Zahawi’s legal tactics ‘not up to scratch’

Beleaguered chairman’s bid to suppress inquiries into tax affairs ‘not what public would expect’

The chairman of the committee on standards in public life has criticised Nadhim Zahawi’s use of lawyers in an attempt to push back on inquiries into his tax affairs. Lord Evans, the former boss of MI5, said that Mr Zahawi’s behaviour had gone against principles that include integrity and leadership. It comes as former Cabinet ministers and senior Tory figures broke ranks to call on their chairman to quit after he admitted paying a penalty over “errors” in his tax affairs.

THE chairman of the committee on standards in public life has criticised Nadhim Zahawi’s use of lawyers in an attempt to push back on inquiries into his tax affairs. Lord Evans, the former boss of MI5, said in an interview that Mr Zahawi’s behaviour had gone against the Nolan Principles, which include integrity and leadership.

It comes as former Cabinet ministers and senior Tory figures broke ranks to call on their chairman to quit after he admitted paying a penalty over “errors” in his tax affairs, which were deemed “careless but not deliberate” by HMRC.

It has emerged Mr Zahawi threatened The Independent three times with legal action when asked for his response to inquiries by the National Crime Agency and HMRC. Lawyers acting on his behalf have also sent letters to Dan Neidle, a former Magic Circle lawyer and Labour activist who has spent months on his own investigations into him.

Asked about the row yesterday, Lord Evans told BBC Radio 4’s PM programme: “If you’re trying to close down a legitimate public debate, I don’t think that lives up to the standards Lord Nolan laid down and which the Government has committed itself to. Accountability [and] openness are things which the Government says that it wants to be characterising its own behaviour, so that I think speaks for itself. The sort of attempts, apparent legal attempts to suppress this story…i don’t think that does live up to the sort of standards that the public would rightly expect.”

Allies of Mr Zahawi, whose spokesman declined to comment on the peer’s remarks, have always insisted there was no deliberate wrongdoing on his part.

He has said he will stay in his post during an investigation by Sir Laurie Magnum, the Prime Minister’s independent ethics adviser. Caroline Nokes, the women and equalities committee chairman, yesterday became the first backbencher in Mr Zahawi’s own party to publicly say he should resign, telling the BBC he should “stand aside until this matter is all cleared up”.

The Daily Telegraph has talked to a number of senior backbenchers including ones who, like Mr Zahawi, have helped run Conservative Central Headquarters in recent years.

One former vice-chairman said: “Something doesn’t seem right. I just think it might be better if he stepped aside until the issue is resolved.”

Another added: “What an absolute car crash. It’s very damaging to have all this stuff in the headlines. Can he stay in post? I’m afraid I think he has to go.”

There are also fears the ongoing row over Mr Zahawi’s tax affairs, which is into its tenth day, would come as a “gift” to Sir Keir Starmer at Prime Minister’s Questions today, with the Labour leader likely to raise it in his weekly Commons showdown with Rishi Sunak. Yesterday, Downing Street said Sir Laurie’s investigation should be carried out “swiftly” but that there was no timeline or date by which it should be completed, meaning it could potentially run for months.

Asked if Mr Sunak was confident Mr Zahawi had always told the truth to him about his taxes, his official spokesman said: “The investigation looks at any potential breaches of the ministerial code. As you’ll know, I won’t get into being prescriptive about how the advice goes about ascertaining that.”

Several former Cabinet ministers have told The Telegraph the time had come for Mr Zahawi to stand down.

One described the situation as “terminal” and another said he had “been fatally wounded by this”.

Another senior backbencher said: “It is a gift to Labour. Nadhim is so gifted, but this undermines a lot of his good work.”

But one MP who is supportive of Mr Zahawi took aim at a “witch hunt culture”, saying: “Politics isn’t fair, and those who want to pursue him won’t give up.”