Leading Conservative politician Tobias Ellwood fears that leaking of ministers' private conversations could hamper government decisions. Getty
Leading Conservative politician Tobias Ellwood fears that leaking of ministers' private conversations could hamper government decisions. Getty
Leading Conservative politician Tobias Ellwood fears that leaking of ministers' private conversations could hamper government decisions. Getty
Leading Conservative politician Tobias Ellwood fears that leaking of ministers' private conversations could hamper government decisions. Getty

Broken confidentiality means no one will say anything of value in UK government meetings


Thomas Harding
  • English
  • Arabic

Fears that UK ministers' private conversations might be publicly reported could cripple government decisions, a leading Conservative MP told The National.

With the continued furore engulfing Downing Street over allegations that Prime Minister Boris Johnson said "let the bodies pile high" during a conversation with advisers about the pandemic, Tobias Ellwood condemned the damaging culture of breaching confidentiality.

He criticised Mr Johnson's former chief adviser Dominic Cummings, who is accused – but strongly denies – leaking information, labelling him "an agitated ex-employee".

“It's a privileged position to work in government and people should be free to say what they’d really like to, knowing that it's not going to be reported,” the chairman of the Defence Committee said.

“Now everybody in a meeting is going to be so shy to say anything of value, which is a wider concern as to where politics is going today, that it is so sanitised that people are scared of saying anything for fear of it being repeated by a disgruntled employee.”

He said many in the Conservative Party were disillusioned by Mr Cummings's actions since leaving government in December.

There are also concerns that the controversies over the refurbishment of the prime minister's flat and the leaking of WhatsApp messages could prove a dangerous distraction as the UK tries to vaccinate its population before another wave of Covid-19 arrives.

“What's on most people's minds at the moment is how we can plot a way forward out of this pandemic, so distractions like this are dangerous,” said the former defence and foreign minister.

Mr Johnson’s Labour opponents believe that if the Conservatives fare badly in local elections on May 6 as a result of the current revelations, his position as prime minister could be under threat.

"The elections are going to be a real test and there are a lot of people who are hungry for his job," Sarah Champion, the Labour chairwoman of the International Development Committee told The National.

“Politicians can smell blood and I think there's a lot of it around at the moment from a lot of different directions, so I think he's in a very vulnerable position.”

Addressing who paid for the renovation of the private flat at Downing Street, Mr Ellwood said the matter needed clarification, and suggested that Britain should adopt the American system under which a trust is in place to pay for upgrades to the White House.

With an ongoing row over WhatsApp messages between Mr Johnson and the entrepreneur James Dyson, Mr Ellwood suggested that code of conduct guidelines for politicians should be updated for the modern age.

The prime minister’s messages were in response to Mr Dyson’s request for easing taxation rules for his overseas workers after an urgent request to build ventilators at the beginning of the pandemic.

“The ministerial code hasn't kept up with the use of mobile phones, but that's how it’s done all the time now to communicate,” Mr Ellwood said. “There was an emergency – Dyson is an entrepreneur and he offered to make ventilators and if you see what's happening in India now, then that benefited us. You have to be able to make these things work.”

However, critics say politicians must follow protocol so their decision-making is transparent.

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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.

“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.”