What Is A Standards Probe In UK? Know The Rules For British MPs And Why PM Sunak Is Facing Inquiry

Rishi Sunak is facing an inquiry related to a Budget policy that could benefit his wife, Akshata Murty, through her business interest in a childcare firm. Here is all you need to know about the case.

A file photo of UK PM Rishi Sunak and his wife Akshata Murty, daughter of Infosys founder MR Narayana Murty

Source : Getty

The Commissioner for Standards in the British Parliament has opened an investigation into Prime Minister Rishi Sunak, with a list of open inquiries posted on its website Monday saying the matter was a "declaration of interest". According to reports, Parliamentary Standards Commissioner Daniel Greenberg is investigating Sunak to ascertain if he properly declared the shareholding of his wife Akshata Murty. 

Amid this, The Guardian reported Wednesday, citing a "much-delayed" new register of ministers' interests, that Sunak has declared his wife's shareholding in a company that could benefit from a new policy of his government. The report said Murty invested in the childcare company, Koru Kids, four years ago. Akshata Murty, daughter of Infosys founder MR Narayana Murty, is a venture capital investor.

Quoting a footnote to Sunak's entry, the report said the PM has declared that Murty has a “minority shareholding” in the company stated above, apart from "a number of direct shareholdings" owned by her. Koru Kids is one of the six firms said to be involved in a pilot scheme of the UK government that aims to incentivise people to become childminders, according to the report.

This is the third standards investigation that Sunak is facing, after being once fined for breaching Covid rules, and the other time for not wearing a seatbelt.

READ | UK PM Rishi Sunak Declares Wife Akshata Murty's Shareholding In Childcare Firm Amid Probe: Report

What Is A Standards Investigation?

Members of the UK Parliament are governed by the House of Commons Code of Conduct and Registers, and the role of the Commissioner of Standards is to monitor the operation of the code of conduct and investigate alleged breaches, if any, according to the UK Parliament website. 

The code of conduct mandates all MPs to "to provide information about any financial interest which might reasonably be thought by others to influence a Member’s actions, speeches or votes in Parliament, or actions taken in his or her capacity as a Member of Parliament".

The parliamentary commissioner for standards is an independent officer of the House of Commons.

The purpose of the code is to know if an MP has received any financial or non-financial benefit that might influence their actions in their capacity as a member. According to the UK Parliament website, the commissioner looks at evidence placed before him against individual MPs, inquires if they have broken the Rules of Conduct or not, and then makes a decision.

The website says a new revised Code of Conduct and The Guide to the Rules relating to the conduct of members came into effect on March 1, 2023, after they were approved by the House of Commons on December 12, 2022. Under the code, all members are required to declare "any financial interests which satisfy the test of relevance", which include past financial interests, particularly those active in the last 12 months, and indirect financial interests, such as those of a spouse/partner or any member of the family, if the member is aware of it, among others. 

The code and guide, however, won’t apply with retrospective effect. Alleged breaches dating prior to March 1 will be dealt with under the rules in force at the time.

Will Rishi Sunak Face Action? 

According to the Guardian report, Downing Street has promised to cooperate with the investigation, and Sunak’s defence would be that he openly declared his wife’s stake in Koru Kids.

The report pointed out that questions have been raised over Sunak’s appearance at the hearing of a select committee where he reportedly suggested that he didn’t have anything to declare in connection with the new incentive scheme for childminders.

However, even if Sunak is found guilty of any breach of the rules, any sanction is likely to be minor, the report said. Quoting parliamentary sources, it said the PM might only be asked to make a correction if he admitted a breach.