Cash-for-questions affair
Encyclopedia
The "Cash-for-questions affair" was one of the biggest political scandals of the 1990s in the United Kingdom
.
It began in October 1994 when The Guardian
newspaper alleged that London's most successful parliamentary lobbyist, Ian Greer of Ian Greer Associates, had bribed two Conservative
Members of Parliament in exchange for asking parliamentary questions, and other tasks, on behalf of the Egyptian owner of Harrods
department store, Mohamed Al-Fayed
.
and Tim Smith
to table parliamentary questions on his behalf at £2000 per question. Smith resigned immediately after admitting to accepting payments from Al-Fayed himself, but not from Ian Greer as The Guardian alleged.
Hamilton and Greer immediately issued libel writs in the High Court against The Guardian to clear their names.
The furore prompted Prime Minister John Major to instigate the Nolan Committee
, to review the issue of standards in public life.
Six weeks later in December 1994, in a private letter to the chairman of the Parliamentary watchdog the Members' Interests Committee, Mohamed Al-Fayed alleged that he had paid Hamilton, in addition to the original allegations that Ian Greer was the paymaster. Hamilton denied this new allegation.
The Defamation Bill 1996 was designed to alter the Bill of Rights 1689
and allows an MP to waive his Parliamentary privilege. This would allow Mr Hamilton to give evidence in court on statements he made in Commons.
Two years later, in the last days of September 1996, three days before Hamilton's and Greer's libel actions were due to start, three of Mohamed Al-Fayed's employees claimed that they had processed cash payments to the two men. Hamilton and Greer denied these new allegations.
Hamilton and Greer withdrew their libel action on 30 September 1996.
Hamilton's and Greer's withdrawal of their libel actions provoked an avalanche of condemnation of the two men in the British Press, led by The Guardian. Parliament initiated an official inquiry into the affair to be led by Sir Gordon Downey
.
In December The Times
reported the collapse of Ian Greer's lobbying company.
In early 1997 Downey began his inquiry, but before he published his report Prime Minister
John Major
prorogued Parliament for a general election
to be held on 1 May 1997.
Smith resigned from Parliament on 25 March and said he would not contest the next general election.
In the election former BBC reporter Martin Bell
stood in Hamilton's Cheshire constituency of Tatton
as an independent candidate on an "anti-corruption" platform. Bell easily defeated Hamilton with the assistance of the Labour Party
and the Liberal Democrats
who both withdrew their candidates and supplied party workers to help Bell's campaign.
In early July 1997 Sir Gordon Downey published his 900 page report, clearing Ian Greer, Neil Hamilton, and Tim Smith of The Guardians original allegations that Ian Greer had paid the two MPs to table questions. However, Downey decreed that the three Fayed employees' testimony that they had processed cash payments to Hamilton amounted to "compelling evidence", though he did not accept their claims to have processed cash payments to the lobbyist Greer.
At the same time Standards and Privileges Committee published its conclusions in relation to complaints made by The Guardian and Mr Mohamed Al Fayed which concluded:
documentary programme broadcast in January 1997. In late 1999 the trial began at the High Court. Hamilton lost and was ordered to pay costs.
Two months later, in February 2000, The Mail on Sunday
reported that shortly before Hamilton's libel action Mohamed Al-Fayed had acquired reams of privileged legal papers stolen from the chambers of Hamilton's barristers. Hamilton immediately lodged an appeal against his libel defeat.
In late 2000 Hamilton's appeal was heard at the Court of Appeal. The three judges dismissed Hamilton's appeal on the grounds that Fayed's acquisition of the stolen papers would not have materially affected the outcome of the trial.
In 2001 Neil Hamilton declared bankruptcy.
reported that two Conservative MPs Graham Riddick
and David Treddinick
had accepted cheques for £1,000 for agreeing to table a parliamentary question.
The two were suspended from Parliament for 10 and 20 days respectively, Mr Riddick receiving a shorter 'sentence' due to his apparent decision to apologise
quickly and return his cheque bribe
.
Riddick lodged a formal complaint with the Press Complaints Commission
(PCC). Basing its decisions on the information compiled by the Commons’ Privileges Committee the PCC found in Mr Riddick’s favour. The Commission judged that The Sunday Times failed to make clear to its readers that its approach to Mr Riddick had been on the basis of a legitimate consultancy, not on the basis of a one-off payment in return for asking a question and that there was no justification for the newspaper’s resort to subterfuge. This overturned a ruling two years earlier by the PCC in favour of The Sunday Times when Mr Riddick had been unaware that the PCC was investigating the matter. The PCC apologized to Mr Riddick for ‘this serious breach of our procedures.’
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
.
It began in October 1994 when The Guardian
The Guardian
The Guardian, formerly known as The Manchester Guardian , is a British national daily newspaper in the Berliner format...
newspaper alleged that London's most successful parliamentary lobbyist, Ian Greer of Ian Greer Associates, had bribed two Conservative
Conservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...
Members of Parliament in exchange for asking parliamentary questions, and other tasks, on behalf of the Egyptian owner of Harrods
Harrods
Harrods is an upmarket department store located in Brompton Road in Brompton, in the Royal Borough of Kensington and Chelsea, London. The Harrods brand also applies to other enterprises undertaken by the Harrods group of companies including Harrods Bank, Harrods Estates, Harrods Aviation and Air...
department store, Mohamed Al-Fayed
Mohamed Al-Fayed
Mohamed Abdel Moneim Al-Fayed is an Egyptian businessman and billionaire. Amongst his business interests are ownership of the English Premiership football team Fulham Football Club, Hôtel Ritz Paris and formerly Harrods Department Store, Knightsbridge...
.
Overview
The Guardians story alleged that Al-Fayed had approached the paper and accused Ian Greer of paying Neil HamiltonNeil Hamilton (politician)
Mostyn Neil Hamilton is a former British barrister, teacher and Conservative MP. Since losing his seat in 1997 and leaving politics, Hamilton and his wife Christine have become media celebrities...
and Tim Smith
Tim Smith (UK politician)
Timothy John Smith, known as Tim Smith, is a former British Conservative politician.-Politics:...
to table parliamentary questions on his behalf at £2000 per question. Smith resigned immediately after admitting to accepting payments from Al-Fayed himself, but not from Ian Greer as The Guardian alleged.
Hamilton and Greer immediately issued libel writs in the High Court against The Guardian to clear their names.
The furore prompted Prime Minister John Major to instigate the Nolan Committee
Committee on Standards in Public Life
The Committee on Standards in Public Life is an advisory non-departmental public body of the United Kingdom Government.The Committee on Standards in Public Life is constituted as a standing body with its members appointed for up to three years.-History:...
, to review the issue of standards in public life.
Six weeks later in December 1994, in a private letter to the chairman of the Parliamentary watchdog the Members' Interests Committee, Mohamed Al-Fayed alleged that he had paid Hamilton, in addition to the original allegations that Ian Greer was the paymaster. Hamilton denied this new allegation.
The Defamation Bill 1996 was designed to alter the Bill of Rights 1689
Bill of Rights 1689
The Bill of Rights or the Bill of Rights 1688 is an Act of the Parliament of England.The Bill of Rights was passed by Parliament on 16 December 1689. It was a re-statement in statutory form of the Declaration of Right presented by the Convention Parliament to William and Mary in March 1689 ,...
and allows an MP to waive his Parliamentary privilege. This would allow Mr Hamilton to give evidence in court on statements he made in Commons.
Two years later, in the last days of September 1996, three days before Hamilton's and Greer's libel actions were due to start, three of Mohamed Al-Fayed's employees claimed that they had processed cash payments to the two men. Hamilton and Greer denied these new allegations.
Hamilton and Greer withdrew their libel action on 30 September 1996.
Hamilton's and Greer's withdrawal of their libel actions provoked an avalanche of condemnation of the two men in the British Press, led by The Guardian. Parliament initiated an official inquiry into the affair to be led by Sir Gordon Downey
Gordon Downey
Sir Gordon Downey was Britain's first Parliamentary Commissioner for Standards.The Office of the Parliamentary Commissioner for Standards was set up by the House of Commons of the United Kingdom in 1995 as a result of recommendations made by the Committee on Standards in Public Life...
.
In December The Times
The Times
The Times is a British daily national newspaper, first published in London in 1785 under the title The Daily Universal Register . The Times and its sister paper The Sunday Times are published by Times Newspapers Limited, a subsidiary since 1981 of News International...
reported the collapse of Ian Greer's lobbying company.
In early 1997 Downey began his inquiry, but before he published his report Prime Minister
Prime minister
A prime minister is the most senior minister of cabinet in the executive branch of government in a parliamentary system. In many systems, the prime minister selects and may dismiss other members of the cabinet, and allocates posts to members within the government. In most systems, the prime...
John Major
John Major
Sir John Major, is a British Conservative politician, who served as Prime Minister of the United Kingdom and Leader of the Conservative Party from 1990–1997...
prorogued Parliament for a general election
General election
In a parliamentary political system, a general election is an election in which all or most members of a given political body are chosen. The term is usually used to refer to elections held for a nation's primary legislative body, as distinguished from by-elections and local elections.The term...
to be held on 1 May 1997.
Smith resigned from Parliament on 25 March and said he would not contest the next general election.
In the election former BBC reporter Martin Bell
Martin Bell
Martin Bell, OBE, is a British UNICEF Ambassador, a former broadcast war reporter and former independent politician...
stood in Hamilton's Cheshire constituency of Tatton
Tatton (UK Parliament constituency)
- Elections in the 1990s :- Elections in the 1980s :- Sources :* Data for the 2005 election are from the .* Data for the 2001 election are from http://www.election.demon.co.uk/....
as an independent candidate on an "anti-corruption" platform. Bell easily defeated Hamilton with the assistance of the Labour Party
Labour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...
and the Liberal Democrats
Liberal Democrats
The Liberal Democrats are a social liberal political party in the United Kingdom which supports constitutional and electoral reform, progressive taxation, wealth taxation, human rights laws, cultural liberalism, banking reform and civil liberties .The party was formed in 1988 by a merger of the...
who both withdrew their candidates and supplied party workers to help Bell's campaign.
In early July 1997 Sir Gordon Downey published his 900 page report, clearing Ian Greer, Neil Hamilton, and Tim Smith of The Guardians original allegations that Ian Greer had paid the two MPs to table questions. However, Downey decreed that the three Fayed employees' testimony that they had processed cash payments to Hamilton amounted to "compelling evidence", though he did not accept their claims to have processed cash payments to the lobbyist Greer.
At the same time Standards and Privileges Committee published its conclusions in relation to complaints made by The Guardian and Mr Mohamed Al Fayed which concluded:
- Michael BrownMichael Brown (UK politician)Michael Russell Brown is a British former Conservative Party politician and is now a newspaper and broadcast political journalist. He was a Member of Parliament from 1979 to 1997.-Biography:...
- "Mr Brown failed to register an introduction payment from Mr Greer in relation to US Tobacco."
- "Mr Brown persistently and deliberately failed to declare his interests in dealing with Ministers and officials over the Skoal Bandits issue."
- "Mr Brown has expressed regret for these omissions."
- Sir Peter HordernPeter HordernSir Peter Maudslay Hordern, D.L., P.C., is a British Conservative Party politician.Hordern was educated at Geelong Grammar School, Australia and Christ Church, Oxford. He served with the 60th Rifles, 1947–49, joining the regiment of his father and great uncle : Brig...
- He had no obligation to disclose to Ministers the interests of his colleagues
- Although the extent to which he declared his own interests on House of Fraser matters fell well short of the terms of the 1974 Resolution, there is no evidence that Ministers and officials were misled by this
- The spirit of the rules would have been better observed had Sir Peter made a separate Register entry in respect of Mr Al Fayed's hospitality, but this omission was not improper by the standards accepted at the time
- The allegation that Sir Peter tabled questions for cash is without substance and has been withdrawn
- Sir Andrew BowdenAndrew BowdenSir Andrew Bowden , is a British Conservative Party politician.Bowden was educated at Ardingly College and subsequently became a sales executive. He served as a councillor on Wandsworth Borough Council 1956-61 and national chairman of Young Conservatives 1960-61...
:
- There is insufficient evidence to substantiate the allegation that Sir Andrew received, or demanded, cash payments from Mr Al Fayed in return for lobbying services.
- The election donation of £5,319 from Mr Greer was intended as a reward for lobbying and Sir Andrew probably knew it came originally from Mr Al Fayed.
- Sir Andrew failed to register, as he should have done, this election campaign donation.
- Sir Andrew failed to declare his interests in dealings with Ministers and officials over House of Fraser, and, in one case, gave a positively misleading explanation for his representations.
- Sir Michael GryllsMichael GryllsSir William Michael John Grylls, known as Michael Grylls, was a British Conservative politician. He was implicated in the cash-for-questions affair, a poitical scandal of the 1990s...
- Sir Michael received payments from Mr Greer (though not in cash) which were neither introduction commissions nor fees associated with the Unitary Tax Campaign.
- It is not possible to conclude that these payments originated from Mr Al Fayed, although Sir Michael actively participated in the Greer lobbying operation.
- Sir Michael deliberately misled the Select Committee on Members' Interests in 1990 by seriously understating the number of commission payments he had received; and by omitting to inform them of other fees received from Mr Greer.
- Sir Michael persistently failed to declare his interests in dealings with Ministers and officials over the House of Fraser.
- Sir Michael's action in taking a commission payment for introducing a constituent to Mr Greer was unacceptable.
- There is insufficient evidence to show that Sir Michael solicited business for Mr Greer in expectation of commission payments.
- Mr Tim SmithTim Smith (UK politician)Timothy John Smith, known as Tim Smith, is a former British Conservative politician.-Politics:...
- Mr Smith accepted cash payments directly from Mr Al Fayed of between £18,000 and £25,000 in return for lobbying services. There is no evidence to indicate that he received cash from Mr Al Fayed indirectly through Mr Greer.
- The way in which these payments were received and concealed fell well below the standards expected of Members of Parliament.
- The allegation that Mr Smith was paid to initiate an Adjournment debate in 1986 is not substantiated.
- Mr Smith's financial interest in relation to House of Fraser was only registered in January 1989 when it had been publicly exposed by Mr Rowland; and then only hesitantly for a period of two and a half weeks. This has to be seen as a disingenuous attempt at concealment. On any view, this was a totally unacceptable form of registration by Mr Smith.
- Mr Smith persistently and deliberately failed to declare his interests in dealings with Ministers and officials over House of Fraser issues.
- To his credit, Mr Smith eventually admitted receiving payments, although not until he was asked in 1994; and he expressed his regrets for the non-registration and non-declaration of interests."Smith accepted cash payments directly from Mr Al Fayed of between £18,000 and £25,000 in return for lobbying services...persistently and deliberately failed to declare his interests in dealings with Ministers and officials over House of Fraser issues... Mr Smith's conduct fell seriously below the standards which the House is entitled to expect ... had he still been a Member we would recommend a substantial period of suspension from the service of the House"
Hamilton vs Al-Fayed
In 1998 Neil Hamilton issued a writ for libel against Mohamed al-Fayed, over allegations that Al-Fayed had made on a Channel 4Channel 4
Channel 4 is a British public-service television broadcaster which began working on 2 November 1982. Although largely commercially self-funded, it is ultimately publicly owned; originally a subsidiary of the Independent Broadcasting Authority , the station is now owned and operated by the Channel...
documentary programme broadcast in January 1997. In late 1999 the trial began at the High Court. Hamilton lost and was ordered to pay costs.
Two months later, in February 2000, The Mail on Sunday
The Mail on Sunday
The Mail on Sunday is a British conservative newspaper, currently published in a tabloid format. First published in 1982 by Lord Rothermere, it became Britain's biggest-selling Sunday newspaper following the closing of The News of the World in July 2011...
reported that shortly before Hamilton's libel action Mohamed Al-Fayed had acquired reams of privileged legal papers stolen from the chambers of Hamilton's barristers. Hamilton immediately lodged an appeal against his libel defeat.
In late 2000 Hamilton's appeal was heard at the Court of Appeal. The three judges dismissed Hamilton's appeal on the grounds that Fayed's acquisition of the stolen papers would not have materially affected the outcome of the trial.
In 2001 Neil Hamilton declared bankruptcy.
Riddick and Treddinick
Though the term "cash for questions affair" is used to refer to the events that followed the publication of The Guardians story, it was not the first time that a British newspaper had accused MPs of taking bribes to table questions. Three months earlier, in July 1994, a 'sting' operation by The Sunday TimesThe Sunday Times (UK)
The Sunday Times is a Sunday broadsheet newspaper, distributed in the United Kingdom. The Sunday Times is published by Times Newspapers Ltd, a subsidiary of News International, which is in turn owned by News Corporation. Times Newspapers also owns The Times, but the two papers were founded...
reported that two Conservative MPs Graham Riddick
Graham Riddick
Graham Edward Galloway Riddick was the Conservative Party Member of Parliament for Colne Valley in West Yorkshire, England from 1987 to 1997.-Family and early life:...
and David Treddinick
David Tredinnick (politician)
David Arthur Stephen Tredinnick is a Conservative politician in the United Kingdom.He is a former officer in the Grenadier Guards and is Member of Parliament for Bosworth first elected in 1987....
had accepted cheques for £1,000 for agreeing to table a parliamentary question.
The two were suspended from Parliament for 10 and 20 days respectively, Mr Riddick receiving a shorter 'sentence' due to his apparent decision to apologise
Non-apology apology
A non-apology apology is a statement in the form of an apology but that is not in fact an apology at all. It is common in both politics and public relations...
quickly and return his cheque bribe
Bribery
Bribery, a form of corruption, is an act implying money or gift giving that alters the behavior of the recipient. Bribery constitutes a crime and is defined by Black's Law Dictionary as the offering, giving, receiving, or soliciting of any item of value to influence the actions of an official or...
.
Riddick lodged a formal complaint with the Press Complaints Commission
Press Complaints Commission
The Press Complaints Commission is a voluntary regulatory body for British printed newspapers and magazines, consisting of representatives of the major publishers. The PCC is funded by the annual levy it charges newspapers and magazines...
(PCC). Basing its decisions on the information compiled by the Commons’ Privileges Committee the PCC found in Mr Riddick’s favour. The Commission judged that The Sunday Times failed to make clear to its readers that its approach to Mr Riddick had been on the basis of a legitimate consultancy, not on the basis of a one-off payment in return for asking a question and that there was no justification for the newspaper’s resort to subterfuge. This overturned a ruling two years earlier by the PCC in favour of The Sunday Times when Mr Riddick had been unaware that the PCC was investigating the matter. The PCC apologized to Mr Riddick for ‘this serious breach of our procedures.’