Connect with us

Features

Overall climate of sleaze

Published

on

By Michael Patrick O’Leary

When asked about Conservative Party chairman Nadhim Zahawi’s £5 million payment to HMRC (His Majesty’s Revenue and Customs) by Labour MP Alex Sobel at prime minister’s questions (PMQs) on Wednesday, January 18, Rishi Sunak said his “honourable friend” had already addressed the matter in full, and there was nothing more Sunak could add. Nothing to see, move on. At prime minister’s questions on Wednesday January 25, 2023, Sunak’s line was that he had passed the matter on to Sir Laurie Magnus, his ethics advisor, for a full investigation so he was not able to discuss it. Move on.

Magnus found that Zahawi breached the ministerial code on seven separate occasions by repeatedly failing to declare his tax affairs. Magnus also decided that Zahawi had lied to the media by denying that he was under investigation by HMRC. Subsequently, he failed to correct the record.At PMQs on February 1, Sunak dodged jibes that the whole world knew about Zahawi’s tax dodging but he appointed him anyway.

Vigilante Man

Within hours of my article on this issue being published in the Sunday Island last week, Rishi Sunak sacked Nadhim Zahawi. I will not claim the sole credit for that. If any one man can claim credit for the toppling of Zahawi it is Dan Neidle. Who he? Neidle is a retired tax lawyer. Neidle spotted an item in the Independent newspaper which aroused his interest. The report claimed that Zahawi had been the subject of an investigation by the National Crime Agency, the Serious Fraud Office and HMRC.

Neidle started digging at Companies House and elsewhere and found that Zahawi was linked to a Gibraltar-based company called Balshore Investments, which held shares in YouGov, the polling firm Zahawi founded in 2000. Balshore was owned by a trust controlled by Zahawi’s parents. Balshore Investments held the founder shares in YouGov, which normally Zahawi would have received himself. Balshore had made a £99,000 gift to Zahawi out of its YouGov dividends — direct evidence that he benefited from the trust. Because Balshore was based in Gibraltar, about £24 million of gains on its YouGov shares, plus dividends, went completely untaxed.

Neidle also discovered that around the same time, Zahawi’s UK property business had received £26 million of unsecured loans from an undisclosed source. Neidle’s theory was that Zahawi did not want to be taxed on profits from his YouGov shares, so he put them in the company owned by his parents’ trust; he still regarded them as his assets, so he accessed the cash through gifts and (unsecured) loans. Neidle knew that “there are half-a-dozen tax rules designed to stop this sort of thing.” Neidle surmised, accurately as it turned out, that there was approximately £3.7 million in tax that Zahawi should have paid.

SLAPP in the Face

Neidle published his findings on his Tax Policy Associates website on July 10 and posted a thread on Twitter. He posted further findings on July 13. On July 16, he received a message from a libel partner at Osborne Clarke, who wanted to speak “off the record”. Later that day Osborne Clarke sent an email demanding that Neidle retract his allegation of “dishonesty” that same day and said that if he published the email there would be “serious consequences”.

The term SLAPP (strategic lawsuit against public participation) refers to a lawsuit issued with the intention of scaring off critics and publishers. Neidle is clearly no shrinking violet. On July 22, he alerted the SRA (Solicitors Regulation Authority) to the fact that Osborne Clarke were sending secret libel letters. On November 29, the SRA sent out a general note warning solicitors to stop sending libel letters that falsely claim to be confidential.

Neidle thinks that the libel issue is the most important in this case. He told Times Radio, “I had no idea that a senior politician could say things that were just not true and threaten to take legal action on that basis.” Neidle was not one to be cowed. “Zahawi and his advisers made the tactical mistake of accidentally SLAPPing someone with plenty of financial resources, time, litigation experience, and plenty of contacts and friends in the legal, tax and media worlds. I’m sure Zahawi spent a small fortune on advisers — but my team would probably have cost ten times as much (had they charged me). Goliath accidentally started a fight with a bigger Goliath.”

This is a government of bullies, con men and liars. Bad news about the deputy prime minister, “randomly rude Raab”, continues to surface.

Incompetence at the Heart of the British State

HMRC insiders said major blunders had led to its releasing incorrect information. Officials say the department failed to reveal to the Financial Times in response to a query that Zahawi was under investigation because they did not do a broad enough search. HMRC now admits that it failed to properly look into the issue. The organization responsible for collecting the nation’s taxes was too incompetent to answer a basic question.

The HMRC investigation into Zahawi began in April 2021, and he had a meeting with officials in June 2021. Did they fail to make it clear that he was under investigation? Zahawi told Magnus that he had failed to realize it was a formal investigation. Magnus said he should have realized it was an investigation and treated it as a “serious matter”. It looks as though Zahawi may have started negotiating a settlement with HMRC while he was chancellor, from July 5 to September 6, 2022. That is a monstrous conflict of interest. It is unbelievable that Sunak knew nothing about this. Every journalist in London knew that the man responsible for the nation’s taxes had paid a huge fine for tax dodging.

Careless People

Zahawi’s tried to downplay the HMRC’s fine by saying that they had not criticized him harshly because they said his “error” was “careless and not deliberate”. This is disingenuous on Zahawi’s part as he must be aware (as a successful businessman who was briefly chancellor of the exchequer) that HMRC are using technical terms. They are not absolving him in any way. If they had judged that his offence was deliberate the penalty would have been even higher. By any normal standards Zahawi’s efforts to avoid tax were premeditated and persistent not accidental.Zahawi was careless back in 2013 when he got caught up in the MPs’ expenses scandal and “apologized unreservedly” after it was reported that he claimed £5,822 expenses for electricity for his riding school stables and a yard manager’s mobile home.

A joint investigation by Open Democracy, Source Material and the Times has revealed further murky financial dealings by Zahawi. Crowd2Fund was set up by Chris Hancock, the brother of Zahawi’s political ally Matt Hancock (who was health secretary responsible for Covid restrictions until he was caught breaking the rules himself by snogging in his office) and has benefited from political decisions. It was, for instance, one of ten companies selected to take part in a Treasury and Department of International Trade programme aimed at giving fintech businesses the chance to profit from the Australian market.

One of Zahawi’s most significant moves in his brief period as chancellor was to introduce legislation to further deregulate financial services. He claimed the Financial Services and Markets Bill would “unleash growth” by replacing EU laws with “agile” regulation for the UK. That seems like a careful move to protect his own profits. This is not just carelessness.

The Zahawi affair gave Keir Starmer the opportunity to embarrass Sunak by referring to his own family’s tax affairs. Sunak’s wife, Akshata Murty, has £700m worth of shares in Infosys, the Indian tech company founded by her father. These have earned her tens of millions of pounds in dividends in recent years. In April last year, it was revealed that Murty saved millions of pounds while living in No 11 by using non-dom status to minimize her tax bill. News has just broken that Infosys is in dispute with HMRC over a corporation tax bill of about £20m.These are people who are careless about the sufferings of others but who take great care to maximize their profits.

Lack of Trust

A survey conducted by pollsters Omnisis, found that 65% of British voters now agree with the statement that Rishi Sunak’s party is “institutionally corrupt”, with just 18% disagreeing. Just 31% say the same of the Labour Party. Omnisis found that 72% also agreed with the statement that senior members of the Conservative party are “more interested in personal gain than serving the public” with just 16% disagreeing.

Sunak’s basis of support was and is shaky. His political skills are meagre and he has few allies. He appointed some dodgy characters in order to become leader and has clung on to some of them in a doomed attempt to unify the party. One of his dodgy allies is Dominic Raab, who is unlikely to survive the report into allegations of bullying against him. Starmer made strong challenges on this at this week’s PMQs and will continue the attack in coming weeks.



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Features

Proactive peacemaking becomes a paramount need

Published

on

Wasting wars: Some war-displaced people in Lebanon. BBC

It may be some time before the full impact of food inflation is felt in the West. Until such time the world would continue to keep itself in suspense over whether the Trump administration is in earnest when it seeks to convey the impression that it is backing a negotiated solution in West Asia.

As is usually the case, consumer stress would be one of the final determinants of political change. To the degree to which the average US consumer somehow ‘muddles through’ and puts the food on the table, to the same extent would the Republican sections of the US public in particular be tolerant of the Trump administration’s inconsistent handling of the West Asian war and the main issues stemming from it. That is, there would be no grave popular disaffection and a demand for political change in the short term.

However, the indications are that the Trump administration’s support base is suffering some erosion in the wake of the current economic crisis. While reports indicate that Democratic sections are firming-up their opposition to the political centre, Republican support for Trump is also showing signs of waning, we are given to understand.

The above developments are probably why Trump is on record as having given Israeli Prime Minister Benjamin Netanyahu a ‘dressing down’ recently on his seeming intransigence on the question of giving negotiations a chance in West Asia. The show of displeasure could be really aimed by Trump at containing the impatience of the American public.

However, the current ground situation in the Middle East, particularly the uncontained bloodshed, is likely to impress on the thinking sections of the world that more than temporary political change is needed in West Asia and the US.

A well thought out political solution that addresses all the contentious issues at the heart of the Middle East conflict is what enlightened opinion would demand, and very rightly. Right now, the ‘peace efforts’ initiated by the Trump administration give the impression of being piecemeal solutions at best.

There have been, of course, numerous initiatives in the past aimed at bringing permanent peace to the Middle East. These failed mainly because they did not address in full the root causes of the conflict.

At bottom the Middle East conflict is mainly about race and religious hate bred by socio-economic and material inequalities. For instance, if the Palestinian people were not displaced and deprived of land occupied by them at the time of the founding of the Israeli state, ethnic enmities would not have grown to the current unmanageable proportions.

When addressing the above questions, though, it must be remembered that the Israelis too were a displaced people who were entitled to land and a state of their own in the Middle East. Basically, out of these seemingly irreconcilable and conflicting demands have grown the Middle East imbroglio.

Middle East peace is considerably about reconciling these demands and arriving at a solution that would ensure the creation of two states that would opt for peaceful co-existence thereafter.

As long as the US does not see the need for a non-partisan solution that addresses the needs of both ethnicities and religions and goes all-out, as it were, to have it implemented, the Middle East would continue to bleed.

However, staunching the blood flow through the creation of two states would be only half the job done, though a very important part of it. More pernicious, pervasive and difficult to remedy are the inter-ethnic and inter-religious hatreds that have been unleashed over the decades.

However, if substantial, long-lasting peace is to be fostered in the region the latter ‘demons’ would need to be exorcised from the hearts and minds of the communities concerned. No doubt an uphill task but one that must be undertaken by those who wish the region well.

The UN would need to put its ‘best foot forward’ in such undertakings but it is time that it dawned on the international community and other caring quarters that Middle East peace, and all other such uphill challenges, require proactive peacemaking on the part of all civilized sections for their effective management. That is, public involvement in peacemaking too is a must.

Since hatreds are harboured in the human consciousness the enmities embedded in the latter need to be managed and defused judiciously alongside other undertakings in a peace process. In the case of West Asia, such enmities could be even spread globe-wide besides being multi-dimensional. For instance, it ought to be thought-provoking that Iran is insistent on a peace initiative that would also include Lebanon.

Besides security considerations it is also ethnic and religious affiliations that account for Iran making this demand. For instance, the Shias are a numerically important religious community in Lebanon and they provide a significant number of Hizbollah fighters, who are in a vital sense carrying out a ‘proxy war’ for Iran. It also needs to be factored in that Iran is a Shia-majority country.

Thus trans-border religious affiliations could add to the complexities and enormity of ethno-religious conflicts. However, the task of managing centuries-long enmities needs to be launched and prodded on with by peacemakers since a downing of arms alone would not guarantee substantive peace.

It is not realized sufficiently that the process of ending hatreds begins with mutual apologies by antagonists to a conflict for the harm inflicted on each other. This would be anathema in some ears but there is no getting away from the requirement. It is the vital first step to permanent peace anywhere.

In fact there could be no reconciliation worth speaking of without such mutual apologies. It is a point worth re-iterating in these times when even the government of Sri Lanka is voicing the need for national reconciliation. Well, without the words, ‘I am sorry’, there could be no permanent end to enmities – they would do well to remember.

The above requirements may not go down very well with governments, but they resonate in the hearts and minds of most people, since they are inheritors of religious traditions of some kind.

This is a principal reason why peacemaking works well when publics too are involved in them. The effectiveness of such campaigns increases several fold when they have a Mahatma Gandhi or a Jawaharlal Nehru at their helm. A strong proactive involvement by the public in peace could lead to the emergence of such leaders at some point in these campaigns.

Continue Reading

Features

Dialog Brings Sri Lanka’s Largest Digital Vesak Experience to Matara

Published

on

From left to right: Hon. Saroja Savithri Paulraj, Hon. Sunil Handunnetti, and Lasantha Theverapperuma experience the Dialog 5G Ultra-powered VR tours.

Official Digital Partner of the 2026 ‘Dakshina Prabha’ National Vesak Zone

Dialog Axiata PLC, Sri Lanka’s #1 connectivity provider, collaborated with the Ministry of Buddha Sasana, Religious and Cultural Affairs to bring one of Sri Lanka’s largest and most technologically advanced Vesak experiences to the ‘Dakshina Prabha’ National Vesak Zone. The three-day celebration, in Matara attracted more than hundred thousand visitors, who engaged with a series of innovative digital activities powered by Dialog 5G Ultra, including Artificial Intelligence (AI) and Virtual Reality (VR) experiences, digital pandols and a Data Dansala. The opening ceremony was attended by Hon. Sunil Handunnetti, Minister of Industry and Entrepreneurship Development and Hon. Saroja Savithri Paulraj, Minister of Women and Child Affairs, along with distinguished guests and Dialog’s senior management.

One of the key attractions at the venue was the Dialog 5G Ultra-powered Virtual Reality (VR) experience, which attracted more than 35,000 participants. The activation enabled devotees to virtually visit and pay homage to sacred Buddhist sites, including the Jaya Sri Maha Bodhi in India and the Atamasthana in Anuradhapura, directly from the Vesak zone in Matara.

Visitors receive complimentary mobile data through Dialog’s QR-powered Data Dansala.

Dialog also conducted an AI Digital Vesak Greeting Card Competition from 21 May to 01 June 2026, attracting numerous entries from across the country. The shortlisted designs were showcased across 20 large LED screens throughout the venue and across Matara City, and were also made available for download via mobile devices. Further, through the use of AI, traditional Jathaka Katha were reimagined in a digital format, demonstrating how technology can be used to preserve and enhance cultural and religious heritage. Together, these initiatives blended traditional Vesak celebrations with emerging technologies, offering visitors a unique and immersive way to engage with Vesak traditions.

 Extending the spirit of Vesak through connectivity, Dialog conducted a special Data Dansala powered by its QR Reload platform, enabling visitors to receive complimentary mobile data by scanning QR codes placed across the venue. In addition to the Matara National Vesak Zone, similar Data Dansala activations were also conducted at the Gangaramaya and Bauddhaloka Vesak zones in Colombo.Visitors also had the opportunity to create personalised Vesak-themed digital photos through an AI Photo Booth, generating AI-enhanced portraits using their own photographs and adding a contemporary digital element to the Vesak celebrations.

Visitors watch AI-generated Jathaka Katha

Commenting on the initiative, Hon. Sunil Handunnetti, Minister of Industry and Entrepreneurship Development, said, “The 2026 Dakshina Prabha Vesak Festival marked the first time AI-powered digital innovations were incorporated into a National Vesak Festival in Sri Lanka. Presenting Buddhist stories and teachings through technology created a new and engaging way for visitors to connect with these traditions. We thank Dialog for supporting this initiative and for working closely with us to bring our vision to life. Their contribution played an important role in making this first-of-its-kind event a reality.”

 Lasantha Theverapperuma, Group Chief Marketing Officer of Dialog Axiata PLC said, “We thank the Government of Sri Lanka for the opportunity to support the 2026 Dakshina Prabha National Vesak Festival and for embracing technology as part of this year’s celebrations. As the Official Digital Partner, we were privileged to contribute through our Dialog 5G Ultra and AI capabilities, creating new ways for visitors to engage with Vesak traditions while preserving their cultural significance for future generations.”

Beyond supporting the National Vesak Zone in Matara, Dialog also enhanced the Gangaramaya and Bauddhaloka Vesak zones through a range of digital activations during the Vesak season. The company additionally continued its sustainability initiatives, including the Thirasara Aloka Poojawa, which illuminated rural places of worship through solar-powered lighting solutions.

Continue Reading

Features

Beauty, elegance and talent…for women

Published

on

Universal Woman is an international pageant focused on “beauty, elegance, and talent” for women, positioning itself as a platform to shape global ambassadors. The 2026 edition will be held in Cambodia, and Sri Lanka will be there, as well.

According to reports coming my way, contestants, at the international event, will work with industry trailblazers, under international standards.

Sri Lankan supermodel, runway and pageant trainer Chulpadmendra Kumarapathirana, is the National Director for Universal Woman Sri Lanka 2026.

With over two decades in the industry, Chula was crowned Miss Sri Lanka 2006, and has since shaped the next generation of titleholders through her Colombo-based Chulpadmendra Catwalk Studio, widely regarded as one of the country’s leading modelling academies.

The team behind Universal Woman Sri Lanka 2026

A former host of Derana Miss Sri Lanka for Miss World 2008 and a judge for Miss Universe Sri Lanka 2025, Chula now serves as National Director for Universal Woman Sri Lanka 2026, leading the franchise’s search for Sri Lanka’s delegate to the international final in Cambodia.

Applications for Universal Woman Sri Lanka 2026 are being taken, via WhatsApp: 077 659 4994, says Chula.

The judging panel for Universal Woman Sri Lanka 2026 includes Senaka De Silva, Pageant Aesthetic Advisor & Chairperson of the Judging Panel, Angela Seneviratne, Caroline Jurie, Rozelle Plunkett, and Suraj Mapa.

Universal Woman Sri Lanka 2026 officially began its journey with a first round of auditions, held in Colombo, marking the start of an exciting new chapter in Sri Lanka’s pageant industry.

Launching the first round of auditions

The platform aims to empower women while selecting an intelligent, confident, and inspiring representative to compete at the Universal Woman International Pageant 2026 in Cambodia, this September.

Universal Woman Sri Lanka now moves forward with the vision of creating one of the country’s most prestigious and empowering pageants while preparing to crown a queen who will proudly represent Sri Lanka on the international stage.

Continue Reading

Trending