British Prime Minister Rishi Sunak is facing renewed scrutiny following allegations that the Indian IT giant Infosys received preferential treatment for its growth in the UK due to familial connections. The Opposition Labour Party has raised concerns, asserting that Infosys was effectively granted “VIP access” with discussions involving Trade Minister Lord Dominic Johnson during a visit to Infosys offices in Bengaluru last April. The details of the meeting have been brought to light through freedom of information (FOI) requests.
A ‘Sunday Mirror’ report claimed that Lord Johnson discussed Infosys’ UK operations during the meeting and expressed a desire to see a larger Infosys presence in the UK, offering assistance in facilitating that growth. The meeting’s readout reportedly mentioned that Lord Johnson was keen to support Infosys and enhance its presence in the UK.
This development has triggered questions about potential preferential treatment and connections between the British government and Infosys. The situation is further complicated by the fact that Akshata Murty, the wife of Rishi Sunak, holds a 0.91% stake in Infosys, valued at over £500 million. Akshata Murty, who is the daughter of Infosys co-founder Narayana Murthy, received millions in dividends from Infosys in the last financial year.
Labour’s shadow minister Jonathan Ashworth expressed concerns about potential impropriety, especially in the context of previous controversies involving government contracts awarded during the coronavirus pandemic. Ashworth stated, “After the Tories handed billions in taxpayers’ cash to cronies for duff PPE (personal protective equipment), the public will wonder why an outfit so personally close to Rishi Sunak appears to have been granted this VIP access. There are serious questions to answer.”
It’s important to note that Lord Johnson outlined the advantages of the UK’s high-potential individual visa scheme for Infosys during the meeting. The FOI documents indicate that the meeting aimed to reassure Infosys about the prospects for the UK economy and highlight the support available through the Department for Business and Trade (DBT).
The controversy surrounding Infosys and Rishi Sunak is the latest in a series of issues related to the Prime Minister’s wife’s association with the Indian IT firm. Last year, Akshata Murty’s non-domicile tax status, which allowed her to avoid UK tax on her Indian income, drew attention and criticism. Following public scrutiny and opposition pressure, she relinquished her non-dom tax status and committed to paying all her taxes in the UK.
The timing of this latest controversy is particularly sensitive as it comes amid ongoing debates about government integrity, accountability, and potential conflicts of interest. The allegations raise questions about whether Infosys received special treatment due to its connection with the Sunak family and the potential influence of familial ties in government decisions.
A spokesperson for the Department for Business and Trade (DBT) defended the meeting, stating that the investment minister regularly engages with businesses and international investors to promote the UK as an investment destination. The DBT emphasized that such engagements aim to drive investment, create jobs, and boost the UK economy.
This situation adds another layer to the political challenges facing Rishi Sunak, who has been navigating controversies surrounding his family’s financial dealings and potential conflicts of interest. The Prime Minister, in his response to the allegations, underscored the independence of investigating agencies and emphasized that investigating is the work of these agencies. He stated that the agencies are independent, and the Constitution has kept them so, emphasizing that it is for the courts to judge their actions.
As the political landscape evolves, the allegations against Rishi Sunak and the connections between government officials and private entities are likely to remain in the spotlight. The Prime Minister’s assurances of the agencies’ independence and his commitment to fighting corruption will be closely watched as the government addresses these concerns and navigates potential fallout from the ongoing controversies.
