The Cash for Questions Scandal
MPs face full inquiry into sleaze (15th October 1996)A wide-ranging investigation increased the pressure on the Conservative Government in the "cash-for-questions" affair. Opposition leaders served notice that they would press for the inquiry to investigate allegations that David Willetts, a former Government whip, tried to influence Parliament's first attempt to investigate the allegations two years ago.
Miss Boothroyd assured MPs that "all the necessary steps" would be taken to ensure that Sir Gordon Downey, the Parliamentary Commissioner for Standards, would have all the facilities and staff he needed.
Her decision reflected the growing concern on both sides of the Commons that the reputation of MPs generally is being undermined by the flurry of renewed allegations that Neil Hamilton, the former Tory Trade Minister, accepted cash from Mohammed Fayed, the owner of Harrods, in return for tabling Parliamentary questions.
The Speaker left open the possibility that the committee and Sir Gordon could investigate the role played by Mr Willetts, now a minister in the Cabinet Office. A leaked memorandum suggested that in 1994 Mr Willetts, then a Government whip, had approached the chairman of the now-defunct Member's Interests Committee, Sir Geoffrey Johnson-Smith, about the possibility of "exploiting the good Tory majority" on the committee to ensure the issue was dealt with as quickly as possible.
The Guardian newspaper makes two allegations against John Major (22nd March 1997).
- That Tim Smith was appointed a junior Northern Ireland Minister in January 1994 despite Government whips being aware that he had admitted accepting payments worth up to £25,000 from Mohamed Fayed and not declared them.
- That Mr Major allowed Mr Smith to remain in the Government for 10 days after Mr Smith had told Sir Robin Butler, the Cabinet Secretary, that he had taken the money.
Charge One: The Guardian bases this allegation on the transcript of Mr Smith's evidence to Sir Gordon Downey. Mr Smith was asked exactly when he terminated his relationship with Mr Fayed and whether he had any contemporaneous record to prove it.
He said: "All I have is that, and the fact that I went to see the Chief Whip and the fact that I informed the chairman of my Conservative Association of what had been going on at that time."
Charge Two: The Guardian alleges that Mr Major was told of the allegations in September 1994 but allowed Mr Smith to remain a minister despite confirmation on Oct 17 that he had taken the money. He was forced to resign only after The Guardian ran the story on Oct 20.
Two MP's Accussed in 'Cash for Questions' Row
(22nd March 1997).
At the heart of the controversy are two Conservative MPs, Tim Smith and
Neil Hamilton.
Tim Smith, MP for Beaconsfield, is said to have accepted £18,000 - some in bundles of £50 notes - from Mr Fayed to act as a parliamentary consultant. He did not initially declare his interest, and it is said he tabled parliamentary questions on Mr Fayed's behalf.
Mr Smith was appointed a junior minister for Northern Ireland in January 1994, but resigned in October of that year after the Guardian published allegations of "cash for questions" against him. Mr Smith is said to have told his Chief Whip that he received the money before he was appointed a minister. Mr Smith admitted declaring the payment late, but denied impropriety.
Neil Hamilton, MP for Tatton, is alleged to have taken £10,000 commissions from Mr Greer and money and free hospitality in Paris from Mr Fayed without declaring them either to the register of Members' interests or the tax authorities.
Mr Hamilton, Minister for Corporate Affairs from 1992 to 1994, denied dishonesty, said he had paid tax on all taxable income and he has accused the Guardian of lying.
Also accused of accepting money and not declaring interests are Michael Brown, MP for Cleethorpes; Sir Andrew Bowden, MP for Brighton, Kemptown; and Sir Michael Grylls, MP for Surrey North-West. The three Tory MPs have admitted receiving money but have denied impropriety, according to the Guardian.
Hamilton found guilty of taking cash
(3rd July 1997).
These totalled thousands of pounds from Mohamed Fayed, the owner of Harrods. After months of leaks and speculation, the damning report from Sir Gordon Downey, the Parliamentary Commissioner for Standards. Sir Gordon also accused Tim Smith, Sir Andrew Bowden, Sir Michael Grylls, and Michael Brown of failing to declare or register interests. Mr Smith, who stood down as a Tory candidate shortly before the election, was said to have fallen "well below" the standards expected.
The criticisms are so strong that all five would have faced disciplinary action. Mr Smith and Mr Hamilton would probably have been expelled from the Commons had Sir Gordon's conclusions been published before the election.
The report was kept under wraps until yesterday as it was not completed until after Parliament prorogued for the election. Labour accused the Tories of getting Parliament up early to prevent publication - a charge denied at the time by John Major.
The evidence that Mr Hamilton had received cash payments directly from Mr Fayed in return for lobbying services was "compelling". The amount was unknown but was unlikely to have been less than the £18,000-£25,000 received by Mr Smith.
"The way in which these payments were received and concealed fell well below the standards expected of MPs," Sir Gordon said. He also censured Mr Hamilton for "deliberately" misleading Michael Heseltine, then President of the Board of Trade, about his financial relationship with Mr Greer when he had received two payments from him totalling £10,000 in 1988 and 1989.
Sir Gordon observed of Mr Hamilton's attitude to registering his interests: "There is a general obligation on Members to the effect: 'If in doubt, register'. Mr Hamilton seems to have adopted the opposite principle and, if in doubt, gave himself the benefit of it."
The report found that Mr Smith, a former junior Northern Ireland minister, had "persistently and deliberately" failed to declare his interests in House of Fraser. It also accused him of a "disingenuous attempt" at concealment of his financial interests.