The Guardian's report alleged that Al-Fayed had approached the paper and accused Ian Greer of paying then-MPs Neil Hamilton and Tim Smith to table parliamentary questions on his behalf at £2,000 a time.[2] Smith resigned immediately after admitting to accepting payments from Al-Fayed himself, but not from Greer as The Guardian had alleged.[3]
Hamilton and Greer immediately issued libel writs in the High Court against The Guardian to clear their names.[4]
The furor prompted the then-prime minister John Major to instigate the Nolan Committee, to review the issue of standards in public life.[5]
Six weeks later in December 1994, in a private letter to the chairman of the parliamentary watchdog the Members' Interests Committee, Mohamed Al-Fayed alleged that he had paid Hamilton, in addition to the original allegations that Ian Greer was the paymaster. Hamilton denied this new allegation.[citation needed]
The Defamation Act 1996 was designed to alter the Bill of Rights 1689, and allows an MP to waive parliamentary privilege. This would have permitted Hamilton to give evidence in court concerning statements he made in the House of Commons.[6][7]
Two years later, at the end of September 1996, three days before Hamilton's and Greer's libel actions were due to start, three of Mohamed Al-Fayed's employees claimed that they had processed cash payments to the two men. Hamilton and Greer denied these new allegations.[8]
Hamilton and Greer withdrew their libel action on 30 September 1996.[6]
Hamilton's and Greer's withdrawal of their libel actions provoked an avalanche of condemnation of the two men in the British press, led by The Guardian. Parliament initiated an official inquiry into the affair, to be led by Sir Gordon Downey.[6]
In December 1996, Ian Greer's lobbying company collapsed.[1]
Downey began his inquiry in early 1997, but before he published his report Prime Minister John Major prorogued Parliament for a general election, to be held on 1 May 1997.[9]
Smith resigned from Parliament on 25 March, and stood down in the general election.[10][11]
In the election, former BBC reporter Martin Bell stood in Hamilton's Cheshire constituency of Tatton as an independent candidate on an "anti-corruption" platform. Bell easily defeated Hamilton with the assistance of the Labour Party and the Liberal Democrats, who both withdrew their candidates and supplied party workers to help Bell's campaign.[12]
Sir Gordon Downey published his 900-page report in early July 1997, clearing Ian Greer, Neil Hamilton, and Tim Smith of The Guardian's original allegations that Ian Greer had paid the two MPs to table questions. However, Downey decreed that the three Fayed employees' testimony that they had processed cash payments to Hamilton amounted to "compelling evidence", though he did not accept their claims to have processed cash payments to the lobbyist Greer.[13]
At the same time, the Standards and Privileges Committee published its conclusions in relation to complaints made by The Guardian and Mohamed Al Fayed, which concluded:[14]
He had no obligation to disclose to Ministers the interests of his colleagues.
Although the extent to which he declared his own interests on House of Fraser matters fell well short of the terms of the 1974 Resolution, there is no evidence that Ministers and officials were misled by this.
The spirit of the rules would have been better observed had Sir Peter made a separate Register entry in respect of Mr Al Fayed's hospitality, but this omission was not improper by the standards accepted at the time.
The allegation that Sir Peter tabled questions for cash is without substance and has been withdrawn.
There is insufficient evidence to substantiate the allegation that Sir Andrew received, or demanded, cash payments from Mr Al Fayed in return for lobbying services.
The election donation of £5,319 from Mr Greer was intended as a reward for lobbying and Sir Andrew probably knew it came originally from Mr Al Fayed.
Sir Andrew failed to register, as he should have done, this election campaign donation.
Sir Andrew failed to declare his interests in dealings with Ministers and officials over House of Fraser, and, in one case, gave a positively misleading explanation for his representations.
Sir Michael received payments from Mr Greer (though not in cash) which were neither introduction commissions nor fees associated with the Unitary Tax Campaign.
It is not possible to conclude that these payments originated from Mr Al Fayed, although Sir Michael actively participated in the Greer lobbying operation.
Sir Michael deliberately misled the Select Committee on Members' Interests in 1990 by seriously understating the number of commission payments he had received; and by omitting to inform them of other fees received from Mr Greer.
Sir Michael persistently failed to declare his interests in dealings with ministers and officials over the House of Fraser.
Sir Michael's action in taking a commission payment for introducing a constituent to Mr Greer was unacceptable.
There is insufficient evidence to show that Sir Michael solicited business for Mr Greer in expectation of commission payments.
Mr Smith accepted cash payments directly from Mr Al Fayed of between £18,000 and £25,000 in return for lobbying services. There is no evidence to indicate that he received cash from Mr Al Fayed indirectly through Mr Greer.
The way in which these payments were received and concealed fell well below the standards expected of members of parliament.
The allegation that Mr Smith was paid to initiate an Adjournment debate in 1986 is not substantiated.
Mr Smith's financial interest in relation to House of Fraser was only registered in January 1989 when it had been publicly exposed by Mr Rowland; and then only hesitantly for a period of two and a half weeks. This has to be seen as a disingenuous attempt at concealment. On any view, this was a totally unacceptable form of registration by Mr Smith.
Mr Smith persistently and deliberately failed to declare his interests in dealings with ministers and officials over House of Fraser issues.
To his credit, Mr Smith eventually admitted receiving payments, although not until he was asked in 1994; and he expressed his regrets for the non-registration and non-declaration of interests.
Smith accepted cash payments directly from Mr Al Fayed of between £18,000 and £25,000 in return for lobbying services… persistently and deliberately failed to declare his interests in dealings with Ministers and officials over House of Fraser issues … Mr Smith's conduct fell seriously below the standards which the House is entitled to expect … had he still been a Member we would recommend a substantial period of suspension from the service of the House.
In 1998 Neil Hamilton issued a writ for libel against Mohamed al-Fayed, over allegations that Al-Fayed had made on a Channel 4 documentary programme broadcast in January 1997. In late 1999 the trial began at the High Court. Hamilton lost and was ordered to pay costs.
In late 2000, Hamilton's appeal was heard at the Court of Appeal. The three judges dismissed Hamilton's appeal on the grounds that Fayed's acquisition of the stolen papers would not have materially affected the outcome of the trial.
In 2001 Neil Hamilton declared bankruptcy.
Riddick and Treddinick
Though the term "cash for questions affair" is used to refer to the events that followed the publication of The Guardian's story, it was not the first time that a British newspaper had accused MPs of taking bribes to table questions. Three months earlier, in July 1994, a 'sting' operation by The Sunday Times reported that two Conservative MPs Graham Riddick and David Treddinick had accepted cheques for £1,000 for agreeing to table a parliamentary question.[15]
The two were suspended from parliament for 10 and 20 days respectively, Mr Riddick receiving a shorter 'sentence' due to his apparent decision to apologise quickly and return his cheque bribe.[16]
Riddick lodged a formal complaint with the Press Complaints Commission (PCC). Basing its decisions on the information compiled by the Commons' Privileges Committee the PCC found in Riddick's favour. The commission judged that The Sunday Times failed to make clear to its readers that its approach to Riddick had been on the basis of a legitimate consultancy, not on the basis of a one-off payment in return for asking a question and that there was no justification for the newspaper's resort to subterfuge. This overturned a ruling two years earlier by the PCC in favour of The Sunday Times when Riddick had been unaware that the PCC was investigating the matter. The PCC apologised to Riddick for 'this serious breach of our procedures.'[17][18]
Mohamed Abdel Moneim Al-Fayed was an Egyptian billionaire businessman, whose residence and primary business interests were in the United Kingdom from the mid-1960s. His business interests included ownership of the Hôtel Ritz Paris, Harrods department store and Fulham Football Club. At the time of his death in 2023, Forbes estimated his wealth at US$2 billion.
Mostyn Neil Hamilton is a British politician and former barrister who was leader of the UK Independence Party (UKIP) from 2020 to 2024. He was the Conservative member of parliament (MP) for Tatton from 1983 to 1997 and a UKIP Member of the Senedd (MS) for Mid and West Wales from 2016 to 2021.
Harrods is a British luxury department store located on Brompton Road in Knightsbridge, London, England. It is owned by Harrods Ltd, a company currently owned by the state of Qatar via its sovereign wealth fund, the Qatar Investment Authority. The Harrods brand also applies to other enterprises undertaken by the Harrods group of companies, including Harrods Estates, Harrods Aviation and Air Harrods. Recognised as one of the world's leading department stores, it is visited by 15 million people per year.
Martin Bell, is a British UNICEF Ambassador, a former broadcast war reporter and former independent politician who became the Member of Parliament (MP) for Tatton from 1997 to 2001. He is sometimes known as "the man in the white suit".
Mary Christine Hamilton is an English media personality and author. She is married to Neil Hamilton, the former Conservative Member of Parliament (MP) for Tatton.
Michael Keith Beale Colvin was a British Conservative Party politician. He was first elected as the Member of Parliament (MP) for Bristol North West in 1979. From 1983 onwards, he was the MP for Romsey and Waterside constituency in Hampshire, which later became the constituency of Romsey.
Roland Walter "Tiny" Rowland was a British businessman, corporate raider and the chief executive of the Lonrho conglomerate from 1962 to 1993. He gained fame from a number of high-profile takeover bids, in particular his attempt to take control of Harrods. He was known for his complex business interests in Africa and his closeness to a number of African leaders.
Graham Edward Galloway Riddick was the Conservative Party Member of Parliament (MP) for Colne Valley in West Yorkshire, England from 1987 to 1997.
Michael Russell Brown is a British political journalist, noted as a former Conservative Party Member of Parliament (MP) from 1979 to 1997.
Sir Peter Hugh Morrison was a British Conservative politician, MP for Chester from 1974 to 1992, and Parliamentary Private Secretary (PPS) to Prime Minister Margaret Thatcher.
Timothy John Smith is a British former Conservative politician.
Sir Andrew Bowden is a British Conservative Party politician. From 2004 to 2010, he was an international consultant at Global Equities Corporation.
Sir William Michael John Grylls was a British Conservative politician who was an MP from 1970 to 1997. He was implicated in the cash-for-questions affair, a political scandal of the 1990s. He was the father of adventurer and the Scout Association's Chief Scout Bear Grylls.
Jamshid Ali Dizaei is a former Commander in London's Metropolitan Police Service, Iranian-born with dual nationality, and formerly one of Britain's more senior Muslim police officers. Dizaei came to prominence as a result of his outspoken views on racial discrimination in the London Metropolitan Police and various allegations of malpractice on his part. He had received advancement after his criticism of the force following his claims of racism. He was a frequent media commentator on a variety of issues, mainly concerned with ethnicity and religion. In April 2008, he was promoted to Commander, responsible for West London.
Carter-Ruck is a British law firm founded by Peter Carter-Ruck. The firm specialises in libel, privacy, international law and commercial disputes. The leading legal directories rank Carter-Ruck in the top tier of media, defamation and privacy lawyers in the UK.
Lobbying in the United Kingdom plays a significant role in the formation of legislation and a wide variety of commercial organisations, lobby groups "lobby" for particular policies and decisions by Parliament and other political organs at national, regional and local levels.
Ian Bramwell Greer was a British political lobbyist whose career was affected by the cash-for-questions affair.
David Hencke is a British investigative journalist and writer, named "Political Journalist of the Year" at the 2012 British Press Awards.
The nature of the activities of advocacy groups is highly dependent on the scope and extent of a group's aims and objectives. Motives for advocacy group action may be based on a shared political, religious, moral, health or commercial position. Groups use various methods to try to achieve their aims including lobbying, media campaigns, publicity stunts, polls, research, and policy briefings. Some groups are supported or backed by powerful business or political interests and exert considerable influence on the political process, while others have few or no such resources.
↑ Williams, Kevin (1997). "'Only Flattery is Safe': Political Speech and the Defamation Act 1996". Modern Law Review. 60 (3): 388–393. doi:10.1111/1468-2230.00087.
↑ Jonathan Boyd Hunt, Trial by Conspiracy: Story of How Mohamed Al-Fayed and "The Guardian" Put an Innocent Man in the Dock - and Why p.29, Greenzone Publishing, October 1998 ISBN0473051230
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