Now Hunt faces MPs’ watchdog after admitting breach of money laundering rules
Jeremy Hunt was referred to the parliamentary standards watchdog last night after breaching antimoney laundering rules. The Health Secretary, who has a personal fortune of more than £14 million, failed to declare his ownership of a company he set up to buy seven luxury flats.
mr Hunt failed to report his 50 per cent stake in the property firm to Companies House – a criminal offence punishable by a fine or up to two years in prison. He also failed to disclose his stake in the firm on the Parliamentary register of members’ interests within the specified 28 days.
However, mr Hunt has not breached the ministerial Code of Conduct, according to Cabinet Office rules, and so retains the backing of Theresa may.
He later corrected both errors, which he said were his responsibility and apologised to the parliamentary authorities. He said it was a mistake by his accountant and he did not profit or benefit from it.
yet mr Hunt now faces investigation by the Commons’ committee on standards and privileges, which polices the conduct of mPs. Labour said his actions represented a ‘serious breach’ and the party has had referred him to the Parliamentary Commissioner for Standards.
Labour Cabinet Office spokesman Jon Trickett said: ‘ This is simply unacceptable and especially so given the Secretary of State’s position at the heart of Theresa may’s Government.
‘mr Hunt’s actions fall outside of the principles of the code, namely integrity, accountability, openness and honesty. The rules make it clear: members “must submit themselves to whatever scrutiny is appropriate to their office”. It seems this has not happened.’ A No 10 spokesman said: ‘Jeremy has rightly apologised for an administrative oversight, and as the Cabinet Office have made clear, there has been no breach of the ministerial code. We consider the matter closed.’ But a former watchdog on mPs’ behaviour said if mr Hunt did not ‘face consequences’ for the mistake, it could create a perception of double standards for politicians and the public. Sir Alistair Graham, the former chairman of the committee on standards in public life, told The Daily Telegraph: ‘It is a very poor show when ministers, who you expect to take leadership in standards and public life, do not meet the rules they are required to meet.
‘If there has been a failure of leadership, there should be a political price for it. either in terms of the damage to your reputation or to action by the Prime minister in the case of the minis- terial code, or by the committee on standards.’
The error was spotted by Dr Alex may, a member of the public, who said: ‘I’m quite shocked that he has blamed his accountant. It’s a reputable accountancy firm that he uses.’
mr Hunt’s breaches relate to seven flats he bought with mortgages in the Ocean Village complex in Southampton in February. The average price paid for properties in the development is £240,000, according to Zoopla.
The mortgages were issued by a private bank to mare Pond Properties Ltd, a company set up by mr Hunt and his wife Lucia Guo, who was the only person named in the registration documents filed at Companies House when the company was incorporated.
mr Hunt appears to have breached the Companies Act on two counts. First, he should have declared to Companies House he was a ‘person with significant control’ within 28 days of registering the company. The second breach relates to the fact that mr Hunt’s name was omitted from the registration document.
mr Hunt’s spokesman said: ‘These were honest administrative mistakes which have already been rectified. Jeremy’s accountant made an error in the Companies House filing which was a genuine oversight. Although there was no personal gain involved, Jeremy accepts these mistakes are his responsibility and has apologised to the parliamentary authorities.’
‘There should be a political price’