CNN
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UK Prime Minister Rishi Sunak faced pressure on Sunday to fire Conservative Party chairman Nadeem Zahawi, who faced criticism over his personal tax arrangements.
Sunak last week ordered Zahawi to investigate, saying they had paid fines as part of a 4.8 million pound ($5.96 million) settlement with tax authorities. It is said that Zehawi did not declare the dispute with the tax authorities.
Zahawi was appointed Chancellor of the Exchequer by former Prime Minister Boris Johnson in July last year. He remained in the cabinet, which was replaced by Johnson’s successor, Liz Truss, and his replacement, Sunak, as party chairman.
“It is clear that there was a serious violation of the ministerial code,” Sunak said in a letter to Zahawi after the investigation concluded.
“Therefore, I have informed you of my decision to remove you from His Majesty’s authority.”
Reports of Zahawi’s multi-million pound dealings with tax authorities have shocked Britons, many of whom are struggling to survive a cost-of-living crisis.
The opposition Labor Party said Sunak, who came to office with “integrity, professionalism and accountability at every level”, should have sacked Zahawi when the claims first emerged this month instead of trying to buy time by launching an investigation.
Senior Labor lawyer Bridget Phillipson told Sky News the scandal exposed Sunak as a “weak” leader.
“The stench of scandal hangs around the Conservative Party,” she says.
Sunak himself has been investigated over the tax arrangements of his wife Akshata Murthy, the daughter of an Indian billionaire. Last year, Sunak and Murthy appeared in the Sunday Times Rich List of the UK’s 250 richest people – the newspaper estimated their combined fortune at £730 million ($826 million).
Last year, Murty was revealed to have obtained “non-resident” status in the UK, meaning she could legally avoid paying UK tax on her overseas income from her family’s Infosys business group.
He apologized for not wearing a seat belt while riding in a car after receiving a second police fine last week. Chancellor Sunak has been fined by the police along with Johnson for attending lock-breaking parties on UK government grounds.
In his resignation letter published on Sunday, Zahawi said it had been the privilege of his life to serve in successive UK governments. He did not make any clear reference to the findings of the ethical research on the tax issues.
“I escaped persecution and arrived in this country without speaking English. Here, I built a successful business and served in some of the highest government offices. In my opinion, I believe that my story is not possible in any other country on earth,” the statement read.
Zahawi was born in Iraq to Kurdish parents and came to England as a child when his family fled Saddam Hussein’s regime. He is believed to be one of the richest politicians in the House of Commons, and helped found polling company YouGov.