PARLIAMENT - Smith risks ICA expulsion

Disgraced former MP Tim Smith faces a further investigation by the English ICA in the wake of the Downey report into ‘cash for questions’.

Smith, the UK’s most high-profile chartered accountant, faces possible expulsion from the institute after Sir Gordon Downey judged that he ‘persistently and deliberately failed to declare his interests’ over his involvement with Harrods’ boss Mohamed Al Fayed.

Smith, who resigned his ministerial post in 1994, admitted being paid between (UK P)18,000 and (UK P)25,000 by Al Fayed for lobbying services between 1987 and 1989. He only confirmed the payments in 1994, Downey said.

A further question mark hangs over the tax treatment of the payments.

To date, Smith has failed to supply documentation showing that he has paid tax on them.

Downey stated: ‘The way in which these payments were received and concealed fell well below the standards expected.’ Smith’s earlier registering of a financial interest in House of Fraser in 1989 was damned as a ‘disingenuous attempt at concealment’.

Matthew Ives, the institute’s director of professional conduct, said: ‘The contents of the Downey report will be subject to an institute report to the investigation committee.’

That report could be ready for September’s investigation committee meeting and Smith could be called to a private hearing before Christmas to discuss allegations of bringing himself, the institute and accountancy into discredit.

Insiders confirmed expulsion was likely.