Key Takeaways
- Lord Evans of Watford, a Labour peer, has been suspended from the House of Lords for five months for breaking lobbying rules.
- He is facing legal action over payments he received as a director of a UK investment firm that managed assets in Kazakhstan.
- The payments are alleged to be part of a corrupt deal in which the assets were sold for a fraction of their value.
- Evans and the other directors deny the allegations, saying they are part of "meritless" lawsuits.
- The legal dispute is ongoing, with court cases in both Britain and the US.
Introduction to the Scandal
The scandal surrounding Lord Evans of Watford, a Labour peer, has taken a new turn with allegations that he received at least $1m (£760,000) from an allegedly corrupt deal. This comes after he was suspended from the House of Lords for five months for breaking lobbying rules. The peer was found to have broken the rules four times after undercover reporting by the Guardian, and will be suspended from the House of Lords. The latest allegations relate to his role as a director of a UK investment firm that managed assets in Kazakhstan.
The Allegations
The allegations against Evans and the other directors of the UK investment firm are serious. They are accused of receiving millions of dollars in illicit payments as part of a deal in which they sold the assets of the firm for a fraction of their value. The assets, which were valued at $1.6bn, were sold to a Kazakh oligarch for $75m, a "minuscule fraction" of their value. The former executive of the firm, Yerbol Orynbayev, has filed a US lawsuit against Evans and the other directors, accusing them of "systematically looting" the US charity that was set up to support educational projects in Kazakhstan.
The Denial
Evans and the other directors have denied the allegations, saying they are part of "meritless" lawsuits. They claim that Orynbayev is a disgruntled shareholder who is upset that he was unable to sell his shares in the firm at a profit. They also claim that Orynbayev had originally supported the deal that he is now denouncing as corrupt. A spokesperson for the group said that Orynbayev’s claims are "misleading and false" and that they are confident that they will prevail in the lawsuits.
The Investigation
The investigation into the allegations is ongoing, with court cases in both Britain and the US. A UK judge has presided over the UK lawsuit and has questioned the credibility of Orynbayev’s claims. The judge has suggested that the value of the assets may have been lower than Orynbayev claims, and that the circumstances of the sale of the assets have "not been fully explored". However, the judge has also said that there remains "a real question about… the director remuneration issues".
The Suspension
The suspension of Evans from the House of Lords is a significant consequence of the scandal. He will be suspended for five months, and has also lost the Labour whip. The suspension is a result of the findings of the parliamentary watchdog, which concluded that Evans had used his position in the second chamber to get fellow peers to speak at commercial events in which he had a financial stake. Evans has been a director of the UK firm Jusan Technologies Ltd since 2022, and has been accused of using his position to personally enrich himself.
The Background
The background to the scandal is complex. Evans has been a Labour peer since 1998, and has rarely contributed to debates in the chamber. He has been a director of several companies, including Jusan Technologies Ltd, which managed assets in Kazakhstan. The assets were used to fund a US charity that supported educational projects in Kazakhstan. However, the charity has been accused of being used as a vehicle for corrupt dealings, and Evans and the other directors have been accused of "systematically looting" the charity.
The Conclusion
In conclusion, the scandal surrounding Lord Evans of Watford is a serious one. The allegations of corrupt dealings and illicit payments are severe, and the suspension from the House of Lords is a significant consequence. The investigation is ongoing, and it remains to be seen what the outcome will be. However, one thing is clear: the scandal has raised serious questions about the conduct of politicians and the use of their position for personal gain. The case highlights the need for greater transparency and accountability in politics, and the importance of ensuring that those in positions of power are held to the highest standards of integrity.