South Africa: Money Laundering and Corruption

Debate between Lord Ahmad of Wimbledon and Lord Hain

Thursday 17th October 2019 Lords Chamber

[Lord Hain]

To ask Her Majesty’s Government what plans they have to impose similar sanctions to those announced by the United States Department of the Treasury on 10 October against Rajesh Gupta, Atul Gupta and Ajay Gupta for money laundering and corruption in South Africa.

[The Minister of State, Foreign and Commonwealth Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, I thank the noble Lord for raising this important issue and also for his recent letter to my right honourable friend the Chancellor of the Exchequer. We note with interest the recent announcement by the US Administration and will consider the noble Lord’s request very carefully. We are aware fully of the allegations relating to these individuals and are discussing with the South African National Prosecuting Authority how we can best support its work to pursue proceedings against those implicated in corruption.

[Lord Hain (Lab)]

I am grateful to the noble Lord for his Answer. Will the Chancellor follow the US Treasury in imposing sanctions on Rajesh Gupta, Atul Gupta and Ajay Gupta, to block all of their property and interests in property within the UK’s jurisdiction and, like US persons, prohibit UK citizens and UK-based financial institutions and other UK-based entities from engaging in any transactions anywhere across the world with them? Will the Chancellor also immediately contact the Dubai, Hong Kong and Indian authorities and ask them to do the same?

Through their corrupt criminality and shameful looting, blessed by former President Zuma, the Gupta brothers have ripped off South African taxpayers by well over £500 million, a lot of it laundered through London, Dubai, India and Hong Kong, and assisted by London-based corporates such as McKinsey, KPMG, Bain & Co and Hogan Lovells. Any failure by global Governments to act against all this would echo their failure to impose sanctions on apartheid South Africa.

[Lord Ahmad of Wimbledon]

My Lords, I am sure the noble Lord will appreciate that I cannot say any more on the specific matter he has raised at this point. We are in touch with the South African authorities. The noble Lord is also very much aware of the strong stance that the UK Government and indeed the United Kingdom have taken over several years in further strengthening our work on tackling corruption and illicit finance. He raised a specific question on the UAE and India and whether my right honourable friend would write. I have been informed that the South African authorities have already made mutual legal assistance requests to the Governments of those countries. Additionally, similar requests have been made to the Governments of Canada, Switzerland, Mauritius, Hong Kong and China. As I said, I am aware of the letter the noble Lord wrote to my right honourable friend and I know the Chancellor will respond to him shortly.

Jamal Khashoggi

Debate between Lord Ahmad of Wimbledon and Lord Hain

Tuesday 23rd October 2018 Lords Chamber

[Lord Ahmad of Wimbledon]

The noble Lord speaks from wide experience in this respect and I agree with him on principle. I fully support his position but what Germany exports and what is does is really a matter for the German Chancellor and Government. I have looked at the structure and support of arms sales. This was put in place by the very respected Robin Cook when he was Foreign Secretary. There are quite strict procedures in place to ensure that these weapons comply with international humanitarian law.

Notwithstanding that, the noble Lord will also be aware that our export licensing system also builds in flexibility to allow us to respond quickly to changing circumstances. Since 2015 we have suspended more than 331 licences. This is not a case of once agreed, never suspended. I agree with the noble Lord that we must be very careful to ensure that our response is considered, clear and unequivocal. We should act only, I stress again, once the full facts have been presented. As I said, we await the full facts from the Turkish investigation.

[Lord Hain (Lab)]

My Lords, following up the noble Lord’s Statement, we brought in legislation on arms sales, which this Government profess to comply with, saying that arms could not be sold to be used for external aggression or internal repression. External aggression is what the Saudis are doing in Yemen on a massive scale. We need to reset our relationship with Saudi Arabia, particularly in light of this barbaric murder. By the way, President Erdoğan championing journalistic freedom is something else.

Will the Minister consider the case for resetting the relationship with Saudi Arabia without turning our backs on an important strategic relationship in intelligence and defence terms? I understand that, having been a Middle East Minister. We should adopt a much more even-handed attitude in that region, especially between Riyadh and Tehran. We treat Iran as a pariah state but we treat the Saudis as brothers in arms. Maybe the Crown Prince took that and the signals from President Trump as giving him a blank cheque, as it were, to operate with impunity in a lawless way, as has clearly happened in Istanbul.

[Lord Ahmad of Wimbledon]

My Lords, the noble Lord mentioned how Saudi Arabia has been acting and this crime in particular. The reaction to it and the changing position from the Saudi Government reflect the strength of opinion and representations made not just by the United Kingdom but others. It has resulted in the admittance that a crime—indeed, a murder—took place in the consulate in Istanbul. As I said, we await the full facts of what will be determined from the investigation by Turkey, which we fully support.

Picking up a thread from the earlier questions from the noble Lord, Lord West, about training and support, it is right that we provide support in terms of training to militaries across the world, as we do to the Saudi military. There is an advantage in doing this because we share elsewhere the values and the strong sense of training deployed by our troops, which stress the importance of international humanitarian law.

As for resetting relationships, the noble Lord acknowledged the importance of the strategic partnership, but lessons will be learned from this incident, which resulted in the murder of Jamal Khashoggi. As I said, once all the facts have been presented, the United Kingdom Government will consider them very carefully and act accordingly.

Yemen: Humanitarian and Political Situation

Debate between Lord Ahmad of Wimbledon and Lord Hain

Monday 20th November 2017 Lords Chamber

[Lord Ahmad of Wimbledon]

My noble friend makes a number of important points. I can assure him on one of the central points that he makes, when he gets to the heart or crux of the challenge and the issue on the ground in Yemen—the protracted dispute and regional rivalries being played out in Yemen. In recent history, the current crisis was exacerbated when the then legitimate Government, who had support, was removed by the rebel Houthis, supported again by other regional players in the area. It is important to recognise, as he says, that, as we have made clear to all parties, including the Saudis, protracted conflict through use of military actions and the restrictions that are being applied will not result in the long-term solution required on the ground, which can be achieved only by all parties coming together. That is what we are emphasising not just through the political solution that we seek through the United Nations but through the work that we are doing with key regional players, including the Emiratis—yes, the Saudis as well—but also the Omanis, in ensuring that through the Quint and the Quad we bring all relevant parties forward towards that political solution.

[Lord Hain (Lab)]

My Lords, will the Government accept that their one-sided approach to this whole crisis is prolonging it? The Minister made criticisms of Iran, and rightly so, but he made no criticisms at all of the Saudis, although their strategy is acting as a recruiting sergeant for militant rebels and encouraging Iranian influence in the region. Surely, there should be an even-handed attitude between Iran and Saudi Arabia to get both to accept their responsibilities for this conflict, or we will see a disaster on the kind of scale that we have seen in Syria—and I say that as a former UK Middle East Minister.

[Lord Ahmad of Wimbledon]

Of course, the noble Lord speaks with experience in this regard. I assure him that, as I have said already from this Dispatch Box, not just today but previously as well, regional conflicts are being played out not just in Yemen but in other parts of the Middle East, which tragically go back to a core conflict that exists in the schism, tragically, in the Islamic faith. However, that should not detract from the fact that the United Kingdom, as I assure him and all noble Lords, makes the strongest representations to the Saudis. I assure him that we have tried to ensure that the Saudis and all regional partners bring to an end this conflict, which has gone on for far too long.

Saudi Arabia and Iran

Debate between Lord Ahmad of Wimbledon and Lord Hain

Wednesday 15th November 2017 Lords Chamber

[Lord Ahmad of Wimbledon]

I agree with the sentiments of the noble Lord, who knows the region well. I think I speak for everyone in your Lordships’ House and beyond when I say that we wish to see a resolution not just of the conflict in Yemen, where innocent civilians in particular are suffering, but of any conflict between Iran and Saudi Arabia, which is worrying not just to the region but to the whole world. This conflict is tribally based and has not just arisen since the regime took over in Iran in 1979; it is a deep-rooted, embedded conflict which goes back to the division in Islam between the Sunni and Shia communities. I assure the House that Her Majesty’s Government are using all means available to us to make bilateral representations. We remain very supportive of the nuclear deal with Iran. We are using all good offices to ensure, first and foremost, that the suffering of those in Yemen can be brought to a halt. Ensuring free access for United Nations and other agencies will be a first step in providing humanitarian relief to civilians in Yemen.

[Lord Hain (Lab)]

My Lords—

--- Later in debate ---

[Lord Hain]

My Lords, does the Minister accept that we have to adopt a much more even-handed stance between Tehran and Riyadh in order to resolve the toxic instability afflicting the entire Gulf/Middle East region? We are seen to be allies of Saudi Arabia—I do not dispute the need for that—and to take the side of Saudi Arabia and the Sunni Muslim faith against Iran and the Shia Muslim faith. We need to be equal-handed between the two in order to end the proxy wars in Yemen, Lebanon, increasingly, Syria and Iraq.

[Lord Ahmad of Wimbledon]

I assure the noble Lord that we support the work that Saudi Arabia has done in the region. The stance we have taken on recent events regarding the Iranian nuclear deal shows the importance the UK attaches to bringing stability to the wider region. As for the two branches of Islam, let us not forget that there are 73 branches of Islam and Her Majesty’s Government are neutral in our interpretation of all of them.

Zimbabwe

Debate between Lord Ahmad of Wimbledon and Lord Hain

Wednesday 15th November 2017 Lords Chamber

[Lord Ahmad of Wimbledon]

I thank my noble friend, who speaks very aptly. We have always been concerned about the situation in Zimbabwe and its impact on the surrounding regions. I alluded to this in the Statement but, irrespective of which party has led the Government and notwithstanding the situation on the ground in Zimbabwe, we have stood firm and side by side with the people of Zimbabwe. We have seen from recent economic conditions on the ground and in the situation under Robert Mugabe’s leadership that the people have suffered dreadfully. However, at the same time, the British Government, irrespective of political colour, have stood resolute in supporting Zimbabwe’s citizens. We continue to provide £80 million per annum in bilateral support, in crucial areas such as education and health, and it is important that that support has continued irrespective of who has led Zimbabwe.

[Lord Hain (Lab)]

My Lords, in welcoming the Minister’s Statement, can I gently correct him? South Africa is the jewel of Africa—not Zimbabwe. More seriously, could he investigate why the fearlessly investigative online newspaper the Daily Maverick had its chief reporter in Zimbabwe, Richard Poplak, detained and then put on a plane out of Harare? Is there now an even greater attack on press freedom in Zimbabwe? Could he investigate that, because it is a worrying development? Given the instability, we need journalists in there to tell us the truth.

[Lord Ahmad of Wimbledon]

On the second point, I shall write to the noble Lord as appropriate. On his first point, there are many jewels in Africa, and that is probably where I shall let the matter rest.