Nadhim Zahawi
Zahawi admitted to a dispute with the tax authorities over gains from the sale of shares in research institute Yougov.
(Photo: AP)
British London Prime Minister Rishi Sunak has sacked Conservative Party Secretary General Nadhim Zahawi for “serious breaches” of ministerial rules. The backdrop is a tax case in which Zahawi has become increasingly embroiled in contradictions.
The 55-year-old will be the focus of British tax investigators during his brief tenure – from July to September 2022 – as Chancellor of the Exchequer. Apparently, he failed to properly tax proceeds from the sale of shares in the research firm Yougov, which he co-founded. Zahawi settled with the Inland Revenue and had to pay £5m in back taxes, including a £1m fine.
The tax scandal threatened to increasingly overwhelm the Conservative Party and its prime minister. Opposition leader Keir Starmer recently described Sunak as “weak in leadership” because of his dithering. After the sacking, Labor politician Dian Abbott asked: “What took Sunak so long?”
But even within the conservatives, pressure on Sunak to sack Zahawi was mounting. The head of government initially refused, instead ordering an investigation into the case by his ethics consultant Laurie Magnus. Sunak claims he was unaware of Zahawi’s tax case when he was appointed to the cabinet in October 2022.
Top jobs of the day
Find the best jobs now and
be notified by email.
“After completing the investigation, the results of which he shared with the two of us, it is clear that there has been a serious breach of the ministerial code,” Sunak wrote to the dismissed minister.
The tax issue is not Sunak’s only problem.
As a result, he informed Zahawi of his decision to remove him from his post. The “Conservative President” was the official chairman of the party, but more of a general secretary. The leader of the party is Sunak himself. At the same time, the ousted one, as a minister without portfolio – he did not head any ministry – was also a member of the cabinet. He is now free from both positions.
Rishi Sunak
In the first 100 days of Sunak’s rule, another minister left the cabinet.
(Photo: IMAGO/ZUMA Wire)
Zahawi has long resisted dismissal, claiming he acted “carelessly” and unintentionally on the tax issue. However, the fact that a finance minister was scrutinized by his own tax investigators at the same time and had to pay a fine of millions was his undoing. Furthermore, Zahawi threatened journalists with lawsuits when they pointed out his summer 2022 tax tricks.
The tax issue is not Sunak’s only problem. An investigation is also underway against his Deputy Prime Minister and Attorney General Dominic Raab. The conservative politician is said to have bullied Justice Department officials for years. Raab denies the allegations.
More: Treasury Secretary Hunt wants to turn the island into “Silicon Valley”.