Conservative Party chairman Nadhim Zahawi has been sacked after an investigation by the prime minister's ethics advisor Sir Laurie Magnus concluded a "serious breach of the Ministerial Code".
Rishi Sunak had asked Sir Laurie, who has a home in Bungay, to investigate following reports that former chancellor Mr Zahawi had paid a penalty as part of a dispute with HMRC over his tax affairs.
And, in a letter to the prime minister, Sir Laurie told Rishi Sunak that certain "omissions" by Mr Zahawi fell short of the standards set out in the ministerial code.
In his report, dated January 29, Sir Laurie wrote: "Given the nature of the investigation by HMRC, which started prior to his appointment as secretary of state for education on September 15, 2021, I consider that by failing to declare HMRC’s ongoing investigation before July 2022 – despite the ministerial declaration of interests form including specific prompts on tax affairs and HMRC investigations and disputes – Mr Zahawi failed to meet the requirement to declare any interests which might be thought to give rise to a conflict."
Sir Laurie added: "I also conclude that, in the appointments process for the governments formed in September 2022 and October 2022, Mr Zahawi failed to disclose relevant information – in this case the nature of the investigation and its outcome in a penalty – at the time of his appointment, including to Cabinet Office officials who support that process.
"Without knowledge of that information, the Cabinet Office was not in a position to inform the appointing prime minister.
"Taken together, I consider that these omissions constitute a serious failure to meet the standards set out in the ministerial code.
"I consider that Mr Zahawi, in holding the high privilege of being a minister of the Crown, has shown insufficient regard for the general principles of the ministerial code and the requirements in particular, under the seven principles of public life, to be honest, open and an exemplary leader through his own behaviour," he concluded.
In a letter to Mr Zahawi, Mr Sunak said that, following the investigation, which completed its work after only a few days, "it is clear that there has been a serious breach of the ministerial code".
The letter said: "Following the completion of the independent adviser’s investigation – the findings of which he has shared with us both – it is clear that there has been a serious breach of the ministerial code.
"As a result, I have informed you of my decision to remove you from your position in His Majesty’s Government.
Mr Sunak and his government had faced questions for several days about the row, with growing pressure on Mr Zahawi, minister without portfolio, to stand aside.
Sir Laurie, who is also the chairman of Historic England, was appointed as Mr Sunak's ethics advisor last month.
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