Britain's Electoral Commission launched a formal investigation into the funding of renovations to Prime Minister Boris Johnson's Downing Street flat.
The watchdog said on Wednesday that there "were reasonable grounds to suspect that an offence or offences may have occurred".
The inquiry was announced an hour before Mr Johnson faced MPs at an ill-tempered Prime Minister's Questions during which he was challenged over who payed for the renovations.
He was also forced to explain a reported remark that he would rather "let bodies pile high" than order another Covid-19 lockdown.
Mr Johnson repeatedly dodged Labour Party leader Sir Keir Starmer's questions over who initially paid for the renovations.
"I have covered the costs and I think most people will find it absolutely bizarre that he is focusing on this issue," Mr Johnson said.
"This is a government that gets on delivering people's priorities while he continues to raise issues most people find irrelevant to their concerns."
Asked if he believed any rules were broken in relation to the renovations, Mr Johnson replied: "No, I don't.
"What I believe has been strained to breaking point is the credulity of the public," he said. "He goes on and on about wallpaper when I’ve told him umpteen times now I paid for it."
Mr Johnson denied telling a Cabinet meeting on Covid-19 in October he would rather "let the bodies pile high in their thousands" than order another lockdown.
"If [Mr Starmer] is going to repeat allegations like that, he should come to the house and substantiate them," he said.
"They were very bitter, very difficult decisions because no prime minister wants to put this country into lockdown."
Mr Starmer gave Mr Johnson the nickname "Major Sleaze" after a series of recent scandals, an apparent riposte to the "Captain Hindsight" moniker Mr Johnson used for the Labour leader.
“Dodgy contracts, jobs for their mates and cash for access – and who is at the heart of it? The prime minister, Major Sleaze sitting there," Mr Starmer said.
Earlier, the Electoral Commission said it had been in contact with the Conservative Party on the issue of the flat since late March.
"We are now satisfied that there are reasonable grounds to suspect that an offence or offences may have occurred," the Commission said.
"We will therefore continue this work as a formal investigation to establish whether this is the case."
The body said it was examining whether funding of the works fell foul of rules on donations to political parties.
"The investigation will determine whether any transactions relating to the works at 11 Downing Street fall within the regime regulated by the Commission and whether such funding was reported as required," it said.
"We will provide an update once the investigation is complete."
Asked last month about the refurbishment, Mr Johnson's spokeswoman said all donations, gifts and benefits were properly declared, and that no Conservative Party funds were used to pay for the refurbishment.
Mr Johnson has a taxpayer-funded £30,000 ($42,000) allowance each year for maintaining and furnishing his official residence, but any more must be met by the prime minister.
Ministers said Mr Johnson paid for the work himself, but it is unclear when he paid, and whether the refurbishment, reported to have cost £200,000, was financed initially by a loan. Under political financing rules, Mr Johnson would be required to declare this.
The opposition Labour Party demanded an explanation.
Its deputy leader Angela Rayner wrote to Simon Case, the head of the civil service, asking him to investigate comments on the matter by Mr Johnson's press secretary this year.
Allegra Stratton, a former BBC journalist, was the prime minister's press secretary from October until last week.
Dominic Cummings, who was Mr Johnson's key adviser on the Brexit campaign and helped him to win the general election in 2019 before an acrimonious split last year, said Mr Johnson wanted donors to pay for the renovation secretly.
Mr Cummings said he told the prime minister such plans were "unethical, foolish and possibly illegal".
Asked if Mr Johnson received a loan from the Conservative Party for the refurbishment, Transport Secretary Grant Shapps said on Wednesday: "The prime minister has already paid for it."
More on Boris Johnson
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Boris Johnson denies saying he would ‘let the bodies pile high’ during Covid crisis
UK Labour Party calls for inquiry into 'cover-up' of Boris Johnson's flat renovations
The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
Torque: 370Nm
Price: Dh136,814
Company Profile
Company name: NutriCal
Started: 2019
Founder: Soniya Ashar
Based: Dubai
Industry: Food Technology
Initial investment: Self-funded undisclosed amount
Future plan: Looking to raise fresh capital and expand in Saudi Arabia
Total Clients: Over 50
McLaren GT specs
Engine: 4-litre twin-turbo V8
Transmission: seven-speed
Power: 620bhp
Torque: 630Nm
Price: Dh875,000
On sale: now
COMPANY%20PROFILE%20
%3Cp%3EName%3A%20DarDoc%3Cbr%3EBased%3A%20Abu%20Dhabi%3Cbr%3EFounders%3A%20Samer%20Masri%2C%20Keswin%20Suresh%3Cbr%3ESector%3A%20HealthTech%3Cbr%3ETotal%20funding%3A%20%24800%2C000%3Cbr%3EInvestors%3A%20Flat6Labs%2C%20angel%20investors%20%2B%20Incubated%20by%20Hub71%2C%20Abu%20Dhabi's%20Department%20of%20Health%3Cbr%3ENumber%20of%20employees%3A%2010%3C%2Fp%3E%0A
ACL Elite (West) - fixtures
Monday, Sept 30
Al Sadd v Esteghlal (8pm)
Persepolis v Pakhtakor (8pm)
Al Wasl v Al Ahli (8pm)
Al Nassr v Al Rayyan (10pm)
Tuesday, Oct 1
Al Hilal v Al Shorta (10pm)
Al Gharafa v Al Ain (10pm)
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Manikarnika: The Queen of Jhansi
Director: Kangana Ranaut, Krish Jagarlamudi
Producer: Zee Studios, Kamal Jain
Cast: Kangana Ranaut, Ankita Lokhande, Danny Denzongpa, Atul Kulkarni
Rating: 2.5/5
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
2019 ASIAN CUP FINAL
Japan v Qatar
Friday, 6pm
Zayed Sports City Stadium, Abu Dhabi
Getting there
Flydubai flies direct from Dubai to Tbilisi from Dh1,025 return including taxes
Zayed Sustainability Prize
EMIRATES'S%20REVISED%20A350%20DEPLOYMENT%20SCHEDULE
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Scoreline:
Cardiff City 0
Liverpool 2
Wijnaldum 57', Milner 81' (pen)
COMPANY PROFILE
Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed
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.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“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.”
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
The biog
Place of birth: Kalba
Family: Mother of eight children and has 10 grandchildren
Favourite traditional dish: Al Harees, a slow cooked porridge-like dish made from boiled cracked or coarsely ground wheat mixed with meat or chicken
Favourite book: My early life by Sheikh Dr Sultan bin Muhammad Al Qasimi, the Ruler of Sharjah
Favourite quote: By Sheikh Zayed, the UAE's Founding Father, “Those who have no past will have no present or future.”
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
THE BIO
Favourite place to go to in the UAE: The desert sand dunes, just after some rain
Who inspires you: Anybody with new and smart ideas, challenging questions, an open mind and a positive attitude
Where would you like to retire: Most probably in my home country, Hungary, but with frequent returns to the UAE
Favorite book: A book by Transilvanian author, Albert Wass, entitled ‘Sword and Reap’ (Kard es Kasza) - not really known internationally
Favourite subjects in school: Mathematics and science
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
The bio
Favourite book: The Alchemist by Paulo Coelho
Favourite travel destination: Maldives and south of France
Favourite pastime: Family and friends, meditation, discovering new cuisines
Favourite Movie: Joker (2019). I didn’t like it while I was watching it but then afterwards I loved it. I loved the psychology behind it.
Favourite Author: My father for sure
Favourite Artist: Damien Hurst