President-elect Donald Trump's pick to run the Pentagon, Pete Hegseth, is fighting for his political future after a series of allegations against him have raised concerns about his suitability to run the world's largest defence department.
Until he was nominated last month, Mr Hegseth had been working as a Fox News presenter who was a fierce on-air defender of Mr Trump. He is a former Army National Guard major and combat veteran who served in Iraq and Afghanistan but has no experience leading a major bureaucracy or government department.
His relatively thin CV for running the vast US military with an annual budget approaching $1 trillion had already raised eyebrows in Washington. But past behaviour, particularly his treatment of women, is drawing new scrutiny and several US outlets including The Wall Street Journal have reported that the Trump transition team is considering Florida Governor Ron DeSantis to run the Pentagon instead.
The team did not immediately respond to a request for comment.
Mr Hegseth’s mother Penelope wrote in an email to her son in 2018 that was obtained by The New York Times that he had routinely mistreated women for years.
Mr Hegseth, 44, has also settled a sexual assault claim from 2017. No charges were filed in that or any allegation and he has denied any wrongdoing.
"I have no respect for any man that belittles, lies, cheats, sleeps around and uses women for his own power and ego," Ms Hegseth wrote to her son, according to the newspaper. "You are that man (and have been for years) and as your mother, it pains me and embarrasses me to say that, but it is the sad, sad truth.
The mother appeared on Fox News on Wednesday morning to say she had written that email "in haste", with "deep emotions", and had retracted it within hours of hitting send.
"He loves his country," Ms Hegseth told Fox. "Loves his country. He's fought and almost died for his country. He's a good dad. He's an amazing son and father, and that's the Pete I want people to know."
Mr Hegseth on Wednesday wrote on X that he is the victim of a smear campaign and said he would "never back down".
"The press is peddling anonymous story after anonymous story, all meant to smear me and tear me down. It’s a textbook manufactured media takedown," he later wrote in an op-ed at the Wall Street Journal. "They provide no evidence, no names, and they ignore the legions of people who speak on my behalf."
Mr Hegseth, who won two Bronze Stars for his deployments overseas, has railed against what conservatives dismiss as a “woke” Pentagon that they say is more concerned about attracting diverse recruits than it is on fighting wars. He has spoken out against women fighting in frontline combat roles, which could be an issue were he to run the US military, which has about 2 million active and reserve troops – more than 17 per cent of whom are female.
Another accusation came from 10 former and current Fox employees, who told NBC News they were concerned about the amount of alcohol Mr Hegseth drank.
Replacing Mr Hegseth would be awkward for Mr Trump as he tries to project an image of total control of the Republican Party. Already two of his selected nominees have withdrawn from consideration after facing backlash from within the party. Former US congressman Matt Gaetz, who Mr Trump had nominated as attorney general, pulled out amid allegations of sexual misconduct, which he has denied.
Chad Chronister, who was picked to lead the Drug Enforcement Administration, on Tuesday said he would not be doing so after some conservatives criticised his actions as a Florida sheriff enforcing lockdowns during the Covid-19 pandemic.
The specs: 2018 Nissan Patrol Nismo
Price: base / as tested: Dh382,000
Engine: 5.6-litre V8
Gearbox: Seven-speed automatic
Power: 428hp @ 5,800rpm
Torque: 560Nm @ 3,600rpm
Fuel economy, combined: 12.7L / 100km
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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UAE currency: the story behind the money in your pockets
