Source: Labour Party UK
Shadow Chancellor John McDonnell has challenged the new Chancellor Rishi Sunak to answer a series of questions about his past business dealings.
The call came following revelations that Sunak’s close associate Patrick Degorce participated in a multi-million pound tax avoidance scheme, Sunak’s old firm TCI Fund Management (UK) was sued for violating disclosure requirements under American law while Sunak worked at the firm, TCI Fund Management has had links to privatised healthcare, and TCI Fund Management appears to have been part of a web of companies with Cayman Islands links.
“Clearly Mr Sunak has questions to answer about his past activities and associations.”
Notes to Editors:
- In 2013, the Financial Times reported that Patrick Degorce (co-founder of TCI Fund Management, where Rishi Sunak worked from 2006 on, and chief investment officer at Theleme Partners, where Mr Sunak worked from 2010) had been ordered to repay about £8m in tax after it was found that he had sheltered millions in a film-based tax avoidance scheme. (See https://www.ft.com/content/08775d80-5183-11e5-8642-453585f2cfcd.)
- In a case called CSX Corp v Children’s Investment Fund Management (UK) LLP, decided on 11 June 2008, the UK-based firm in which Rishi Sunak was a partner, TCI Fund Management, was sued for seeking “extraordinary gain” by amassing a position in one of the country’s railroads “without making the public disclosure required”. Two violations of the section 13(d) of the Exchange Act were alleged: the firm did not disclose within 10 days that it had become a controlling owner of CSX. Key actions were taken by the UK-based firm in 2008, while Rishi Sunak was a partner. (See https://casetext.com/case/csx-corp-v-childrens-investment-fund-mgmt.) There was disagreement on the outcome when the case was appealed (https://caselaw.findlaw.com/us-2nd-circuit/1574479.html).
- In 2014, it was reported that TCI Fund Management sought to seize financial control of a major private healthcare institution in Ireland, Blackrock Clinic: https://www.thetimes.co.uk/article/sheehan-and-flynn-battle-for-blackrock-ptfq0z7zrfl. It was not clear what other interests TCI Fund Management has had in private healthcare as part of its investment strategy.
- The US court case observed that TCI Fund Management (UK) was closely connected to TCI Fund Management (Cayman): both were sued together and said to have conducted a coordinated strategy. Both these companies managed TCI Master Fund, a company organised under the laws of the Cayman Islands, according to the decision of the judge. (See https://casetext.com/case/csx-corp-v-childrens-investment-fund-mgmt.)