Prime Minister sacks Conservative Party Chairman Nadhim Zahawi for “serious breach” of ministerial code.

Conservative MP Nadhim Zahawi has been sacked from his position as chairman of the Tory Party following a “serious breach” of the ministerial code.

In a letter to Zahawi, published on Sunday morning, Prime Minister Rishi Sunak said it was “clear that there has been a serious breach of the Ministerial Code.” The Prime Minister did not provide further details on the nature of the breach.

This week, Zahawi admitted to settling a tax dispute with HM Revenue & Customs during his time as Chancellor of the Exchequer.

He revealed that he paid what “was due” after a disagreement about the exact allocation of shares in the YouGov polling company, which he co-founded. Zahawi did not disclose the size of the settlement, which is reported to be an estimated £4.8m, including a 30% penalty, or whether he paid a fine.

In his letter this morning, Rishi Sunak told Zahawi : “ When I became Prime Minister last year, I pledged that the Government I lead would have integrity, professionalism and accountability at every level. ”

“That is why, following new information which came to light in recent days regarding your personal financial arrangements and declarations, I asked Sir Laurie Magnus, the Independent Adviser on Ministers’ Interests, to fully investigate this matter. You agreed and undertook to cooperate fully with the inquiry.”

“Following the completion of the Independent Adviser’s investigation – the findings of which he has shared with us both – it is clear that there has been a serious breach of the Ministerial Code. As a result, I have informed you of my decision to remove you from your position in His Majesty’s Government. ”

Rishi Sunak‘s ethics adviser Sir Laurie Magnus has been investigating Zahawi’s tax settlement after the prime minister said there were “clearly questions that need answering”.

In a letter to Sunak, Magnus said: “I consider that Mr Zahawi, in holding the high privilege of being a Minister of the Crown, has shown insufficient regard for the General Principles of the Ministerial Code and the requirements in particular, under the seven Principles of Public Life, to be honest, open and an exemplary leader through his own behaviour.”

He said: “Mr Zahawi’s conduct as a Minister has fallen below the high standards that, as Prime Minister, you rightly expect from those who serve in your government.”

Responding to Nadhim Zahawi’s sacking, Plaid Cymru Westminster leader, Liz Saville Roberts MP said:

“Rishi Sunak has finally sacked tax dodger Zahawi.”

“His departure was always inevitable. Sunak’s dithering and delaying shows that he has zero grasp on his government – and follows no moral compass.”

“The public now recognise the Tories as the party of tax evasion, caught red-handed helping their cronies to the public purse for private gain.”

Zahawi had been slapped with a penalty for failing to file his taxes properly.

The news first surfaced during his short tenure as Chancellor of the Exchequer from July to September 2022, but his past tax affairs had come under scrutiny again more recently.

In July 2022, the Independent reported that Zahawi’s tax affairs were under investigation by Her Majesty’s Revenue and Customs (HMRC).

More recently, the Sun newspaper reported that the former Chancellor, now Tory Party Chairman, had paid “several million” to “settle a dispute with HMRC” about whether he had used an offshore company called Balshore Investments to hold shares in YouGov, the polling company he co-founded with help from his father in 2000 and retired from in 2010.

Balshore is registered in Gibraltar and has been linked to Zahawi’s family, but Zahawi denies setting it up or using it.

Zahawi came to an agreement with HMRC after it found he was “careless” with his tax return.

According to HMRC, being “careless” with your tax return means “a failure to take reasonable care in relation to your tax affairs”.