UK Tory MP apologises for failing to declare loan from Russian-born businessman

David Warburton was found to have twice `breached the MPs' code of conduct over the loan

David Warburton, the independent MP for Somerton and Frome. PA
Beta V.1.0 - Powered by automated translation

British MP David Warburton has apologised after he failed to declare a £150,000 ($177,175) loan from a Russian-born businessman.

The member for Somerton and Frome was found to have twice breached the MPs’ code of conduct by neglecting to register or later declare the payment he received from Roman Joukovski, through the overseas company Castlebrook Associates Ltd, in 2017.

Mr Warburton provided a favourable reference of Mr Joukovski to the Financial Conduct Authority in March 2021, before the full repayment of the loan, describing him as “extremely capable and an honest and straightforward person”, which put him under scrutiny.

It was claimed in a complaint to the Parliamentary Commissioner for Standards, Kathryn Stone, that the MP’s actions amounted to paid advocacy, as he was “effectively being paid by Mr Joukovski in the form of a loan”.

But Ms Stone found that, while the payment should have been lodged in the Register of Members’ Financial Interests and later declared in Mr Warburton’s reference to the FCA, the MP was not seeking to confer “a financial or material benefit” on the businessman.

It therefore did not constitute paid advocacy, she said, adding that she was also “mindful” the letter was submitted “substantially outside the six-month time limit set by the House’s paid advocacy rules”.

Oligarchs sanctioned by the UK - in pictures

Mr Warburton told Ms Stone that he did not register the loan at the time because it was “entirely unconnected” with his role as an MP or “any parliamentary activities”.

He also stressed it was “neither free nor at any concessionary rates”.

Detailing the circumstances that led to the reference, Mr Warburton said Mr Joukovski had “occasionally updated” him on efforts to “clear up his past dealings with the FCA”.

Mr Warburton said the businessman told him he had been advised to obtain “personal references”, and he was “delighted” to assist in a private capacity.

He said his “only error in this whole episode” was providing the reference on parliamentary paper, which he acknowledged was “inappropriate”.

Mr Warburton said he did not consider declaring the loan when he wrote to the FCA because it was “completely unrelated in any way” to the reference.

Russian oligarch ships – in pictures

Ms Stone said she was “satisfied on the evidence that the loan had not influenced Mr Warburton’s words or actions as a member”.

She said the MP had agreed to rectify his breach of the rules.

Mr Warburton also wrote to her “accepting my decision, acknowledging and apologising for the breach”.

“As part of the rectification process, Mr Warburton also agreed to have the loan from Castlebrook Associates Ltd belatedly added to the Register of Members’ Financial Interests,” she said.

Mr Warburton is an independent MP.

He had the Conservative whip withdrawn this year after the emergence of allegations of sexual harassment and cocaine use. He is said to have denied any wrongdoing.

Chelsea's Roman Abramovich and other Russians have assets frozen after UK sanctions - video

Updated: November 22, 2022, 5:14 AM