'I was clearly being smeared': New UK finance minister defends himself over tax affairs

Defending himself, the United Kingdom's newly-appointed Finance Minister Nadhim Zahawi said he is "clearly being smeared" after reports accused him of his tax affairs. A media report recently claimed the investigation authorities are probing his tax affairs.

During an interview with UK-based media outlet Sky News, Zahawi said, "I was clearly being smeared. I was being told that the Serious Fraud Office that the National Crime Agency, that HMRC (Her Majesty's Revenue and Customs) are looking into me."

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Reacting to that, Zahawi said, "I'm not aware of this." He further insisted, "I've always declared my taxes. I will answer questions HMRC has of me."

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What was the claim?

A report by the Observer suggested that before he was promoted, officials raised a flag over Zahawi's financial affairs. It is claimed that civil servants in the cabinet office's propriety and ethics team had apparently alerted Boris Johnson to an HM Revenue and Customs "flag". But Zahawi was still appointed by Johnson.

As quoted by the media outlet, one source said: "It's extraordinary that flags were raised ahead of Nadhim's appointment by the Downing Street proprietary team. These sorts of concerns would stop someone receiving an MBE or OBE. The idea he could be chancellor or even prime minister is unbelievable."

As per the report, the National Crime Agency (NCA) has apparently investigated Zahawi, the Independent reported last week. There is no report or suggestion of wrongdoing.

The 55-year-old Zahawi was appointed as finance minister after Rishi Sunak resigned from the post. Zahawi was previously the education secretary. He was replaced as education secretary by Michelle Donelan, previously a junior education minister.

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