London - Amid preparations for the upcoming G20 Summit in India next month, Rishi Sunak is finding himself entangled in a potential conflict of interest dilemma. Concerns are surfacing surrounding allegations that his family could potentially reap financial benefits from an ongoing post-Brexit trade agreement being negotiated with India.
British newspaper The Observer has reported that UK parliamentarians and trade experts are raising questions about "transparency" in relation to the ownership stake held by Sunak's wife, Akshata Murty, in Infosys, an IT giant based in Bengaluru. The company was co-founded by Sunak's father-in-law, Narayana Murthy.
The involvement of Infosys in the trade deal has led some Labour lawmakers to urge Sunak to provide more detailed information about his wife's financial interests. This comes as Infosys could potentially gain from the trade deal. Moreover, suggestions have been made that Sunak should consider recusing himself from the trade negotiations.
Darren Jones, the Labour chair of the business and trade select committee, emphasized the significance of properly declaring interests, stating, "As the prime minister recently learned, it's important he declares any interests properly. I expect him to do so in respect of the India trade deal too." This development coincides with the UK Prime Minister of Indian origin's plans to attend the G20 summit in New Delhi, where discussions regarding trade negotiations between the two countries are expected. Recently, British Trade Secretary Kemi Badenoch engaged in intensive discussions about the potential trade deal following her return from India.
According to The Observer, Infosys aims to improve access for its contract workers to the UK through changes in the visa regulations. This objective aligns with India's request for more visas, especially in sectors like IT and artificial intelligence. Meanwhile, the UK is seeking tariff reductions for its exports to India, including products such as Scotch whisky and automobiles.
As sensitivities surrounding the trade negotiations grow, reports suggest that the UK Foreign Office has discouraged a committee trip to India this autumn to assess potential issues related to the deal. Furthermore, the UK Foreign Office has indicated that it cannot facilitate meetings with Indian officials and business figures.
The substantial part of the combined wealth of Akshata and Sunak is tied to Infosys, with an estimated valuation of around 50 billion pounds. The company, co-founded by Akshata's father, Narayana Murthy, in 1981, has generated significant dividends for the couple, reportedly around 54 million pounds, over a span of seven years.
This recent conflict of interest controversy adds to Sunak's prior criticism by the UK parliamentary watchdog for not appropriately disclosing his wife's ownership in a childcare firm that benefited from government policy changes.