British expenses scandal claims first minister

16 May, 2009

British Prime Minister Gordon Brown on Friday suspended a junior minister whose expense claims are under investigation in the latest escalation of the embarrassing row. The announcement came after The Daily Telegraph revealed that junior justice minister Shahid Malik claimed tens of thousands of pounds from public funds for a second home while paying below-market rent for his main house.
Malik, the first Muslim minister in Britain's government, is the first minister to be hit by the expenses scandal, which has rocked all three main parties over the last week. His suspension is a new blow to the British premier as he grapples with dismal poll ratings. A new survey Friday put his Labour party on 22 percent, against 41 percent for the main opposition Conservatives. Brown must call a general election by the middle of next year.
A spokesman said the prime minister has asked an independent advisor on ministerial interests, Philip Mawer, to investigate the claims against Malik, adding that Malik would return to his job if cleared. "There have been accusations made in the past 24 hours against Shahid Malik, in particular that he received preferential rent on his main residence," said Brown's spokesman.
"Because that allegation would represent a potential financial benefit... this could represent a breach of the ministerial code." An investigation was therefore launched and "pending the outcome of that investigation, Shahid Malik will be stepping down as a minister. He is not being replaced," he added.
The Daily Telegraph said Malik had claimed 66,827 pounds (102,000 dollars, 75,000 euros) on his London home over three years, while paying less than 100 pounds a week on a house in his constituency he designated his main residence. His claims on the London flat included 2,600 pounds for a home cinema system, although parliamentary authorities only agreed to pay half, and 65 pounds for a court summons for non-payment of council tax.
Malik told the Telegraph he spent the majority of his time at his constituency home and it was right that it be registered as his main property, allowing him to claim expenses on his more expensive house in the capital. In a series of media interviews before the announcement that he was stepping down, Malik protested his innocence.
"I have absolutely nothing to apologise for. I have done nothing wrong. I have not been at the periphery of the rules. I haven't abused the rules, I have been absolutely at the core of the rules," he said. The Downing Street spokesman said Brown had spoken to Malik before taking the decision that he should step down. "These accusations at this point remain accusations and it's important that Sir Philip establishes the facts. Pending the outcome of his establishing the facts, that's the reason why Shahid Malik is stepping down."
Asked if Malik would resume his ministerial duties if cleared, he said: "That would be the expectation." On Thursday, a former minister and lawmaker from Brown's ruling Labour party, Elliot Morley, was suspended after claiming thousands of pounds for a non-existent mortgage.

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