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Letter from D J Freeman to the Chairman
of the Select Committee on Members' Interests
Mr Mohamed Al-Fayed - Mr Neil Hamilton
We act for Mr Mohamed Al-Fayed and he has asked
us to write to you in connection with the complaint made by Mr
Alex Carlile QC MP to the Select Committee on Members' Interests
(of which we understand you are the Chairman) concerning Mr Neil
Hamilton.
Mr Al-Fayed has been contacted by Mr Carlile
who has indicated that you wrote to Mr Carlile on 23 November
seeking further evidence in relation to the relationship between
Mr Hamilton and Mr Al-Fayed. Mr Carlile has been in touch with
Mr Al-Fayed to seek this evidence. Mr Al-Fayed has in turn sought
our advice on how best such evidence might be made available
to the Committee in response to your request.
Mr Al-Fayed is happy to assist the Committee
with its investigations and is in possession of relevant evidence
which the Committee will find of help in considering Mr Hamilton's
conduct.
Our client is however keen to treat the matter
with some discretion and our client has therefore decided on
advice that the evidence which is in his possession should not
be made generally available at this stage but he has instructed
us to set out such evidence in the following paragraphs of this
letter to you as Chairman of the Select Committee on Members'
Interests and in response to your request.
1. We are instructed that Mr Al-Fayed was first
introduced to Mr Hamilton by Ian Greer of Ian Greer and Associates
("IGA"). Mr Al-Fayed retained IGA in October 1985 to
use their lobbying expertise to assist in the campaign which
was being waged by Lonrho following the acquisition of House of
Fraser. In November 1985 Neil Hamilton began tabling questions
in relation to Lonrho. He was one of a small coterie of Members
of Parliament which IGA sought to bring on side to assist in
dealing with Lonrho's campaign against House of Fraser.
2. From 1985 to 1990 Mr Hamilton (along with
other Members of Parliament) asked a number of questions in the
House of Commons, tabled and supported a number of early day motions
and wrote letters to Government Ministers.
3. In return for this service provided by IGA,
we are instructed that Mr Al-Fayed agreed a consultancy fee of
£25,000 per annum plus VAT in November 1985. Such consultancy
fees were, we understand, paid up to 1990. In addition, we are
instructed that Mr Al-Fayed made additional payments of £12,000
and £6,000 in May 1987 and £13,333 plus VAT in 1990.
These payments were also made to IGA though Mr Al-Fayed tells
us that he was told by Mr Greer that they were to place him in
funds so as to make payments to, amongst others, Neil Hamilton
for the work that was being undertaken.
4. In addition to payments to IGA, Mr Al-Fayed
has instructed us that, at the request of Mr Hamilton, he made
a number of cash payments to Mr Hamilton direct in 1987, 1988
and 1989 on occasions where Mr Al-Fayed met Mr Hamilton at either
Harrods or at Mr Al-Fayed's London residence at 60 Park Lane London
W1. On a number of occasions, also at the request of Mr Hamilton,
Mr Al-Fayed gave Mr Hamilton Harrods gift vouchers. We set out
below the dates of the meetings when, we are instructed, sums
were paid and the amounts and details. Appended to this letter
are copies of the relevant entries from Mr Al-Fayed's diary confirming
the meetings.
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| Date | Amount | Details |
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| 2 June 1987 | £2,500 | Cash
£50 notes |
| 18 June 1987 | £2,500 | Cash £50
notes |
| 8 July 1987 | £2,500 | Cash £50 notes |
| 18 February 1988 | £2,500 | Cash £50 notes |
| 19 July 1988 | £2,500 | Cash £50 notes |
| 4 October 1988 | £2,500 | Cash £50 notes |
| 15 December 1988 | £3,000 Harrods gift vouchers | £100 denominations |
| 25 January 1989 | £2,500 | Cash £50 notes |
| 16 February 1989 | £1,000 Harrods gift vouchers | £100
denominations |
| 20 February 1989 | £1,000 Harrods gift
vouchers | £100 denominations |
| 27 July 1989 | £2,500 | Cash
£50 notes |
| 21 November 1989 | £3,000 Harrods gift
vouchers | £100 denominations |
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5. In addition, we are instructed
that Mr Hamilton received Harrods Christmas hampers of value £185
each in 1988 and 1989.
6. We believe the details of Mr Al-Fayed's offer
to Mr Hamilton to visit the Ritz in Paris and his stay there
are well known and documented but Mr Al-Fayed would be happy to
supply further details in relation to this if the Committee did
not have such details. Mr Al-Fayed tells us that Mr Hamilton and
his wife also spent a long weekend at Mr Al-Fayed's private castle
in Scotland, Ballnagowan. Mr Al-Fayed arranged for a private cottage
to be made available for Mr and Mrs Hamilton. The date of this
visit was some time in 1989 but Mr Al-Fayed is unable to be more
specific on the date at this stage.
Our client anticipates that once the Select
Committee has considered this letter, it may wish to call him
to give oral evidence to the Committee of these matters. Mr Al-Fayed
is happy to give such evidence and has asked us to indicate that
he feels strongly that such evidence should be given in public
and not in private.
Please do not hesitate to contact us if we or
our client can be of any further assistance.
5 December 1994
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