Select Committee on Standards and Privileges First Report


APPENDIX 33

References to Appendices Nos. 1-7 within this submission refer to the Appendices to Mr Hamilton's submission.

Submission to Sir Gordon Downey by Neil Hamilton MP

  "For 30 years I have done business in the City. Show me one man who has doubted my word:"  (Mohamed Fayed quoted in the Daily Mirror 21 October 1994)

  "The Fayeds are found to have lied about their origins again and again; they produce birth certificates they knew to be false. Above all they lied about their wealth . . . inspectors need extra resources if they are to check out cock-and-bull stories of the Al-Fayed variety . . . It is a question of deceit and its rewards . . . The Fayeds' dishonest acquisition of Harrods . . . must rank as one of the biggest financial rip-offs of the century."
  (Editorials from The Guardian, edited by Peter Preston, 8 and 9 March 1990).

  "There is simply no question of The Guardian in October 1994 `rehabilitating' Mr Al-Fayed or `forgetting' what it had published about him 4 years previously:"
  (Peter Preston Witness statement 26 June 1995).

  "the lies of Mohamed Fayed and his success in `gagging' the Press created new fact: that lies were the truth and that the truth was a lie:"
  (DTI Inspectors' Report 1990 paragraph 8.6.6).

CONTENTS

Introduction
Paras
CHAPTER 1: MOHAMED FAYED'S ALLEGATIONS AGAINST ME 1-50
Fayed the inventor of the "Cash for Questions" hoax, The Guardian his enthusiastic accomplice 5-8
Fayed and The Guardian bad faith revealed
Prejudicial publicity surrounding Channel 4"Dispatches" and The Guardian's book "Sleaze" 8-25
Fayed the sole source of the "Cash for Questions" hoax26-30
Fayed an inveterate liar31-33
Fayed's base motives34-35
Fayed's malicious and vengeful character36-41
Christoph Bettermann - a suitable case for the Fayed treatment42-50
CHAPTER 2: FAYED'S ALLEGATIONS AGAINST HAMILTON AND GREER51-132
(A) FAYED'S FIRST SET OF ALLEGATIONS51-52
The Guardian 20 October 1994 - Cash for Questions
(B) FAYED'S SECOND SET OF ALLEGATIONS53-62
The Guardian's Defence 14 December 1994 - the three cheques53-54
Michael Cole contradicts Fayed's account55-56
Three basic falsehoods57-62
(1) No £50,000 fee 57
(2) The three cheques 58
Royston Webb confirms no improper payments to Gree59
(3) The allegation of £2,000 per Question for 17 Questions60-62
(C) FAYED'S THIRD SET OF ALLEGATIONS63-132
Direct cash payments63-64
Fayed the soft touch65-72
Fayed changes his evidence73-79
Fayed's predilection for cash80-83
The cheques for £12,000 and £6,00084-85
The cheque for £13,33385-86
Fayed's story confused and confusing
Who paid what to whom?87-88
Fayed attempts to square the payments circle89-104
Comparison of Smith and Hamilton's Parliamentary Activity (including tables of analysis) 99
Fayed's selective amnesia105-109
The gift vouchers110-132
Hencke and Preston - gaps in the memory110-118
Michael Cole the media manipulator119-122
Can Fayed vouch for the vouchers? - further inconsistencies123-127
The forgotten witness - Timothy O'Sullivan128-132
(D) FAYED'S FOURTH SET OF ALLEGATIONS133-158
Fayed's last minute employee-witnesses
The Guardian's draft amended Defence133-135
(A) The security guard - Philip Bromfield136-143
(B) The secretary and the personal assistant Iris Bond and Alison Bozek144-146
(a) Addresses of the invoices
(b) £5,000 bundles or £2,500 - Bond contradicts Fayed
(c) New allegations of £5,000 cash per quarter for
(d) Greer's alleged telephone calls asking for cash
(e) Bond and Bozek disagree - where was Greer's cash delivered?
(f) Why would Fayed do the stuffing?
(g) Greer more memorable than Hamilton
(h) Bond/Bozek inconsistencies - the cash totals
(i) A blizzard of cash. How many payments?
(j) The Ritz cash advance, Tricks of memory
Bozek's previous lies 147
Why were these employees two years late in coming forward?148-150
Fayed the amnesiac 151
Compendium of Fayed's allegations152-153
Two obvious questions 154
Other obvious questions Hencke never asked155-157
Rusbridger blows the gaff 158
CHAPTER 3: THE BACKGROUND TO FAYED'S LIES159-180
Fayed's introduction to Greer160-161
Fayed and Greer - who approached whom? 162
MPs for "rent" or for "hire"163-171
Why target Grylls, Hamilton and Smith?172-180
CHAPTER 4: THE ROLE OF The Guardian181-237
Peter Preston takes dictation from Fayed181-186
The strange case of the missing cash payments 187
Hencke's interviews July 1993 - confusion of memory188-193
My letter to Preston September 1993194-199
The Guardian castigates Fayed as an incorrigible liar200-202
Peter Preston the willing dupe203-206
Preston's introduction to Fayed207-209
Preston is not convinced by all Fayed told him210-213
Two lies not printed by The Guardian214-215
Peter Preston's failure to take adequate notes216-219
The Guardian's documentary "proof" proves nothing220-221
Hencke puts the words in Fayed's mouth222-225
The Guardian ambush me and lie about it afterwards226-229
Recent examples of Guardian bad faith: "Dispatches" and "Sleaze"230-237
CHAPTER 5: CHRONOLOGY OF FAYED'S WOOING OF THE PRESS238-291
Peter Preston and The Guardian - June 1993238-242
Fayed's contacts with The Sunday Times243-251
Brian Hitchen and The Sunday Express252-253
Fayed's letter of congratulation253(2)
Fayed's meeting with Ian Greer on 22 September 1994254-259
Fayed's motives259-291
Conversations with Brian Hitchen260-263
Hitchen's meeting with the Prime Minister 30 September 1994264-265
Conversations with Peter Preston266-267
Revelations since October 20 1994 of Fayed's motives268-273
Scrupulous conduct as Corporate Affairs Minister274-291
CHAPTER 6: FAYED'S CONDUCT ANALYSED ACCORDING TO DTI INSPECTORS' CRITICISMS292-361
1. FAYED LIED295-298
(a) Witness Statement 23 June 1995 295
(b) Guardian article 20 October 1994 296
(c) Fayed lies told to other newspapers 297
(d) Fayed lies told to Preston and Hencke 298
2. FAYED PRODUCED FORGED DOCUMENTS299-303
3. FAYED LIED TO PROFESSIONAL ADVISERS AND OFFICIAL AGENCIES304-308
4. FAYED LIED TO THE PRESS 309
5. FAYED PRONE TO EXAGGERATION310-313
6. FAYED'S LIES MUTATE AS CIRCUMSTANCES CHANGE314-337
(a) Cash for Questions314-319
(b) Cash for Greer 321
(c) Gift vouchers321-326
(d) 1987 Election Fighting Funds327-332
(e) No witnesses to alleged cash handovers333-337
7. FAYED PRONE TO MAKE DISHONEST ASSERTIONS WITHOUT SUPPORTING EVIDENCE338-339
8. FAYED PROCURED FALSE WITNESSES340-360
(a) Philip Bromfield341-347
(b) Iris Bond348-354
(c) Alison Bozek355-360
9. FAYED THE CHARACTER ASSASSIN 361
CHAPTER 7: ANALYSIS OF LIES AND ERRORS IN FAYED'S AND The Guardian's Witness Statements362-473
1. Mohamed Fayed 362-399
2. Peter Preston 400-433
3. David Hencke 434-473
CHAPTER 8: LATE DEVELOPMENTS474-594
The late appearance of crucial documents and witnesses to support the Fayed allegations474-479
Why was the telephone message pad produced but not the security records?480-486
The message relating to 2 June 1987487-490
The messages relating to December 1988491-494
Fayed's employee witnesses' evidence is suspect495-500
Bozek and Bond's excellent memories of Greer and Hamilton501-502
Bozek and Bond's total inability to remember anyone else503-542
Bozek remembers no-one apart from Greer and Hamilton504-509
Douglas Marvin510-522
Tim Smith523-525
Fayed's office practice526-530
Bozek and Bond's cock-and-bull stories531-535
Bromfield's bogus memories536-539
Amnesia540-542
Analysis of the evidence of Royston Webb543-594
1. Webb not an independent witness543-579
. Webb and the DTI Report 547-555
. The case of Graham Jones and Webb's role in it556-557
. Fayed made false allegation of bribery against Jones - Jones arrested by the police 558-562
. Webb's duplicitous phone call563-565
. Jones exonerated by the police566-568
. Fayed's attempt to obtain DPP prosecution of Jones 569
. Fayed's use of the press to discredit Jones570-574
. Webb's report and its false allegations against Jones 575
. QANTAS investigated and exonerated Jones576-579
2. Webb distanced himself in his evidence from Fayed's alleged improper actions 580
3. Webb was careful in his evidence not to implicate himself in malpractice581-582
4. The Greer/Webb tape-recorded conversation of 20 October 1994583-587
5. Webb and Tiny Rowland 588
6. Other inconsistencies in Webb's evidence 589
7. Webb's role in Fayed's dirty tricks department590-594
CHAPTER 9: ANALYSIS OF FAYED'S ORAL EVIDENCE TO THE INQUIRY595-664
1. Fayed's memory too untrustworthy to be relied on595-604
2. Fayed's oral evidence contradictory
(a) The D J Freeman letter of 5 December 1994605-609
(b) The Ritz610-611
(c) Fayed confused about the chronology 612
(d) Balnagown 613
(e) Dinner invitations of the House of Commons 614
(f) House of Commons gifts615
(g) Andrew Bowden616
(h) Timing of initial alleged payments617-621
(i) Length of time alleged cash payments continued - Hamilton622-623
(j) Length of time cash payments continued - Smith624
(k) The amounts alleged to have been paid - Hamilton625
(l) The amounts alleged to have been paid - Smith626
(m) The amounts alleged to have been paid - Bowden627
(n) Royston Webb's evidence628-630
(o) The alleged "group" of MPs631-632
(p) The alleged quarterly payments of £5,000 to Greer633-640
(q) The secretaries as witnesses to the alleged Hamilton payments641-646
(r) Fayed's age647
(s) Fayed's bugs648
(t) Fayed's alleged sense of "public duty" or "conscience"649-652
(u) No response to Fayed's letter653-654
(v) Fayed's claim that Greer knew about direct cash payments655
(w) The size of the vouchers656
(x) Broad hints about shopping657-664
CHAPTER 10: ISSUES ARISING FROM MY OWN ORAL CROSS-EXAMINATION665-778
The Heseltine/Butler memorandum665-691
The value of Fayed's gifts692-697
Mislaid diaries698
The Greer 1987 election funds699
Alleged meeting with Fayed 2 June 1987701-704
Financial temptations in June 1987?705-707
Alleged meeting with Fayed 18 June 1987708
My role compared with Tim Smith709-713
Draft letter to Douglas Hurd714-715
Dale Campbell-Savours716-717
"Tim Smith drops by the wayside"718-720
Preston's (and Hencke's) notes721-723
Fayed telephone message - alleged meeting before Christmas 1988724-728
Foreign currency for holiday in France September 1987 729
The question of registrability of gifts, hospitality etc., before 1991-92730-739
Alleged request to return to the Ritz740-743
Did I drop Fayed after the DTI report?744-747
Commission payments748-753
The air tickets to New Orleans754
Tax treatment of costs of attending Republic Party Convention755
Tax treatment of commission payments756-764
Bank account details765
£40,000 loan from my father766
"Cash for questions" a Fayed invention768-772
US Tobacco lobbying773-778

APPENDICES

APPENDIX 1: Channel 4 and Fourth Estate Press Releases

APPENDIX 2: DTI Inspectors' Report on House of Fraser Holdings plc.

1. Fayed lied

.    Examples of Fayed's lies to advisers

2. Fayed produced forged documents and denounced genuine documents as forgeries

3. Fayed lied to his professional advisers and official agencies

(a)   Lawyers

(b)   Merchant bankers

(c)   Official agencies

4. Fayed lied to his public relations advisers and the Press.

5. Fayed prone to exaggerate as well as lie.

6. Fayed's lies mutate as circumstances change.

7. Fayed - an evidence free zone.

8. Fayed procured false witnesses

9. Fayed the character assassin

(a)   Peter Wickman

(b)   Adnan Khashoggi

(c)   Dr Ashraf Marwan

10. Fayed a fraudster

11. Fayed the fantasist

Inspectors' overall conclusions.

APPENDIX 3: The Case of Christoph Bettermann Fayed employee witnesses -

1. Ian Tew

2. John MacNamara

3. L M Harris

APPENDIX 4: Fayed attempts to intimidate members of the Trade and Industry Select Committee, witnesses and special advisers.

APPENDIX 5: The Khashoggi Affidavit and the Fayed bribe.

APPENDIX 6: The Greer contributions to the 1987 Election fighting funds.

APPENDIX 7: Commission Payments.


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Prepared 8 July 1997