Magnitsky Sanctions: Human Rights Abuses

Martin Docherty-Hughes Excerpts

Wednesday 8th December 2021 Westminster Hall

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

It is great to see you in the Chair, Mrs Miller. Let me congratulate the hon. Member for Rhondda (Chris Bryant) on gaining the debate and the members of the all-party group on the work that they have undertaken to highlight the deep and profoundly worrying human rights abuses across the world.

I am sure we all agree that the abuse of individuals, political and religious groups, and, indeed, minorities across the world by a range of global state actors is well documented, but less well documented are the lesser-known non-state actors now participating in the field of human rights abuse. Nevertheless, the systematic utilisation of global finance to enable those crimes against humanity in many ways remains cloaked in secrecy, underpinned by the rightly named—at least as I see it—dark money.

Dark money is an issue that I and many of my SNP colleagues have taken a keen interest in since 2015. Like the hon. Member for Rhondda in relation to today’s debate, we do so for good reason, believing in an open, transparent political process founded on the rule of law, and believing in parliamentary democracy—a model that seeks to hold Government to account for their actions.

It used to be said that all roads lead to Rome—a very lovely place indeed—yet from my perspective in the political world today, especially in the age of dark money, the road always seems to lead to the Kremlin. The debate takes its name from the late Sergei Magnitsky, a Russian lawyer to whom the hon. Gentleman alluded. Magnitsky uncovered large-scale tax fraud while working for Hermitage Capital based here in London. Sergei, as we know, died in a Russian prison owing to mistreatment.

It is also well known that the previous Government believed that the then existing fraud legislation was actually enough. In February 2018, the then Foreign Secretary, now the Prime Minister, argued that the Sanctions and Anti-Money Laundering Bill provided enough powers. At least some of us would say that, luckily, the then Prime Minister recognised the opportunity to improve existing legislation, and the tone changed with the Government saying they would consider changes to Bill, which has been mentioned by Members previously. We are glad that those came forward.

During the debate, various Members have highlighted some of the most egregious abuses of the dignity of the rights of people and peoples across the globe, from the profoundly familiar way in which the Uyghur people are treated and herded by the Communist party of China to the killing and torture of protestors during the military coup in Sudan. Given that Members have gone into some detail on those points, I will not give another detailed exposition of inhumanity, so let me follow the money that might finance those abuses and undermine democratic governance. Specifically, I want to refer to Scottish shell companies that have siphoned billions of dollars, including from the former Soviet Union, and, in particular, the link, cited by David Leask of openDemocracy, to an Uzbek business empire.

Mr Leask highlights the fact that in a rather unassuming southside-of-Glasgow trademark tenement lies the official headquarters of a company known as Yardrock Development. The investigation by openDemocracy revealed that the company in question is linked to the Uzbek President, Shavkat Mirziyoyev, and it will come as no surprise that this company is a Scottish limited partnership—a company structure known globally as the UK’s “homegrown secrecy vehicle”. Indeed, in recent years, some SLPs have been blacklisted by the United Nations Development Programme, and even by the World Bank, given the ongoing concerns relating to their ability to undermine transparency and good governance. SLPs are safe ports in a storm in murky waters for dark money. They are harbours offering access to doubtful financial probity and dodgy dealings.

Let us go back to Mr Leask’s investigation, which states that:

“In a report published this month, UzInvestigations, a group led by Professor Kristian Lasslett of Ulster University and supported by the Uzbek Forum for Human Rights, found that eight SLPs, including Yardrock Development, owned a total of more than $128m worth of equity in Orient Group companies… UzInvestigations said the Orient Group had risen in prominence with the support of the Uzbek state”

and its leadership—a company with direct links to the President via one of the owning group’s founders and shareholders, Oybek Umarov, who is

“a brother of Otabek Umarov, deputy head of the Presidential Security Service and Mirziyoyev’s son-in-law”.

Additionally, UzInvestigations has highlighted that another senior executive is even the

“son of a serving minister.”

Mr Leask’s investigation also states:

“Umida Niyazova, director of the Uzbek Forum for Human Rights, echoed Lasslett’s concerns. ‘As more wealth accumulates in the hands of those close to senior state officials, the link between extreme economic and political power becomes stronger,’ she said, adding: ‘This is a significant threat to any prospect of democratisation in Uzbekistan.’”

This is a slippery slope of authoritarianism, ably assisted by nepotism and Scottish limited partnerships. If allowed to go unchallenged, corruption in a political process undermines the rule of law, undermines the courts and undermines public confidence in liberal democracy. Corruption opens the door to the abuse of the person, a collective of people, a culture and a political movement. It emboldens those who use dark money to facilitate it. The role of SLPs in Uzbekistan cannot be glibly ignored.

We need only look at what is happening in Hong Kong, which has been mentioned briefly. Hong Kong might not have been in the news as much as it was previously, but that is largely due to the Communist party’s national security law. Let us be under no illusion: what we are witnessing is the death of democracy in Hong Kong.

[Mrs Maria Miller (in the Chair)]

Order. May I encourage the hon. Gentleman to wrap up his speech?

[Martin Docherty-Hughes]

I will indeed, Mrs Miller; I will come to a conclusion in just a moment.

What we are seeing in Hong Kong are freedoms being destroyed and the rule of law, democracy and the right to freedom of expression being totally undermined by the Communist party. Will the Minister give us some clarity on the position on Hong Kong and those in the Communist party of Hong Kong? Can the Minister state that the Government recognise the impact of Scottish limited partnerships on the future of democracy—not only on these islands, but in Uzbekistan—and their role in facilitating the movement of finance that is used to undermine human rights across the globe?