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Cash-for-questions affair
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==Overview== ''[[The Guardian]]'''s report alleged that Al-Fayed had approached the paper and accused Ian Greer of paying then-MPs [[Neil Hamilton (politician)|Neil Hamilton]] and [[Tim Smith (British politician)|Tim Smith]] to table parliamentary questions on his behalf at £2,000 a time.<ref name=claim/> Smith resigned immediately after admitting to accepting payments from Al-Fayed himself, but not from Greer as ''The Guardian'' had alleged.<ref>{{cite news|url=https://www.independent.co.uk/news/tim-smith-does-the-decent-thing-1275195.html|title=Tim Smith does the decent thing|newspaper=The Independent|date=27 March 1997|accessdate=8 March 2010 | location=London | first=Christian | last=Wolmar}}</ref> Hamilton and Greer immediately issued libel writs in the [[High Court of Justice|High Court]] against ''The Guardian'' to clear their names.<ref name=liar>{{cite news|url=https://www.theguardian.com/uk/1996/oct/01/hamiltonvalfayed.davidhencke|title=A liar and a cheat – Disgraced former minister and lobbyist abandon £10m case at last minute|newspaper=The Guardian|date=8 March 2010|accessdate=8 March 2010 | location=London | first=David | last=Hencke}}</ref> The furor prompted the then-prime minister [[John Major]] to instigate the [[Nolan Committee]], to review the issue of standards in public life.<ref>{{cite news|url=https://www.independent.co.uk/news/uk/the-attack-on-sleaze-nolan-committee-expected-to-look-at-outside-interests-1445481.html|title=The Attack on Sleaze: Nolan committee expected to look at outside interests|newspaper=The Independent|date=24 October 1994|accessdate=8 March 2010 | location=London | first=Donald | last=MacIntyre}}</ref> 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.{{Citation needed|date=March 2010}} The [[Defamation Act 1996]] was designed to alter the [[Bill of Rights 1689]], and allows an MP to waive parliamentary privilege. This would have permitted Hamilton to give evidence in court concerning statements he made in the [[House of Commons of the United Kingdom|House of Commons]].<ref name=dates/><ref>{{cite journal|title='Only Flattery is Safe': Political Speech and the Defamation Act 1996| doi=10.1111/1468-2230.00087|volume=60| issue=3|journal=Modern Law Review|pages=388–393|year = 1997|last1 = Williams|first1 = Kevin}}</ref> Two years later, at the end 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.<ref>{{Cite news |title=Ian Greer, lobbyist - obituary |url=https://www.telegraph.co.uk/news/obituaries/12001034/Ian-Greer-lobbyist-obituary.html?onwardjourney=584162_v1 |access-date=2023-02-02 |newspaper=The Telegraph}}</ref> Hamilton and Greer withdrew their libel action on 30 September 1996.<ref name=dates>{{cite news|url=http://news.bbc.co.uk/1/hi/uk_politics/196466.stm|title=UK Politics: Talking Politics – Neil Hamilton – A chronology|work=BBC News|accessdate=8 March 2010 | date=19 October 1998}}</ref> 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 of the United Kingdom of Great Britain and Northern Ireland|Parliament]] initiated an official inquiry into the affair, to be led by Sir [[Gordon Downey]].<ref name=dates/> In December 1996, Ian Greer's lobbying company collapsed.<ref name="indy1996"/> Downey began his inquiry in early 1997, but before he published his report Prime Minister John Major [[Prorogation Act 1867|prorogued]] Parliament for [[1997 United Kingdom general election|a general election]], to be held on 1 May 1997.<ref>Jonathan Boyd Hunt, ''Trial by Conspiracy: Story of How Mohamed Al-Fayed and "The Guardian" Put an Innocent Man in the Dock - and Why'' p.29, Greenzone Publishing, October 1998 {{ISBN|0473051230}}</ref> Smith resigned from Parliament on 25 March, and stood down in the general election.<ref>{{cite news|url=https://www.independent.co.uk/news/uk/politics/tim-smith-thrust-back-to-obscurity-1275235.html|accessdate=14 May 2017|title=Tim Smith Thrust Back to Obscurity|date=1997-03-27|newspaper=The Independent}}</ref><ref>{{cite news|url=https://www.theguardian.com/uk/1999/dec/22/hamiltonvalfayed|newspaper=Guardian|accessdate=14 May 2017|title=Chronology - How the scandal unfolded|date=1999-12-22|author=Guardian Staff}}</ref> In the election, former BBC reporter [[Martin Bell]] stood in Hamilton's Cheshire constituency of [[Tatton (UK Parliament constituency)|Tatton]] as an independent candidate on an "anti-corruption" platform. Bell easily defeated Hamilton with the assistance of the [[Labour Party (UK)|Labour Party]] and the [[Liberal Democrats (UK)|Liberal Democrats]], who both withdrew their candidates and supplied party workers to help Bell's campaign.<ref>J. B. Hunt, ''Trial by Conspiracy'' p.31, Greenzone Publishing, October 1998</ref> Sir Gordon Downey published his 900-page report in early July 1997, clearing Ian Greer, [[Neil Hamilton (politician)|Neil Hamilton]], and [[Tim Smith (British politician)|Tim Smith]] of ''The Guardian'''s 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.<ref>J. B. Hunt, ''Trial by Conspiracy'' p.311, Greenzone Publishing, October 1998</ref> At the same time, the [[Standards and Privileges Committee]] published its conclusions in relation to complaints made by ''The Guardian'' and Mohamed Al Fayed, which concluded:<ref>{{cite web|url=https://publications.parliament.uk/pa/cm199798/cmselect/cmstnprv/240vii/sp0703.htm|title=COMPLAINTS FROM MR MOHAMED AL FAYED,THE GUARDIAN AND OTHERS AGAINST 25 MEMBERS AND FORMER MEMBERS |publisher=Parliament |accessdate=8 March 2010}}</ref> ===Standard and Privileges Committee Report=== ====[[Michael Brown (British politician)|Michael Brown]]==== {{quote|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 Hordern (politician)|Peter Hordern]]==== {{quote|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 Bowden]]==== {{quote|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 Grylls]]==== {{quote|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 Smith (British politician)|Tim Smith]]==== {{quote|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.}}
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