Louise Haigh says the incident was a 'genuine mistake' in a letter announcing her resignation. Reuters
Louise Haigh says the incident was a 'genuine mistake' in a letter announcing her resignation. Reuters
Louise Haigh says the incident was a 'genuine mistake' in a letter announcing her resignation. Reuters
Louise Haigh says the incident was a 'genuine mistake' in a letter announcing her resignation. Reuters

Louise Haigh resigns as UK transport secretary over historic fraud conviction


Gillian Duncan
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Louise Haigh has resigned as UK transport secretary after it emerged she was previously convicted of fraud.

She pleaded guilty to a criminal offence related to incorrectly telling police that a work mobile phone was stolen in 2013, when she was working as a public policy manager for insurance company Aviva. The Labour MP claimed the phone was taken during a "terrifying" mugging on a night out in London. But she found the phone "some time later" at home and did not tell police.

In a statement released on Thursday night, she said she “triggered police attention” when she turned the mobile on. “I should have immediately informed my employer and not doing so straight away was a mistake,” she said.

She was replaced on Friday by Heidi Alexander, the MP for Swindon South.

Ms Haigh said her solicitor advised her not to comment during an interview and she regrets following the advice. She pleaded guilty at Camberwell Green Magistrates Court and said magistrates gave her the "lowest possible outcome", which was a discharge.

Prime Minister Keir Starmer, who once said of former prime minister Boris Johnson that "you can't be a lawmaker and a lawbreaker", was reportedly informed of the incident years ago, when she joined the shadow cabinet. In a letter sent to Mr Starmer on Friday, Ms Haigh said she was "totally committed to our political project" but believed "it will be best served by my supporting you from outside government".

"I am sorry to leave under these circumstances, but I take pride in what we have done," she wrote. "I will continue to fight every day for the people of Sheffield Heeley who I was first and foremost elected to represent and to ensure that the rest of our programme is delivered in full."

Mr Starmer thanked Ms Haigh for her work on the government's transport agenda. Ms Haigh has been Sheffield Heeley MP since 2015 and held several shadow ministerial and shadow cabinet roles, before being appointed transport secretary when Labour won the general election in July. She spent time as a special constable before entering politics.

Louise Haigh has sent a letter to Prime Minister Keir Starmer to resign from the Labour government.
Louise Haigh has sent a letter to Prime Minister Keir Starmer to resign from the Labour government.

In her letter to Mr Starmer, she wrote: "I gave the police a list of my possessions that I believed had been stolen, including my work phone.

Some time later, I discovered that the handset in question was still in my house. I should have immediately informed my employer and not doing so straight away was a mistake. I appreciate that whatever the facts of the matter, this issue will inevitably be a distraction from delivering on the work of this government and the policies to which we are both committed."

Ms Haigh is the first cabinet minister to resign from Mr Starmer's government, which has faced plunging approval ratings since taking power. Ministers have been criticised over the use of donations for clothing and gifts and for increasing taxes on businesses and the wealthy in the government's first budget.

Ms Haigh was previously mired in controversy over remarks she made about P&O, which jeopardised a planned £1 billion ($1.27 billion) investment in the company's London Gateway container port.

Senior government officials, including Mr Starmer, have since praised DP World, which owns P&O, for going ahead with the investment. The announcement was the highlight of the International Investment Summit held in London last month.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

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“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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  • 2013: The Westgate shopping mall attack, 62 civilians, five Kenyan soldiers and four gunmen are killed.
  • 2014: A series of bombings and shootings across Kenya sees scores of civilians killed.
  • 2015: Four gunmen attack Garissa University College in northeastern Kenya and take over 700 students hostage, killing those who identified as Christian; 148 die and 79 more are injured.
  • 2016: An attack on a Kenyan military base in El Adde Somalia kills 180 soldiers.
  • 2017: A suicide truck bombing outside the Safari Hotel in Mogadishu kills 587 people and destroys several city blocks, making it the deadliest attack by the group and the worst in Somalia’s history.

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Tony Booth, professor of education

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Lord Smith, former Cabinet minister

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