MINISTER’S FAMILY FIRM SUES TENANTS
Zahawi investment outfit chases skint traders for thousands
MILLIONAIRE minister Nadhim Zahawi is facing fury as his family property firm hounds people left penniless by the pandemic.
The Education Secretary’s family investment firm has ordered court action against small business owners for unpaid rent – even though the Tories say they should get time to pay.
A dry cleaner, barber and kebab seller are among traders who could be slapped with county court judgments preventing them starting a new business or getting a mortgage.
Barber Jafar Jahromi, 56, was sent a court summons demanding £35,000.
He says: “You’d think the family of a minister would be the first to understand this. There is no compassion.
“They don’t care about Covid. They care about their money – even if it means dragging us to court.”
Ex-vaccines minister Mr Zahawi, 54, co-founded Zahawi & Zahawi but quit when he became a minister in 2018. His 50% stake was transferred to his wife, who uses her maiden name Lana Jamil Saib on company documents. Their two sons are listed as directors.
Zahawi & Zahawi paid £12million for the Guildhall Buildings in Birmingham in 2019, where at least four tenants have had summonses. Among them is Deborah Brown, 53, whose drycleaning business was decimated by the pandemic. She was unable to pay her £5,400 per quarter rent after annual takings fell to £10,000. She is being chased for £36,000 and says: “I haven’t taken any wages for myself. I haven’t been able to sell the business.
It’s been horrific. Instead of understanding the suffering and strain, I’ve been letters demanding cash. ”
Urban Feast kebab shop owner Zaheer Ahmad, 47, and wife Jaan, 43, got a summons for £46,751. He said: “It’s hard enough to survive as it. We haven’t got the money to pay – it’s as simple as that.”
James Green and Daniel Craig – who opened Hush Hair in 2006 – have been sent a claim for £130,000 for three units at Guildhall Buildings. Mr Green, 42, said: “How are we meant to find this – down the back of the sofa? The PM goes on about building back better. But his own minister’s family are acting like debt collectors.” Last month, the Government announced a code of practice ahead of planned law changes that would ringfence businesses’ Covid debts.
Mr Zahawi is MP for Stratfordupon-Avon. He, his wife and their companies have a £100million-plus portfolio. They own five homes worth at least £17m – three in London, one in Warwickshire, one in Dubai.
Sherwood Wheatley represents Zahawi & Zahawi. Solicitor David Hawkins said: “My client has been and continues to be sympathetic and understanding to the position of its tenants affected by the pandemic. It was not until
August 2021 it instructed solicitors to seek payment of arrears back to March 2020. It has been able to reach agreement with some tenants and hopes to reach agreement with all tenants, in accordance with the government code of practice.”
A government spokesman said the new code of practice aims to “encourage negotiation” with tenants “in respect of rent debts built up as a result of the pandemic”.
Tom Kennedy, an adviser at Mr Zawahi’s Department for Education, said: “Nadhim has no involvement with
the business.”