In response to criticism over Nadhim Zahawi’s personal tax arrangements, UK Prime Minister Rishi Sunak gave in on Sunday and fired the chairman of the Conservative Party for a “severe breach” of the Ministerial Code.
After hearing that Zahawi had allegedly paid a fine as part of a purported £4.8 million ($5.96 million) settlement with tax authorities, Sunak last week instructed his ethics adviser to look into the matter. It was claimed that Zahawi failed to disclose the conflict with the tax authorities.
In July of last year, British prime minister Boris Johnson named Zahawi to the position of chancellor of the exchequer, or finance minister. Under Liz Truss, who succeeded Johnson, and Sunak, who succeeded Truss, he remained in the Cabinet and was appointed party chairman.
Sunak wrote to Zahawi that, following the conclusion of the investigation, “it is apparent that there has been a major infraction of the Ministerial Code.” I have thus notified you of my choice to have you terminated from your employment in His Majesty’s Government.
The Ministerial Code of the United Kingdom outlines the moral standards required of ministers and how they are to carry out their responsibilities.
Many Britons, who are struggling to make ends meet in the face of the cost-of-living crisis, were astonished to hear of Zahawi’s multi-million pound settlement with tax authorities.
sleazy stench
Sunak should have fired Zahawi when the allegations were first made public this month, according to the opposition Labour Party, rather than attempting to buy time by opening a probe.
Sunak took office promising “integrity, professionalism, and accountability at every level.” According to senior Labour MP Bridget Phillipson, Sunak was revealed as a “weak” leader by the controversy.
She declared that the Conservative party “just reeks of sleaze.”
The tax arrangements of Sunak’s wife Akshata Murty, the billionaire’s daughter of India, have also drawn scrutiny for Sunak. The Sunday Times Rich List of the UK’s 250 wealthiest persons was published last year, and Sunak and Murty were listed among them. The publication calculated their combined net worth to be £730 million ($826 million).
Murty’s “non-domicile” status in the UK allowed her to legally avoid paying UK taxes on her international revenues from her family’s Infosys business group, it was revealed last year.
He apologized last week for getting his second ticket from the police for not using a seatbelt while driving. While he served as chancellor, Sunak and Johnson both received fines from the police for attending lockdown-breaking parties conducted on UK government property.
Zahawi claimed it had been a privilege of his life to serve in consecutive UK governments in a letter responding to his dismissal, which was published on Sunday. He didn’t mention the results of the ethical investigation into his tax troubles specifically.
“I had no English when I came to this nation in order to escape persecution. Here, I established a prosperous business and held some of the top positions in the administration. I think my narrative would not be conceivable in any other nation on earth,” the statement said.
When his family left Saddam Hussein’s tyranny, Zahawi, who was born in Iraq to Kurdish parents, moved to the UK as a young child. He co-founded the polling firm YouGov and is regarded as one of the wealthiest members of the House of Commons.
