Zahawi's seven breaches of ministerial code in bombshell ethics investigation
Rishi Sunak has sacked Tory Chairman Nadhim Zahawi for "serious" breaches of the ministerial code after the devastating findings of an ethics probe.
It comes after days of damaging rows over the tax affairs of Mr Zahawi, who was appointed to the position at Tory HQ in October by the Prime Minister.
The row surrounding Mr Zahawi centres on a settlement and penalty he paid to HMRC while he was Chancellor in the dying days of Boris Johnson's Government.
It was only last weekend the Tory MP admitted publicly to paying a settlement with the tax office, saying he had made a "careless" error.
The comments led Mr Sunak - who initially said Mr Zahawi addressed the matter in full - to order his ethics adviser Sir Laurie Magnus to investigate on Monday.
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In a little under a week, Sir Laurie reported back to the PM on Sunday with his findings setting out a series of failings by Mr Zahawi in an excruciating letter.
Prime Minister Rishi Sunak’s letter to Nadhim Zahawi sacking him from cabinet (UKGOV)In response, Mr Sunak said there had been a "serious breach" of the ministerial code and sacked Mr Zahawi from the Government.
In his own letter Mr Zahawi made no apology for his conduct or failings and instead criticised some of the media's reporting.
Here The Mirror looks at the key points of Sir Laurie's letter - and seven breaches of the ministerial code.
April 2021
Sir Laurie sets out Mr Zahawi's discussions with HMRC began in April 2021 and the then-vaccines minister attended a meeting in June 2021.
The ethics adviser said the Tory MP claimed "he had formed the impression that he and his advisers were merely being asked certain queries by HMRC concerning his tax affairs, and that this impression persisted" until 15 July 2022 - 10 days after being appointed Chancellor.
Rishi Sunak has been branded 'weak' for not sacking Nadhim Zahawi earlier (PA)Sir Laurie, however, insisted that Mr Zahawi should have understood he was "under investigation by HMRC and that this was a serious matter".
The investigator says Mr Zahawi breached the ministerial code by failing to declare the HMRC probe.
September 2021
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Mr Zahawi was appointed Education Secretary and failed to declare HMRC's investigation into his tax affairs.
Sir Laurie said: "Despite the ministerial declaration of interests form including specific prompts on tax affairs and HMRC investigations and disputes - Mr Zahawi failed to meet the requirement (at paragraph 7.3 of the Ministerial Code) to declare any interests which might be thought to give rise to a conflict".
Nadhim Zahawi leaves the Conservative party head office earlier this week (Ian Vogler / Daily Mirror)5 July 2022
Mr Zahawi completed a declaration of interests form on 5 July after being appointed Chancellor by Boris Johnson.
It contained no reference to the HMRC investigation, Sir Laurie said.
"Only following receipt of HMRC’s letter received on 15th July 2022 (dated 13th July), did Mr Zahawi update his declaration of interests form to acknowledge that his tax affairs were under investigation, but he provided no further details other than the statement made previously that he was clarifying queries."
10 July 2022
Mr Zahawi made a statement after media reports claiming stories about him were "inaccurate, unfair and are clearly smears".
He said: “These smears have falsely claimed that the Serious Fraud Office, the National Crime Agency, and HMRC are looking into me. Let me be absolutely clear. I am not aware of this. I have not been told that this is the case.
“I’ve always declared my financial interests and paid my taxes in the UK. If there are questions, of course, I will answer any questions HMRC has of me.”
Mr Zahawi did not apologise in his letter to Mr Sunak (Kirsty Wigglesworth/AP/REX/Shutterstock)The ethics investigator Sir Laurie says Mr Zahawi did not correct the record until January 2023, adding: "I consider that this delay in correcting an untrue public statement is inconsistent with the requirement for openness."
August 2022
Mr Zahawi reached an initial agreement with HMRC in August 2022 and a final settlement the following month, including a penalty.
In his withering letter, Sir Laurie added: "The subsequent fact that the investigation concluded with a penalty in relation to the tax affairs of a Minister also requires declaration and discussion.
"It is a relevant interest which could give rise to a conflict, and particularly so in the case of HM Treasury Ministers and the Chancellor of the Exchequer, who has responsibility for the UK tax system.
"As a result of my inquiries, I conclude that Mr Zahawi failed to update his declaration of interest form appropriately after this settlement was agreed in principle in August 2022".
September 2022
After Liz Truss won the Tory leadership contest, Mr Zahawi was appointed Chancellor of the Duchy of Lancaster at the Cabinet Office.
Mr Zahawi failed to disclose the relevant information when appointed to Liz Truss's Government, Sir Laurie says (Getty Images)"Mr Zahawi failed to disclose relevant information - in this case the nature of the investigation and its outcome in a penalty - at the time of his appointment."
October 2022
After Ms Truss's Government imploded, Mr Zahawi was appointed Tory Chairman and Minister without Portfolio by the new Prime Minister Rishi Sunak.
Mr Zahawi again failed to disclose the nature of the probe or the penalty.
In both the case of Ms Truss and Mr Sunak's Governments, Sir Laurie said: "Without knowledge of that information, the Cabinet Office was not in a position to inform the appointing Prime Minister".
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