Al-Zahawi held several ministerial portfolios, and Sunak praised his role in fighting the Corona virus.
British Prime Minister Rishi Sunak has sacked Nazim Al Zahawi, head of the ruling Conservative Party, after an investigation into his tax file.
In his dismissal letter, Sunak said the investigation had established Zahawi’s “serious breach” of the ministerial code of conduct.
Sunak had asked the government’s advisor to the new curator, Sir Laurie Magnus, to investigate after it was found that Al-Zahawi had paid a fine to the Tax Authority during his work as Minister of Finance for not paying taxes in the past.
Sir Lowry’s investigation concluded that Al-Zahawi had not clearly disclosed his financial resources.
Sunak sent a message to Al-Zahawi, in which he said: “As a result, I inform you of my decision, which is to remove you from your position in His Majesty’s government.”
In response, Al-Zahawi thanked the prime minister and said he was proud of his accomplishments in government, highlighting the launch of the vaccination campaign and arrangements for the Queen’s funeral, but he did not offer an apology or talk about his tax affairs.
He promised to continue to support the prime minister “from the back benches (in the House of Commons) in the coming years”.
Al-Zahawi founded the YouGov website in 2000, a site that turned into a government company in 2005. He was also the director of the company operating the site specialized in conducting opinion polls until 2010, when he was elected to the House of Commons.
It is not yet clear how much the British prime minister knew about Zahawi’s tax problems, who later described them as a mistake “negligently, not intentionally”.
detailed investigation
Sir Lowry, who presented his findings to the prime minister, said the tax authority first began scrutinizing Al Zahawi’s tax file for the first time in April 2021.
Lowry added that Al-Zahawi told him that he thought it was just “a question only about certain inquiries,” and this impression continued until he received a letter from the commission on July 15, 2022.
When Al-Zahawi became Minister of Finance on July 5, 2022, he completed writing the data of the declaration of interest form for his assumption of the new position, and he did not refer to the commission’s investigation into his taxes.
Al-Zahawi did not update this form until after obtaining a letter from the Tax Authority on July 15, 2022.
Sir Lowry confirmed that Al-Zahawi did not meet the requirements of the ministerial law to declare any conflict of interest.
Al-Zahawi reached an agreement with the tax authority in August 2022 for failing to take “reasonable care”.
The total amount paid in taxes was around £5m, including a fine, the BBC has learned.
Sir Lowry explained that he “neglected to disclose what happened,” and Al-Zahawi should have updated his declaration of interests after the settlement, especially when two new governments were formed under former Prime Minister Liz Terrace, in September 2022, then Rishi Sunak in October. October 2022.
Taken together, he said, these “omissions” constitute a “serious failure to meet the standards set forth in the Ministerial Code”.
As part of his investigation, Sir Lowry also examined Zahawi’s statement on 10 July 2022 when he described news stories, in which he said he was under investigation by the Tax Authority, as “smearing his reputation”.
Al-Zahawi did not correct the record until January 21, 2023. In another public statement, he said he had reached a settlement with the tax authority after an investigation.
Sir Lowry said: “I consider that this delay in correcting a public statement was not correct, and contrary to the requirement of transparency.”
He concluded that Al-Zahawi showed “insufficient interest in the general principles of ministerial law and the requirements in particular under the Seven Principles of Public Life, to be honest, open, and an exemplary leader through his own conduct.”
He also praised Zahawi’s “willingness to assist with inquiries made to him”. He said he appreciated the pressures of being a minister.
But he added that “these factors, however, cannot mitigate my general opinion that Zahawi’s conduct as minister has fallen below the high standards expected of him as a prime minister, and of those who serve in your cabinet.”
In his letter to Zahawi, Sunak said the cabinet “can be very proud of your wide-ranging achievements in government over the past five years”.
He specifically cited Al-Zahawi’s work overseeing the COVID vaccine, saying it was “critical to ensuring our country emerges from this crisis and saving many lives.”
Angry reactions
However, speaking to The Laura Kuensberg Show on Sunday, Labor’s shadow education secretary Bridget Phillipson said Zahawi should have been sacked “a long time ago”, but the prime minister was “too weak to act”.
“The reason this continues to happen is because we have a government whose sole principle is party first and country second,” she added.
Bridget Phillipson, of the Labor Party, said Sunak was weak so he hadn’t said Zahawi before.
Kirsty Blackman, of the SNP, said: “There are still questions for Sunak to answer on this whole case about what he knows about the settlement and the advice he received about Zahawi’s tax when he was appointed.”
Blackman added, “The UK government is riddled with corruption and scandal and the only way Scotland can escape is by becoming an independent country.”
Liberal Democrat deputy leader Daisy Cooper said Zahawi should “do the right thing” and resign as an MP.
The UK’s inter-regional equality minister, Michael Gove, told The Laura Kuensberg Show it was important it was “a full and proper investigation” and that the situation required “strong forensic analysis”.
When asked about the validity of Sunak’s decision to appoint Zahawi as chairman of the Conservative Party, Gove said that his “understanding” was that “there was no information that had been shown to the prime minister, whether Rishi or Liz Truss, so they really didn’t have at that time something to think about.” Not including Nazim in the team.
Nick Eardley analysis
Chief Political Correspondent
Nazem Al-Zahawi’s tax affairs have been a source of concern for the government over the past 10 days.
Rishi Sunak has argued that due process is important. But he faced accusations that he was weak because he did not act early to get rid of Zahawi.
The prime minister got the report from his values advisor early Sunday morning. He spoke to Zahawi to tell him he would be fired, and it was then confirmed publicly.
Sir Laurie Magnus’ report left little room for any conclusion other than Zahawi’s departure.
The report highlights a number of times when Zahawi should have come forward to reveal more about his tax affairs – and did not.
Hence the conclusion that there was a gross failure to follow the ministerial code of conduct.