Ex-minister Nadhim Zahawi risks igniting a damaging, protracted public dispute with Rishi Sunak over the manner in which he was removed as Conservative Party chairman.
The multimillionaire member of Congress was dismissed early yesterday morning due to a seven-figure payment he made to HMRC while serving as chancellor last year.
Less than two hours after receiving a report from ethics chief Sir Laurie Magnus, the Prime Minister fired the former minister of vaccines for a “grave violation of the ministerial code.”
Mr. Zahawi, who reportedly paid a £1 million fine as part of a £5 million settlement with tax officials, had previously threatened journalists investigating the tax investigation with legal action.
He is thought to maintain that he did nothing wrong and that he was not given an opportunity to present his case.
Allies have speculated that he may publish a reply to Sir Laurie’s findings, which cited seven violations of the ministerial code of conduct.
Today, Health minister Helen Whately told Sky News that he had “occasions when he could have been transparent, but he wasn’t.”
Mr. Sunak is currently searching for a’squeaky clean’ candidate for Tory party chairman and struggled yesterday night to find an urgent successor for the position, which is crucial in the run-up to an expected general election next year.
Lord Hague, a former party leader and foreign secretary, has been linked to the position.
Nadhim Zahawi and his wife, Lana, are without remorse.
In an unrepentant letter to Rishi Sunak, who fired him yesterday morning, former Tory chairman Nadhim Zahawi made no mention of the tax dispute that led to his dismissal and offered no apologies for his behavior.
However, a Tory grassroots organization led by supporters of the former prime minister Boris Johnson is demanding that party members have a say in the selection of the new chairman.
The Conservative Democratic Organisation, led by Lord Cruddas, asserted that the chairman, who receives a ministerial appointment, had become “too much a representative of the Government to the membership as opposed to members to the Government.”
It has started a petition to have the position elected annually.
Mr. Zahawi unleashed an astonishing attack on the Press yesterday in response to media allegations that ruined his political career.
Yesterday morning, in an unrepentant letter to Rishi Sunak, who fired him, the former chairman of the Conservative Party made no reference to the tax dispute that led to his dismissal and offered no remorse for his behavior.
Showing no remorse for his actions, Mr. Zahawi said yesterday that he was ‘concerned’ about the behavior of elements of the press that had examined his tax troubles, implying that coverage could result in threats on MPs or his family.
The investigation criticized Mr. Zahawi for his lack of candor in press statements regarding his tax affairs.
On July 10 of last year, when he had been investigated by HMRC for more than a year, he denied reports of the investigation, stating, ‘It’s extremely unfortunate that such accusations were disseminated, and even more unfortunate that they were published.’
Sir Laurie stated that Mr. Zahawi’should have realized’ that he was under investigation by HMRC, which had spoken with him face-to-face the previous year, and that this was ‘a serious concern’
Two ministers told the Mail that former Conservative Party leader William Hague (pictured) was among the candidates for the position of Tory Party chair.
He noted that the dismissal of the findings by the then-chancellor violated the obligation of ministers to be “as transparent as possible with Parliament and the public.”
Yesterday, Mr. Zahawi said in a letter to Mr. Sunak, “I am concerned about the behavior of some members of the fourth estate.”
In an apparent allusion to a recent reported assault on former health secretary Matt Hancock on the London Underground, he added: ‘In a week when an MP was physically assaulted, I fail to understand how ‘The Noose Tightens’ reflects reasonable criticism of public officials. I am sorry for the toll this has taken on my family.
Rishi Sunak said in a letter to Mr. Zahawi that the retiring Tory chairman had committed a “grave breach of the ministerial code.”
Two ministers told the Mail last night that former Conservative leader William Hague is among the possibilities for the position.
If the Prime Minister could convince Hague to do that, it would be terrific. He would be able to convey the Government’s message with clarity and conviction, as he is extremely popular with the party in the country.
No. 10 said that the search may take some time and stated that the Prime Minister has not yet “sound[ed] anyone out,” including Lord Hague, who is a close ally of the PM and was invited to last week’s Cabinet “away day” at Chequers.
Mr. Zahawi’s duties would be temporarily assumed by Tory party chief executive Stephen Massey for the time being.
Allies of Mr. Sunak dismissed Jacob Rees-proposal Mogg’s that Boris Johnson could fill the position.
Mr. Rees-Mogg stated to GB News yesterday that Mr. Johnson possesses “all the necessary characteristics for a party chairman.” Mr. Rees-Mogg conceded, however, that the Prime Minister and his predecessor were “not the closest of political allies.”
According to reports, Grant Shapps, Andrew Mitchell, and Penny Mordaunt “auditioned for the role” during last week’s Chequers away day. It is believed that neither Mr. Shapps nor Mr. Mitchell are interested in the position, and Miss Mordaunt has no political ties to Mr. Sunak.
Last night, Robert Jenrick and Therese Coffey were among the names mentioned.
Mr. Sunak received Sir Laurie’s report at his North Yorkshire residence at 7:00 a.m. yesterday. Two hours later, in a brief telephone discussion, Mr. Zahawi was terminated. Sir Laurie determined that Mr. Zahawi violated the ministerial code seven times, stating that he should have disclosed that he was under investigation by the taxman and had been penalised.
The seven breaches that spelled the end for Nadhim Zahawi.
The Prime Minister dismissed Nadhim Zahawi from the government after he was determined to have committed a “serious breach” of ministerial norms.
The former chairman of the Conservative Party met with HM Revenue and Customs face-to-face in June 2021, two months after the taxman initiated a probe into his activities. Sir Laurie Magnus, the head of ethics, stated that Nadhim Zahawi’should have realized’ he was under investigation.
Despite’specific prompts on tax issues and HMRC investigations and disputes’ on the necessary forms, Mr. Zahawi did not disclose he was the subject of a tax inquiry when he was elevated to education secretary in September 2021.
On July 5 of last year, the former minister of vaccinations was appointed chancellor, putting him in charge of the British tax system. However, he did not disclose that he was the subject of an ongoing tax investigation.
Five days later, Mr. Zahawi asserted that media claims of an investigation into his tax affairs were “slanderous.” He did not alter the record until January 21 of this year, which Sir Laurie deemed “inconsistent with the need for transparency.”
In August, Mr. Zahawi reached a “agreement in principle” with HMRC and paid the taxman in September. However, the then-chancellor did not disclose the scope of the probe or the fact that he was penalized.
He was appointed Chancellor of the Duchy of Lancaster in September, but did not inform officials of the outcome of the probe.
In October, Mr. Zahawi became party chairman. Once again, he failed to tell officials of the outcome of the investigation.
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