Home Somerset rules Jacob Rees-Mogg told the standards watchdog over £ 6million in cheap loans

Jacob Rees-Mogg told the standards watchdog over £ 6million in cheap loans

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Multimillionaire Leader of the Commons was able to borrow large sums at low interest thanks to loans from directors

Chief of Commons Jacob Rees-Mogg

Labor has called for an investigation into a £ 6million loan which it says was not correctly declared by House of Commons Leader Jacob Rees-Mogg.

On Sunday, Labor deputy chief Angela Rayner wrote to independent advisor for ministers’ interests Lord Geidt about a series of loans to Mr Rees-Mogg’s company, Saliston Limited, between 2018 and 2020.

In her letter she said that failure to report the Director’s loans worth £ 2.94million per year “allowed Mr Rees-Mogg to borrow a large sum of money. at a very low interest rate “.

She added: “The financial benefit for Mr. Rees-Mogg in this transaction is the difference in the interest he paid on this loan versus a loan he could take on the open market from another. supplier, for example a bank.

“In this transaction, that difference is the value of the financial benefit transferred to Mr. Rees-Mogg, which is financial interest that should have been declared.”

Mr Rees-Mogg borrowed up to £ 2.94million per year in ‘director loans’ from his company Saliston Ltd between 2018 and 2020.








Mr Rees-Mogg has borrowed up to £ 2.94million per year in “director loans” from his company Saliston Ltd
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Picture:

Getty Images)




While it does not specifically identify director loans, the Member’s Code of Conduct requires directors to report “taxable expenses, allowances and benefits.”

The House of Commons leader said he was an “unpaid director” and shareholder in the company, but did not mention that he took out the loans.

Using the principal’s loans, he was able to borrow the large sum at very low interest rates.

UK firm Saliston Ltd has previously been described as a ‘holding company’ by Mr Rees-Mogg, with £ 8million in property assets, including a Mayfair house.

Saliston also owns a stake in Mr. Rees-Mogg’s asset management company, Somerset Capital Management LLP, the offshore parent company of Somerset Capital Management (Cayman) Ltd.

He paid just £ 48,945 in interest to Saliston on £ 6million in three-year loans, a rate of just 0.8%.

The deputy Labor leader and fictitious chancellor of the Duchy of Lancaster pointed to an article in the ministerial code which states that “ministers shall ensure that no conflict arises, or can reasonably be perceived to arise, between their public office and their private interests, financial or otherwise “.

After sending the letter, Ms Rayner said: “Jacob Rees-Mogg might think a £ 6million loan is not worth reporting, but the rules apply to him and all other Conservative ministers.

“Boris Johnson and his ministers act like they’re above the rules because they think there is one rule for them and another for the rest of us.



“Labor would stop the rot, overhaul this broken system and establish an independent integrity and ethics commission to root out conservative corruption in our democracy.”

Mr Rees-Mogg has previously defended his use of the loans, which he used to buy a house in Mayfair.

He added that the company, Saliston, is “100% mine” and is declared as such in the register of municipal interests.

In a statement to the Mail on Sunday, which first revealed the history of the loans, he added: “He [Saliston] has no activities that interact with government policy.

“The 2018 loans were mainly contracted for the purchase and renovation of [my home] as temporary cash flow measures.

“All loans were either repaid with interest in accordance with HMRC rules or paid as dividends and taxed accordingly.”


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