Nadhim Zahawi

2.1. Birth and Family Background

Zahawi was born on 2 June 1967 in Baghdad, Iraq, into a distinguished Kurdish family. His paternal grandfather, Nadhim al-Zahawi, held significant governmental roles in Iraq, serving as the Governor of the Central Bank of Iraq from 1959 to 1960 and as the Minister of Trade. His father, Hareth Nadhim Al Zahawi, born in 1942, is a British-Iraqi businessman who established the Al-Zahawi Group. Following the 2003 invasion of Iraq, this group secured a lucrative contract to provide logistics, cleaning, and support services to the new US-led interim government. The company, now known as IPBD (Iraq Project and Business Development), has expanded its interests to include steel manufacturing and property development, generally supporting the reconstruction efforts in Iraq. Zahawi's father is also a director of Balshore Investments Ltd, a company based in Gibraltar.

2.2. Flight to the UK and Settlement

When Nadhim Zahawi was eleven years old, his family fled Iraq and sought refuge in the United Kingdom due to the rise to power of Saddam Hussein. This significant event marked a pivotal moment in his formative years, leading to their settlement in the UK.

2.3. Education

Zahawi received his secondary education in London, attending Holland Park School, followed by Ibstock Place School, and then King's College School in Wimbledon, London. He pursued higher education at University College London, where he successfully earned a Bachelor of Science (BSc) degree in chemical engineering in 1988.

3.1. Early Business Ventures and YouGov Founding

In the 1990s, Zahawi was a part-owner of Allen (Hinckley) Ltd, a Nuneaton-based company specializing in licensed clothing manufacturing. This company produced apparel featuring designs from various popular brands, including Warner Bros., 1998 FIFA World Cup, and the Teletubbies. The prominent Conservative politician Jeffrey Archer invested substantial six-figure sums in the company, eventually acquiring one-third ownership. However, by December 1998, the company faced collapse, accumulating millions in debt and resulting in the loss of approximately 100 jobs. Zahawi openly acknowledged this setback in 2010, stating, "There's a company I have set up and failed in Allen (Hinckley) Ltd. I don't hide my failures."

Following his tenure as European Marketing Director for Smith & Brooks Ltd, Zahawi co-founded the international Internet-based market research firm YouGov in 2000 alongside Stephan Shakespeare. He served as YouGov's Chief Executive Officer (CEO) from 2005 until February 2010.

3.2. Other Business and Financial Interests

In 2008, Zahawi became a non-executive director of SThree, a specialist staffing organization, a position from which he stepped down in October 2017. During his tenure in 2014, he received 2.92 K GBP per month for this role.

In November 2013, reports emerged that Zahawi, a year after becoming a Member of Parliament, used Berkford Investments Limited, a company based in the low-tax British overseas territory of Gibraltar, as a mortgage lender. This arrangement financed the purchase of his constituency home, the 'Oaklands' riding stables estate in Upper Tysoe, near Stratford-upon-Avon, which was valued at 875.00 K GBP at the time. Berkford Investments Limited is managed by T&T Management Services Limited, a firm that offers wealth management services. Zahawi responded to these reports by asserting that he had paid stamp duty on his property and had always done so for his property purchases. He stated that the details of the mortgage from the Gibraltar company were fully declared on the Land Registry and that any suggestion of using offshore entities to reduce his tax burden was incorrect.

In 2015, Zahawi joined Gulf Keystone Petroleum, an oil and gas exploration and production company, as a part-time Chief Strategy Officer. His work for the company between 2015 and 2017 earned him at least 1.30 M GBP, making him the second-highest earning Member of Parliament in the UK in 2017 from various roles.

In early 2017, it was reported that Zahawi had invested 25.00 M GBP in purchasing property around London for both personal and commercial use. He stated that his primary focus remained his constituency work and that his business activities would not interfere with his parliamentary duties. In May 2024, he was appointed as the Non-Executive Chairman of The Very Group.

3.3. Tax Affairs and Controversies

Nadhim Zahawi's tax arrangements have been a recurring source of controversy and public scrutiny throughout his career. In July 2022, it was revealed that despite being a co-founder of YouGov, Zahawi did not receive founder shares directly. Instead, he arranged for these shares to be allocated to a Gibraltar-based company owned by an offshore trust controlled by his parents. Zahawi denied that this arrangement was motivated by tax avoidance. He initiated libel proceedings against tax lawyer Dan Neidle for allegations that his denials of tax avoidance were untruthful. During the 2022 Conservative leadership contest, Zahawi dismissed questions about his taxes as smears.

In January 2023, it was reported that Zahawi had agreed to pay a penalty to HM Revenue and Customs (HMRC) in connection with his tax affairs. Zahawi stated that HMRC had accepted that an error in his tax affairs was "careless and not deliberate" and affirmed that he had "never set up an offshore structure, including Balshore Investments," and was not its beneficiary. However, Jim Harra, chief executive of HMRC, explained that carelessness is a concept in tax law that can lead to penalties, implying that innocent errors do not incur penalties. Reports indicated that Zahawi paid a seven-figure penalty to HMRC over these tax irregularities.

Further questions arose regarding an unsecured loan of approximately 30.00 M GBP to Zahawi & Zahawi, a UK property company owned by his wife. Prem Sikka, a Labour peer and accounting professor, highlighted the lack of explanation in the accounts regarding the source of these loans, calling for further clarity from the ethics adviser. Tax lawyer Dan Neidle also expressed concern over the public's lack of knowledge about the origin of these substantial unsecured loans.

4.1. Early Political Activities

Zahawi's political engagement began in 1991 when he served as an aide to Conservative politician Jeffrey Archer, alongside fellow British-Kurd Broosk Saib. They assisted Archer during his "Simple Truth" campaign, which aimed to aid Kurdish victims of the Gulf War. Archer reportedly nicknamed Zahawi and Saib "Lemon Kurd" and "Bean Kurd." In 1994, Archer supported Zahawi's campaign for a seat on Wandsworth London Borough Council. Zahawi also managed Archer's unsuccessful campaign for Mayor of London in 1998.

Zahawi was elected as a Conservative councillor in Putney within the London Borough of Wandsworth, serving three terms from 1994 to 2006. In the 1997 United Kingdom general election, he stood as the Conservative candidate for Erith and Thamesmead, finishing second with 20.2% of the vote.

4.2. Parliamentary Career

Zahawi's parliamentary journey began with his election as a Member of Parliament for Stratford-on-Avon, where he actively engaged in policy and constituency work.

4.2.2. Parliamentary Activities and Stances

In October 2013, Zahawi became a member of the Number 10 Policy Unit. Later that month, as a member of the Business, Innovation and Skills Committee, he questioned Lazard, the government's independent adviser on the sale of Royal Mail, following reports that the company was underpriced. In November 2013, Zahawi apologized after it was reported that he had claimed expenses for electricity used to power the stables on his private estate.

In 2015, while still on the Business Select Committee, Zahawi took a firm stance during questioning of Post Office Limited CEO Paula Vennells regarding the subpostmasters mediation scheme, describing her handling of it as "a shambles." His involvement in this inquiry later led to a cameo appearance as himself in the 2024 ITV drama, Mr Bates vs The Post Office.

Zahawi served as vice-chair of the All Party Parliamentary Group (APPG) on Kurdistan Region in Iraq. This group received secretarial support from Gulf Keystone Petroleum International, an oil company where Zahawi held the position of Chief Strategy Officer. This connection raised concerns about potential conflicts of interest and how MPs' independence might be compromised by such links between APPGs and private companies.

He was a vocal supporter of Brexit, advocating for Britain's withdrawal from the European Union. He argued that the EU was unwilling to change its rules and that the United Kingdom should reclaim control over various policy areas. In 2019, a member of his staff was listed as an administrator of the secretive transatlantic group Le Cercle in the Parliamentary Register of Interests, though Zahawi had not declared his own membership.

In October 2020, Labour MP Tulip Siddiq accused Zahawi of misleadingly suggesting that research from a holiday food and activities club pilot scheme indicated parents preferred to pay a modest amount for meals rather than receive free school meals, during a debate on extending free school meals over school holidays.

4.3. Ministerial Appointments and Roles

Zahawi's progression through various government positions saw him take on increasingly significant responsibilities.

4.3.3. Secretary of State for Education

On 15 September 2021, Zahawi was promoted to Secretary of State for Education in a cabinet reshuffle, succeeding Gavin Williamson. He was sworn in as a member of the Privy Council of the United Kingdom on 20 September 2021 at Balmoral Castle, which granted him the honorific prefix "The Right Honourable" for the duration of his membership.

During the COP26 conference in 2021, Zahawi announced a new youth award scheme aimed at tackling climate change, drawing parallels to The Duke of Edinburgh's Award. This initiative encouraged pupils to enhance their schools' biodiversity through actions like installing bird feeders, with young people receiving a new Climate Leader's Award for their environmental efforts, culminating in an annual nationwide ceremony.

In 2022, Zahawi developed guidance on accommodating transgender pupils, with input from the then attorney-general, Suella Braverman. He suggested that schools could permit children to use lavatories and changing facilities corresponding to their gender identity, provided these facilities were not in use by others. However, Braverman publicly disagreed with this approach. Zahawi also criticized a school where a female pupil faced abuse, including swearing and spitting, and was forced to leave without completing her A-levels after she critically questioned a speaker during a talk on transphobia in October 2021. Zahawi described the incident as "hugely concerning" and "unacceptable."

4.4. Leadership Candidacies

Zahawi made two attempts to become leader of the Conservative Party during a period of significant political upheaval.

On 9 July 2022, Zahawi announced his candidacy in the July-September 2022 Conservative Party leadership election to succeed Boris Johnson. His platform focused on a plan to "steady the ship and to stabilise the economy" by reviving low-tax Thatcherism. He received an endorsement from former Northern Ireland Secretary Brandon Lewis, who praised his ability to "deliver and get things done." During this leadership contest, allegations surfaced that Zahawi was under investigation by HMRC, following an inquiry reportedly launched by the National Crime Agency in 2020. Zahawi denied awareness of any investigation by the Serious Fraud Squad, the National Crime Agency, or HMRC, dismissing the claims as smears. On 13 July 2022, Zahawi was eliminated from the contest after failing to secure the required support of 30 Members of Parliament to advance to the next round. He subsequently endorsed Liz Truss in the election.

Following Truss's resignation in October 2022, Zahawi initially declared his support for Boris Johnson's leadership bid, stating, "I'm backing Boris. He got the big calls right...Britain needs him back. We need to unite to deliver on our manifesto." Minutes after Johnson announced he would not be running, an article by Zahawi titled "Get ready for Boris 2.0, the man who will make the Tories and Britain great again" was published by The Telegraph. This article was subsequently deleted, and hours later, Zahawi announced his support for Rishi Sunak.

4.5. Ministerial Code Breaches and Dismissal

Zahawi's tax arrangements once again garnered significant public attention in January 2023, leading to widespread scrutiny of his previous statements and correspondence with journalists. In response, the Prime Minister requested Laurie Magnus, the Independent Adviser on Ministers' Interests, to investigate Zahawi's personal financial arrangements and declarations.

Magnus's report, published on 29 January 2023, identified **seven breaches** of the Ministerial Code by Zahawi. The Prime Minister dismissed Zahawi immediately following the report's findings. Zahawi's public reply to his dismissal did not acknowledge the breaches or include an apology.

The investigation found that Zahawi had failed to declare the HMRC investigation to his permanent secretary and had not disclosed it in his ministerial declaration of interests. Furthermore, he failed to disclose this investigation to Prime Ministers Boris Johnson, Liz Truss, and Rishi Sunak. In July 2022, Zahawi had publicly stated that "There have been news stories over the last few days which are inaccurate, unfair and are clearly smears." Magnus concluded that Zahawi's failure to correct this statement until January 2023 was "inconsistent with the requirement for openness" expected of ministers.

4.6. Post-Government Career and Retirement from Parliament

Following his dismissal from government, Zahawi returned to the backbenches as a Member of Parliament. In April 2023, he was reselected as the Conservative candidate for the next general election. However, in November 2023, David Spencer resigned from the executive of Zahawi's local Conservative Association, intending to challenge him in the upcoming election. On 9 May 2024, Zahawi officially announced his decision to retire from Parliament and not seek re-election at the next general election.

5.1. Family and Personal Interests

Nadhim Zahawi married Lana Saib in 2004, and together they have three children. He is an avid rider and show jumper, a passion he shares with his wife, with whom he co-owns and operates a riding school. Zahawi is also a member of the private members' club Soho House.

5.2. US Travel Ban Experience

In January 2017, Zahawi publicly shared his personal experience of being affected by then-US President Donald Trump's Executive Order 13769, which banned travelers from several Muslim-majority countries. Despite being a British citizen, Zahawi, who was born in Iraq, found himself unable to enter the United States. The ban also impacted his wife, preventing him from visiting his children who were attending university in the US.

Zahawi strongly condemned the policy, urging the UK not to ignore its implications. He argued that the travel ban, coupled with then-Prime Minister Theresa May's reluctance to condemn it, inadvertently fueled support for the Islamic State in Iraq and other nations.

5.3. Presidents Club Dinner Attendance Controversy

In January 2018, media reports revealed Zahawi's attendance at a controversial men-only dinner event organized by the Presidents Club at the Dorchester Hotel in London. Reports alleged that female hostesses at the event were subjected to sexual harassment, including groping and inappropriate touching. Following these revelations, Zahawi issued a statement on Twitter unequivocally condemning such behavior and expressing his discomfort with what he witnessed. He also pledged never to attend such a men-only function again. However, opposition politicians, including the Shadow Secretary of State for Education, Angela Rayner, called for Zahawi to resign from his ministerial position. Their criticism stemmed from his failure to report his concerns about unlawful behavior at the event to the police, and the fact that he had attended the event on multiple previous occasions.

6.1. Major Achievements and Positive Contributions

In his business career, Zahawi is widely recognized as a co-founder of YouGov, a successful international market research firm, demonstrating his entrepreneurial acumen. In government, his most widely praised contribution was his leadership as the first Parliamentary Under-Secretary of State for COVID-19 Vaccine Deployment. In this role, he played a crucial part in the rapid and effective rollout of the UK's COVID-19 vaccination program, a key initiative in the national response to the pandemic. His efforts in this capacity were seen as a major success in public health. As Secretary of State for Education, he also initiated the Climate Leader's Award, encouraging youth engagement in environmental protection.

6.2. Criticisms and Controversies

Zahawi's career has been significantly overshadowed by recurrent criticisms regarding his financial affairs and adherence to ministerial standards, raising questions about public trust and governance. Key controversies include:

• Tax Affairs and Financial Transparency:** Allegations that he used an offshore trust in Gibraltar to hold founder shares in YouGov, avoiding a substantial tax liability, have been a persistent source of scrutiny. Despite his claims that any error was "careless and not deliberate" and that he had paid a seven-figure penalty to HMRC, the lack of full transparency and the use of offshore entities drew considerable criticism. Further questions arose regarding the source of a large unsecured loan to his wife's property company. These issues led to public demands for greater accountability and ethical clarity.
• Ministerial Code Breaches:** The most significant controversy culminated in his dismissal from government in January 2023. An independent investigation found that Zahawi had committed seven breaches of the Ministerial Code, primarily by failing to disclose an ongoing HMRC investigation into his tax affairs to his permanent secretary and to successive prime ministers (Boris Johnson, Liz Truss, and Rishi Sunak). His public denial of these investigations, which he later retracted, was deemed inconsistent with the required openness for ministers. This breach highlighted concerns about integrity and probity at the highest levels of government.
• Presidents Club Dinner Attendance:** His attendance at a men-only charity dinner in 2018, where female hostesses allegedly faced sexual harassment, drew widespread condemnation. Although Zahawi condemned the reported behavior and pledged not to attend such events again, critics argued his prior attendance and failure to report concerns to authorities demonstrated a lapse in judgment and accountability for a public official.

These criticisms collectively reflect on Zahawi's legacy, emphasizing the importance of financial transparency, adherence to ethical guidelines, and maintaining public trust for those in positions of power within British politics.