Appointment of Lord Lebedev

Clive Efford Excerpts

Tuesday 29th March 2022 Commons Chamber

[Clive Efford (Eltham) (Lab)]

The suggestion that Labour Members are somehow anti-Russian is not borne out by the facts and is just an attempt by Government Members to avoid the criticism that the motion makes of the way they handled the appointment of Lord Lebedev. In order to understand why his appointment to the House of Lords is concerning, we have to look at the history of where the family money came from.

Evgeny Lebedev’s father is a former KGB operative. He joined the KGB in the early 1980s, he was active in the KGB through perestroika and he was active in London. Although as a diplomat he had diplomatic cover, he operated as a spy out of Kensington Palace Gardens from 1988 to 1992. During perestroika, the KGB reformed itself. Rather than being an anti-capitalist organisation, it used the knowledge it had gained of capitalism, and members of the KGB became capitalists themselves. In an extraordinary way, many became extraordinarily rich in a very short space of time.

In the early ’90s, Alexander Lebedev set up his first business. By 1995, he was able to buy a bank, the National Reserve Bank. It was a bank in financial difficulties; none the less, he had enough money to buy it. Its assets grew incredibly fast, and by 2006 his fortune was estimated to be $3.5 billion. Not bad work for a member of the KGB. He was listed by “Forbes” as Russia’s 39th richest man. He also purchased newspapers along the way—something that would be repeated by the family in later years.

In 1997, the Russian prosecutor general, Yury Skuratov, opened multiple investigations into Lebedev and the NRB, accusing the bank of tax avoidance and fraud. Skuratov also investigated Yeltsin’s Government in the late 1990s, and he believed that Lebedev was spying on him to counteract the investigations into the NRB and the Kremlin. Leaks about Skuratov’s personal life went on the internet and were traced back to an organisation called Konus, a security company linked to Lebedev’s bank, the NRB. In 1999, a sex kompromat tape appeared showing a man who looked like Skuratov with two young sex workers. Kompromat is a set-up—basically, a honey trap—where people are filmed in compromising situations. Skuratov denied that it was him.

At the time that the tape was leaked, Putin was head of the FSB, the Russian spy organisation that replaced the KGB. Putin declared on national television that the man on the tape was Skuratov. Skuratov was sacked and the corruption investigations into Alexander Lebedev’s bank and the Government collapsed. Putin then entered the Kremlin, and Lebedev’s wealth increased exponentially.

Kompromats are used by secret services, especially the KGB. Our secret services have said that if someone put themselves in a compromising position, as the Prime Minister did when he went to the Palazzo Terranova, they too would have been on it, and would have tried to find evidence that the subject they were investigating had compromised themselves. That is why the security services are so alarmed by the behaviour of the Prime Minister—by the fact that he would leave behind his security detail and go to bunga bunga parties at Palazzo Terranova.

We have to understand that we are talking about a pattern of behaviour by Russian oligarchs. They have used London to launder their money—to turn dirty money into clean money—and then meticulously set about buying influence in various parts of British society. They are starting to buy political influence, social influence, football clubs, and newspapers—you name it, they are seeking to influence it. They are using strategic lawsuits against public participation against any journalist, newspaper or book writer who investigates what they are up to. Political donations are part of this; £2.2 million has been donated since the Prime Minister became leader of the Conservative party.

Then there is VTB Bank, the second largest bank in Russia, which has been sanctioned by the Government. An individual who works for it, in global fixed income trading, has given £44,000 to the Tory party in the last two years, including £3,000 to the Conservative party in Greenwich, my borough. We are fighting local elections; why should they be paid for by Russian money that comes from a bank that is associated with the Kremlin? Why should somebody who is paid by a Russian bank finance local government elections in this country? How is that justifiable?

[Alex Cunningham (Stockton North) (Lab)]

Given what my hon. Friend says, he will be interested to hear that Lord Wharton, who was appointed to the Lords on the same day as Mr Lebedev, is a former adviser to Alexander Temerko, who has distributed money to Tory MPs and the Tees Valley Mayor. Yesterday, it was revealed that the Mayor’s close relative has been appointed to Lord Wharton’s Office for Students. Does my hon. Friend agree that the Prime Minister’s dodgy actions are perpetuated throughout the Tory party?

[Clive Efford]

I absolutely do. We need to shine the light of accountability on what has been going on. That is what the motion calls for. It calls for the evidence to be published—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. It is important that references are not made to Members of the House of Lords who are outside the scope of this motion; I say that just so that Mr Cunningham is clear.

[Clive Efford]

I am grateful for that clarification, Madam Deputy Speaker. I was concerned; I was worried. I will finish off, before you criticise me for going on too long.

The motion calls for the evidence to be published—simple as that. That is why there has been a collapse in the number of Tory Back Benchers in the Chamber, and why the Government are not voting against the motion—because their Back Benchers will not vote against it; it is a perfectly reasonable motion, calling for accountability from a Prime Minister who has behaved disgracefully and could have compromised the security of this country. That is what the motion is about. It is a disgrace that the Conservatives are not voting for it and not holding the Prime Minister to account.

--- Later in debate ---

[Michael Ellis]

With the leave of the House and yourself, Mr Deputy Speaker, I would like to close the debate.

Let me thank the House for the robust debate on this motion. As has become only too clear, it has, I am sorry to say, become something of an excuse for the Opposition to bring their usual, unfounded criticisms to the table. The insinuation that this Government are soft on Russia—which I think is what this debate is supposed to be about in the eyes of Labour—is obviously nonsense. In fact, our support for Ukraine is second to none. President Zelensky himself has spoken of the United Kingdom in glowing terms; the Russian Kremlin has spoken of this Prime Minister as its principal opponent. We are doing everything and more, and we will continue to do that, to support the people of that sovereign and independent state, so I rebut any suggestion that this Government are in anything other than an exemplary position in supporting the people of Ukraine and resisting the Putin regime’s actions.

But this is not about the people of Russia. This is not about British citizens who are of Russian extraction. To smear a British citizen of Russian extraction in order to score cheap political points against the Prime Minister, who has been Ukraine’s principal ally and is doing a superlative job, seems counterproductive when—if I can say this with the greatest possible respect—Members on the Labour Front Bench and Sadiq Khan, the Labour Mayor of London, have taken hospitality from Lord Lebedev, and when the Leader of the Opposition has sent a congratulatory text message, apparently, to Lord Lebedev on his appointment. As I have said, I do not personally criticise that, but it does seem counterproductive in the light of this debate.

However, back to the topic in hand. We should not visit the sins of any father on his sons or daughters. We did away with Acts of Attainder a very long time ago, but there has been frequent reference to people’s parentage, which I do not think is appropriate. If we look at the topic at hand, we see that, as has been reiterated throughout the debate, the motion is focused on a misunderstanding of the constitutional position. The House of Lords Appointments Commission, HOLAC, is an independent body. It seeks advice from the appropriate vetting agencies. The advice it gives to the Prime Minister—which it has given to Tony Blair and Gordon Brown, and so on, since 2000—is confidential. However, today’s motion would breach the critical confidentiality that underpins the process, damaging the ability of that valued committee, and its independent members, to undertake its role. The motion is careless of the question of the data of private individuals and would allow private information about individuals to be disclosed whenever a political party—any political party—wished for that to happen for purely partisan purposes.

[Clive Efford]

If the motion is nonsense and we are wrong, will the Minister confirm that he has enough votes on the Benches behind him to vote it down?

[Michael Ellis]

I think the hon. Member knows that the common practice is not to vote on Opposition motions—[Laughter]—and for very good reason.

This motion, as the hon. Member knows and as the House knows, is very careless of the position I have outlined. We need to ensure the ability of that committee to conduct robust vetting and to provide advice that is not compromised. The process should continue to be conducted confidentially.

Reference was made by the right hon. Member for Exeter (Mr Bradshaw) earlier in the debate to the ISC’s report, which was published in July 2020. That was welcomed by the Government. The Government’s response was published on the same day as the ISC’s report, and I would say this on Russian intelligence. We expelled 23 undeclared Russian intelligence officers after Salisbury. We have attributed cyber-attacks where appropriate to Russian intelligence, we have exposed those involved in hacking, and we have exposed the military build-up on the Ukrainian border. We do what we need to do to protect the national security and national interests of this country.