|
5) ANALYSIS OF THE ALLEGATIONS
OF CASH PAYMENTS, DIRECT AND INDIRECT, RELATING TO THE HOUSE OF
FRASER LOBBYING OPERATIONS (Contd.)
f) Documentary Evidence
384. In seeking to substantiate
the allegations of cash payments to Mr Hamilton, the complainants
have drawn upon a number of items of contemporaneous documentary
evidence.
385. Reference has already
been made to the diary entries on the basis of which Mr Al Fayed's
solicitors compiled the schedule of payments contained in his
evidence to the Select Committee on Members' Interests in 1994.
386. However, three entries,
one relating to 1987 and two relating to 1988, from the telephone
message books kept at Mr Al Fayed's office at 60 Park Lane are
also relevant. (It was the references in these books to Ms Bozek
and Ms Bond which had led Mr Douglas Marvin, an American lawyer
working for Mr Al Fayed, to seek witness statements from them
for the libel action, which subsequently formed their written
evidence to this inquiry).[162]
The three entries are examined in turn, in chronological order,
below.
(a) Telephone Message,
27/28 May 1987
387. Although this message
is undated it can be inferred from dated messages either side
of it in the book that it was taken on either 27 or 28 May 1987.
It reads:
"Message for MF [Mr
Al Fayed]. From: Neil Hamilton.
Telephone (4) 0606-6591.
Re Tues at 11.15.
Yes [followed by a
tick]".
388. The telephone number
is that of Mr Hamilton's home in Cheshire. The reference
to "Tues at 11.15" and "Yes" suggests that
the purpose of the call was to confirm Mr Hamilton's attendance
at a meeting fixed for the following Tuesday (2 June). This interpretation
is supported by an entry in Mr Al Fayed's diary for that day which
reads: "11.15: Neil Hamilton".
389. The significance of
the date of this meeting is that it falls nine days before the
1987 general election. It was suggested in support of the allegation
that it would be highly unusual for Mr Hamilton, as a candidate,
to break off from the campaign in Cheshire in order to meet Mr
Al Fayed in London at a time when no lobbying or Parliamentary
action would be possible, unless there was another purpose for
his journey - to collect a payment.
(b) Telephone Message,
dated 28 September 1988
390. This message, which
Ms Bozek confirmed was in her handwriting, reads:
"To: Iris
(crossed out) MF [Mr Al Fayed]
From: Iris
Neil Hamilton 4th
Oct
Cheshire - sh/d she
send envl. by courier (followed by a tick)".
391. The reference to "4
October" tallies with an entry in Mr Al Fayed's diary relating
to a meeting on that day with Mr Hamilton. It was claimed
by the complainants that this message was evidence of Mr Hamilton
arranging for a cash payment to be delivered to him by courier
at his home in Cheshire.
392. To this The Guardian
added in a supplementary submission[163]
that Mr Hamilton and Mr Al Fayed had met on 14 September
and there was no evidence that, over the ensuing fortnight, any
document had been produced of a kind which Mr Hamilton
might have needed to see and which accordingly would have supported
the claim that this, rather than cash, formed the contents of
the envelope.
(c) Telephone
Message, 14/15 December 1988
393. This message, though
undated and untimed, must, because of the dated messages either
side of it in the book, be assumed to have been taken on 14 or
15 December 1988. It says:
"Message for: MF
From: Neil
Hamilton's wife
219 4157 [Mr Hamilton's
House of Commons number]
She was wondering if
it was possible for Mr Hamilton to see you before Christmas.
Neil Hamilton is free tomorrow morning and next Wednesday after
2.30pm any time (not 4.00pm)".
394. The word "tomorrow"
occurs for a second time on a separate line directly above the
words "after 2.30pm". It is not clear whether this
was intended to indicate that the phrase "after 2.30pm any
time" referred to "tomorrow" (ie. the day after
the message was taken). There is a tick across the message.
395. Mr Al Fayed's diary
shows that a meeting was arranged with Mr Hamilton for
15 December at 3.30pm.
396. It was contended by
the complainants that this message lent credence to Mr Al Fayed's
claim that 15 December was one of the dates on which Mr Hamilton
received Harrods gift vouchers totalling £3,000 and that
this would be consistent with his alleged practice of expressing
a wish "to go shopping", particularly in the immediate
run-up to Christmas.
397. Further support for
this line of argument was drawn from the fact that at the time
of Mrs Hamilton's telephone call on 14 or 15 December a meeting
had already been arranged by Mr Greer between Mr Al Fayed and
Sir Michael Grylls, Mr Smith and Mr Hamilton
for 20 December.[164]
Thus, since Mr Hamilton was already aware that he would
be seeing Mr Al Fayed on that day accompanied by other Members,
his only purpose in seeking a separate meeting before Christmas
was to collect a payment - which he knew Mr Al Fayed would only
make in private.
g) Mr
Hamilton's Pattern of Parliamentary and Lobbying Activity
398. The allegation that
the cash payments received by Mr Hamilton were a reward
for the services he had performed for Mr Al Fayed needs to be
judged against the pattern of Mr Hamilton's Parliamentary
and lobbying activity over the relevant years.
399. It should be noted
in this context that, notwithstanding his reference during his
1993 conversation with Guardian journalists to £2,000
as the going rate for a question,[165]
it is not part of Mr Al Fayed's current complaint that there was
any direct link between the pattern of cash payments to Mr
Hamilton and specific actions taken by him. The allegation
is rather that Mr Hamilton promoted the interests of House
of Fraser and that in return he expected to be paid at regular
intervals. Individual demands for payment were, however, justified
by Mr Hamilton, in general terms, on the basis of the work
he was continuing to undertake on Mr Al Fayed's behalf.
400. The documentary evidence
(including Mr Greer's papers, Mr Al Fayed's telephone message
books and diary entries, and Hansard) indicates the following
profile of Parliamentary action and lobbying on the part of Mr
Hamilton in connection with House of Fraser:
1985
- November: tables
two written questions
1986
- 22
January: writes to Mr Al Fayed
- 10
March: attends briefing lunch with Mr Al Fayed
- 19
August: writes to Mr Al Fayed refusing to intervene over sale
of Today newspaper
1987
- February: tables
two written questions
- 10
March: tables Early Day Motion
- 18
March: meets Mr Al Fayed with Mr Greer
- 9
April: meets Sir Andrew Bowden and Mr Smith, with Mr
Greer
- 13
May: takes part in delegation to Secretary of State for Trade
and Industry
- 15
July: attends meeting with Mr Al Fayed, together with other
Members and Mr Greer
- 23
July: writes to Chairman of Stock Exchange and sends copy
to Mr Al Fayed
- 29
July: takes part in delegation to Secretary of State for Trade
and Industry
- 21
November: writes to Secretary of State for Trade and Industry
November: attends
briefing meeting with other Members, Mr Greer and Mr Webb
- 10
December: writes to Mr Al Fayed, apologising for inability
to take part in a delegation to the Secretary of State for Trade
and Industry, but asking for his views to be conveyed to the meeting
1988
- 28
January: writes to Secretary of State for Trade and Industry
- 28
January: writes to Mr Al Fayed
- 29
March: attends briefing meeting with other Members, Mr Greer
and Mr Webb
- May: tables
2 written questions
- July: tables
Early Day Motion
- 29
July: writes to Secretary of State for Trade and Industry
- 1
August: writes to chairman of Lonrho
- 1
September: writes to Mr Al Fayed proposing meeting
1989
- 15
February: asks oral supplementary question alleging Observer
journalist is propagandist for Mr Rowland
- 12
March: writes to Mr Al Fayed
- 21
March: writes to Secretary of State for Defence
writes
to Home Secretary[166]
- April: tables
six written questions
- 7
April: writes to Minister of State at DTI
- 18
April: signs anti-Lonrho Early Day Motion
- 3
May: tables anti-Lonrho Early Day Motion
- 15
May: signs anti-Lonrho Early Day Motion
- 20
June: signs anti-Lonrho Early Day Motion
- 6
December: writes to Home Secretary
401. There is a conflict
of evidence about the letter from Mr Hamilton to the Home
Secretary dated 21 March 1989. In his oral evidence,[167]
Mr Hamilton appeared to doubt whether the letter, which
was drafted for him by Mr Greer, had ever - as The Guardian
claimed it had - been sent and, indeed, this had been one of the
aspects of The Guardian's credibility which he had sought
to challenge. It was pointed out to Mr Hamilton by Counsel
for the inquiry that a copy of the letter had been disclosed to
The Guardian under the discovery process in preparation
for the libel action. Mr Hamilton replied that, whilst
he "might well have sent such a letter", he had been
told by the Home Office that no record existed of the letter having
been received (this statement by the Home Office was supplied
to the inquiry).
402. On the other hand,
a more persuasive indication that the letter was in fact
sent by Mr Hamilton exists in the form of his letter to
the Minister of State at the DTI on 7 April which began: "Enclosed
are copies of my letters to Douglas Hurd and George Younger"
[the then Home Secretary and Secretary of State for Defence respectively].
403. The last payment is
alleged to have been made to Mr Hamilton on 21 November
1989.
404. What followed the ending
of the relationship between Mr Hamilton and Mr Al Fayed
is, however, also relevant to the inquiry since it has been cited
in evidence by both sides.
405. The principal events,
based on the documentary evidence produced for the court case,
were as follows:
1990
- June: Mr
Hamilton suggests a further stay at the Ritz in Paris[168]
- July: Mr
Hamilton is appointed a Government Whip
1992
- 13
April: Mr Hamilton is appointed a junior Minister at
the DTI following the general election
- 15
April: Mr Al Fayed writes a letter of congratulations to Mr
Hamilton
- 30
April: Mr Hamilton accepts the advice of officials
that he should not reply to Mr Al Fayed's letter, particularly
in the light of the then pending action brought by Mr Al Fayed
against the UK Government in the European Court of Human Rights
- 13
May: Mr Hamilton replies to a written question about
the conduct of the Inspectors' inquiry into House of Fraser
- 4
June: Mr Hamilton decides that, in view of his previous
involvement with Mr Al Fayed, he should not take any decisions
related to the European Court of Human Rights case
- June: Mr
Hamilton asks for search of files to trace all his previous
interventions on Lonrho and related matters and decides in view
of the "presentational problem" not to take part in
any decisions on Lonrho proceedings or mergers involving Lonrho
1993
- 22
July: Mr Hamilton is interviewed by Guardian
journalists who put to him the allegations of cash payments from
Mr Al Fayed[169]
- 22/23
July: Mr Hamilton asks for search of files for all
correspondence between him (when a backbencher) and Ministers
about the Companies Act investigation into House of Fraser
- 1
October: Mr Hamilton writes to the editor of The
Guardian in an attempt to forestall publication of the allegations
against him, and threatens libel suit
- 5
October: Mr Hamilton again writes to the editor of
The Guardian confirming that the letter of 1 October was
not for publication and repeats libel action threat; The Guardian
publishes article about Greer, containing reference to the Ritz
story
- 24
November: Chairman of Select Committee on Members' Interests
writes to Mr Hamilton expressing concern at press comments
attributed to Mr Hamilton implying that in 1987 "Members
did not pay close attention to the rules of registration"
- 12
December: Mr Hamilton replies to Chairman of Select
Committee expressing regret for any misunderstanding and denying
any intention to cast doubt on bona fides of Register
1994
- September: Mr
Al Fayed submits, through an intermediary, allegations concerning
Mr Hamilton and other Ministers to the Prime Minister
- 20
October: Guardian publishes "cash for questions"
allegations against Mr Hamilton and Mr Greer
- 21
October: Mr Alex Carlile makes formal complaint to Members'
Interests Committee against Mr Hamilton and Mr Greer
- 25
October: Mr Hamilton resigns as Minister
162 See
para 420 and 453-58. Back
163 See
Appendix 32. Back
164 This
is evidenced by a telephone message to Mr Al Fayed from Mr Greer
dated 13 December 1988. Back
165 See
para 185. Back
166 See
paras 401-2. Back
167 Q
1989. Back
168 For
the detailed account of this suggested visit see paras 579-586. Back
169 Mr
Hamilton denies that any
allegations were put to him, at this meeting, relating to cash
payments (as opposed to the Ritz stay); see paras 415(iv) and
518 to 527. Back
| 
