter to Mr. Sunak following his dismissal, in which he offered no apologies for his behavior. Mr. Zahawi guaranteed the Prime Minister of his “backbench support in the coming years.”
He said that he was troubled by “the behavior of some members of the fourth estate in recent weeks.” He was referring to the media.
Mr. Zahawi stated, “After being blessed with a lovely family, it has been the honor of my life to serve in consecutive governments and, I believe, make a measurable impact in the country I adore.”
He said, “I am sorry for the toll this has had on my family.”
The dispute around Zahawi’s tax matters
The dispute involving Mr. Zahawi centered on a tax obligation related to the sale of YouGov shares held by Balshore Investments, a Gibraltar-registered offshore company with ties to Mr. Zahawi’s family. The shares were believed to be worth £27 million.
Mr. Zahawi claimed he was “certain” he had “always acted properly.”
He stated that he paid what HMRC deemed “due” after it “disputed the exact distribution” of YouGov shares.
He added that the blunder was determined to be “careless, not deliberate”. But he did not disclose the settlement amount or if he paid a fine.
Sir Laurie said Mr. Zahawi’s tax “omissions” “constitute a grave breach of the ministerial code.”
Premier deemed ‘too weak’
Instead, he questioned his new ethics adviser, Sir Laurie Magnus, if the payment violated the ministerial code.
She told, “We knew about these charges for a very long time.”
“The prime minister vacillated, wavered, and was unable to decide what to do, even after it became evident that Mr. Zahawi had been in command of HMRC while he was chancellor and negotiating with HMRC.”
Ms. Dodds stated that the public “expects much more from their government, which Rishi Sunak has failed to provide.”
She said, “He is simply too weak to prioritize the interests of our country over. It seems, the interests of his internal party management.”
Michael Gove, however, stated that Mr. Sunak had taken “decisive action” in response to the publishing of Sir Laurie’s findings.
It is believed that the Prime Minister will not name a new Conservative chairman by Sunday’s conclusion.
