Secret meetings with Israel: UK’s Indian-origin minister Priti Patel quits

Agencies
November 9, 2017

London, Nov 9: Britain's senior-most Indian-origin minister Priti Patel resigned from her Cabinet post over her unauthorised secret meetings with Israeli politicians, after a meeting at Downing Street with Prime Minister Theresa May.

Patel's position as international development minister had become increasingly untenable after it emerged that she had two further meetings with Israeli officials that were not disclosed through the proper procedure.

In her resignation, Patel again apologised and said her actions "fell below the standards of transparency and openness that I have promoted and advocated".

It follows a week of controversies around a dozen undisclosed meetings she had with other Israelis, including Prime Minister Benjamin Netanyahu, for which she had been forced to apologise.

Her departure from the Cabinet marks an abrupt halt to the meteoric rise of the Gujarati-origin MP, often touted as a potential future leader of the Conservative party and a prime ministerial candidate.

The 45-year-old was elected as a Conservative MP for Witham in Essex in 2010 and gained prominence in the then David Cameron-led Tory government as his 'Indian Diaspora Champion'.

She went on to be appointed to junior ministerial posts, treasury minister in 2014 and then employment minister after the 2015 general election, before May promoted her to secretary of state in the department for international development (DfID) last year.

A longstanding Eurosceptic, Patel is among the most vocal supporters of Brexit and had steered the 'Vote Leave' campaign in the lead up to the June 2016 referendum in favour of Britain's exit from the European Union (EU).

She must have hoped that the storm around her undisclosed meetings in Israel would die down after a formal apology before she flew out to Africa for an official tour of Uganda and Ethiopia yesterday.

But she was unable to attend any of the scheduled meetings as she was ordered to abandon the visit and fly back to London today "at the request of the prime minister".

Earlier this week, Downing Street had said that May had accepted Patel's apology over a series of meetings while she was on holiday in Israel in August without reporting them to the Foreign Office.

But new revelations of further meetings with Israeli officials following that visit had made Patel's position within the Cabinet very precarious.

It is understood that she met Israel's public security minister Gilad Erdan in the UK Parliament complex in early September and an Israeli foreign ministry official Yuval Rotem in New York later that month.

The British premier was reportedly told about the unreported New York meeting during Patel's apology conversation at Downing Street on Monday but only learned about her unreported meeting with Erdan after the talks.

Ministers are required to tell the UK Foreign Office when they are conducting official business overseas, but it emerged that British diplomats in Israel were not informed about any of Patel's meetings - which included a meeting with Netanyahu and other political figures as well as charity organisations.

Opposition parties had been calling for Patel's resignation as minister in charge of DfID and the country's aid budget if it emerged that she had breached the ministerial code of conduct and failed to follow established protocol.

In a letter to May, Labour's shadow Cabinet Office minister Jon Trickett had called on the premier to either call in her independent adviser on ministerial standards to investigate, or "state publicly and explain your full reasons for why Priti Patel retains your confidence".

In her apology statement on Monday, Patel had attributed the unreported meetings to "enthusiasm".

"In hindsight, I can see how my enthusiasm to engage in this way could be misread, and how meetings were set up and reported in a way which did not accord with the usual procedures. I am sorry for this and I apologise for it," she said.

Her conduct had already led May to direct her Cabinet Office to look into tightening the ministerial code of conduct to avoid any such incidents in future.

Downing Street was also forced to deny that Patel's meetings in Israel had led to any change of political stance on the region after it emerged that in the wake of her visit in August, Patel had discussed potentially providing some of Britain's aid money to Israel's armed forces which run field hospitals in the disputed Golan Heights area.

Britain does not officially recognise Israeli occupation of the area, seized from Syria in the 1967 Six-Day War, and DfID was reportedly advised against any such move.

According to an Israeli media report, during her August visit to Israel, Patel also visited an Israeli military field hospital in the Golan Heights.

Manuel Hassassian, the Palestinian ambassador to the UK, said the offer to send aid money to the Israeli army made a mockery of the British government's claim to be "pushing for a two-state solution".

"It was shocking for me a Cabinet minister breaking the ministerial protocol and meeting 12 officials, high-ranking, including Netanyahu," he added.

Patel has been a longstanding supporter of Israel and also a former vice-chairman of the Conservative Friends of Israel group.

Meanwhile, it was also claimed that Patel deliberately avoided facing questions over the issue from MPs in the House of Commons today, by bringing forward her flight to Kenya.

It was left to her junior, DfID minister of state for the Middle East Alistair Burt, to defend his boss' actions in Parliament.

"The meetings were not particularly secret...If I had gone to Israel, I would have wanted a schedule like this," he told MPs.

It was widely believed that the delay in dismissing Patel was because the prime minister was more at ease keeping pro- Brexit MPs close at hand to prevent them doing too much damage as opponents of government decisions on the Tory backbenches.

But with her departure now, May has lost a second senior minister within a week, after Sir Michael Fallon stood down as defence minister amid allegations of inappropriate behaviour towards female journalists.

Another of her close Cabinet allies, first secretary of state Damian Green, is also under investigation over misconduct allegations and Foreign Secretary Boris Johnson has been under fire over his handling of a case involving a British Iranian jailed in Tehran.

The prime minister has been desperate not to shake up her already tenuous hold on Downing Street ever since her decision to call a snap general election in June backfired and lost the Conservative party its majority in Parliament.

But she has been increasingly seen as a weak leader trying to steady a very shaky regime.

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Agencies
June 18,2020

New Delhi, Jun 18: Reliance Industries Ltd on Thursday said it has sold a 2.32 per cent stake in its digital unit to Saudi Arabia's Public Investment Fund (PIF) for Rs 11,367 crore, taking the cumulative fund raising to about Rs 1.16 lakh crore in two months.

Starting with Facebook Inc on April 22, Reliance has sold almost 25 per cent of equity in Jio Platforms - the maximum reports suggest the company intends to dilute to financial investors.

The investment by Saudi sovereign wealth fund is "at an equity value of Rs 4.91 lakh crore and an enterprise value of Rs 5.16 lakh crore", the company said in a statement.

With this investment, Jio Platforms has raised Rs 115,693.95 crore from some of the leading global investment powerhouses at a time when the world is deeply impacted by the coronavirus pandemic, resulting in a recession kind of environment for the global economy.

"With the addition of PIF's investment, Jio Platforms has established partnerships with a marquee set of global financial investors, who will contribute to establishing the Digital Society vision for India," the statement said.

Jio Platforms houses India's biggest telecom firm by subscribers, Reliance Jio. With more than 388 million users, Jio has forced out several rivals and driven consolidation in the sector since entering the market in 2016 with free voice services and cut-price data.

Over the past two months, billionaire Mukesh Ambani's oil-to-telecom conglomerate has announced the sale of about $14 billion of assets, completed a Rs 53,124 crore rights issue and slowed the run rate of new investment by a quarter.

These will help Reliance meet its target of paying off Rs 1.61 lakh crore of net debt by the end of the year.
This is PIF's largest investment into the Indian economy to date.

Ambani, chairman and managing director of Reliance Industries, said, "We at Reliance have enjoyed a long and fruitful relationship with the Kingdom of Saudi Arabia for many decades. From oil economy, this relationship is now moving to strengthen India's New oil (data-driven) economy, as is evident from PIF's investment into Jio Platforms."

Yasir Al-Rumayyan, governor of PIF, commented: "We are delighted to be investing in an innovative business which is at the forefront of the transformation of the technology sector in India. We believe that the potential of the Indian digital economy is very exciting and that Jio Platforms provides us with an excellent opportunity to gain access to that growth."

"This investment will also enable us to generate significant long-term commercial returns for the benefit of Saudi Arabia's economy and our country's citizens, in line with our mandate to safeguard and grow the national wealth of the Kingdom," he said.

The transaction is subject to Indian regulatory and other customary approvals.

Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels.

Prior to this deal, Reliance had sold 22.38 per cent of Jio Platforms to investors including Facebook Inc, securing Rs 104,326.95 crore in eight weeks.

Facebook kicked off the party, investing Rs 43,573.62 crore for a 9.99 per cent stake on April 22. This was closely followed by a further Rs 60,753.33 crore in investment.

Silver Lake - the world's largest tech investor - bought a 1.15 per cent stake in Jio Platforms for Rs 5,665.75 crore on May 4. It invested another Rs 4,546.80 crore for additional 0.93 per cent stake on June 5, taking its total holding to 2.08 per cent
Private equity KKR and Vista Equity Partners have taken 2.32 per cent stake each for Rs 11,367 crore apiece. KKR invested in Jio Platforms on May 22 while Vista invested on May 8.

Abu Dhabi sovereign wealth fund Mubadala Investment Co picked up 1.85 per cent in Jio Platforms for Rs 9,093.60 crore on June 5. Abu Dhabi Investment Authority on June 7 invested Rs 5,683.50 crore for a 1.16 per cent stake in Jio Platforms.

On May 17, global equity firm General Atlantic picked up 1.34 per cent stake in Jio Platforms for Rs 6,598.38 crore.

Global investment firm TPG on June 13 picked up 0.93 per cent for Rs 4,546.80 crore while L Catterton bought 0.39 per cent for Rs 1,894.50 crore.

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News Network
March 21,2020

Rome, Mar 21: Italy on Friday reported a record 627 new deaths from the novel coronavirus, taking its overall toll past 4,000 as the pandemic gathered pace despite government efforts to halt its spread.

The total number of deaths was 4,032, with the number of infections reaching 47,021.

Italy's previous one-day record death toll was 475 on Wednesday.

The nation of 60 million now accounts for 36.6 percent of the world's coronavirus deaths.

Italy has seen more than 1,500 deaths from COVID-19 in the past three days alone.

Its current daily death rate is higher than that officially reported by China at the peak of its outbreak around Wuhan's Hubei province.

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News Network
May 11,2020

May 11: Saudi Arabia will triple its value-added tax rate and suspend a cost of living allowance for state workers, it said on Monday, seeking to shield finances hit by low oil prices and a slump in demand for its lifeline export worsened by the new coronavirus.

Historic oil output cuts agreed by Riyadh and other major producers have given only limited support to prices after they sank on oversupply caused by a war for petroleum market share between the kingdom and its fellow oil titan Russia.

Saudi Arabia, the world's largest oil exporter, is also being hit hard by measures to fight the new coronavirus, which are likely to curb the pace and scale of economic reforms launched by Crown Prince Mohammed bin Salman.

"The cost of living allowance will be suspended as of June 1, and the value added tax will be increased to 15% from 5% as of July 1," Finance Minister Mohammed al-Jadaan said in a statement reported by the state news agency. "These measures are painful but necessary to maintain financial and economic stability over the medium to long term...and to overcome the unprecedented coronavirus crisis with the least damage possible."

The austerity measures come after the kingdom posted a $9 billion budget deficit in the first quarter.

The minister said non-oil revenues were affected by the suspension and decline in economic activity, while spending had risen due to unplanned strains on the healthcare sector and the initiatives taken to support the economy.

"All these challenges have cut state revenues, pressured public finances to a level that is hard to deal with going forward without affecting the overall economy in the medium to long term, which requires more spending cuts and measures to support non-oil revenues stability," he added.

The government has cancelled and put on hold some operating and capital expenditures for some government agencies, and cut allocations for some reform initiatives and projects worth a total 100 billion riyals ($26.6 billion), the statement said.

Central bank foreign reserves fell in March at their fastest rate in at least 20 years and to their lowest since 2011, while oil revenues in the first three months of the year fell 24% from a year earlier to $34 billion, pulling total revenues down 22%.

"The reforms are positive from a fiscal side as greater adjustment is essential. However, the tripling of VAT is unlikely to help that much in 2020 revenue wise with the expected fall in consumption," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.

She said she kept unchanged her deficit forecast of 16.3% of GDP for this year, which already factors in a greater than previously announced spending cut.

About 1.5 million Saudis are employed in the government sector, according to official figures released in December.

In 2018, Saudi Arabia's King Salman ordered a monthly payment of 1,000 riyals ($267) to every state employee to compensate them for the rising living costs after the government hiked domestic gas prices and introduced value-added tax.

DIFFICULT TIMES

A committee has been formed to study all financial benefits paid to public sector employees and contractors, and will submit recommendations within 30 days, the statement said.

In late 2015, when oil prices fell from record highs, the kingdom slashed lavish bonuses, overtime payments and other benefits once considered routine perks in the public sector.

In a country without elections and with political legitimacy resting partly on distribution of oil revenue, the ability of citizens to adapt to such reforms is crucial for stability.

"Tripling the VAT will test the limits of the balance between revenues and consumption as the economy dives into a deep recession. The move will impact consumption and could also lower the expected revenues," said John Sfakianakis, a Gulf expert at the University of Cambridge.

"These are pro-austerity and pro-revenue moves rather than pro-growth ones," he said.

Hasnain Malik, head of equity strategy at Tellimer, said the VAT rise could bring about $24-$26.5 billion in additional non-oil fiscal revenue. The rise would hit consumer spending further but was a needed step towards fiscal sustainability, he said.

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