Foreign Governments Pay House of Lords Members Over £3 Million in Two Years

Payments from several repressive regimes raise concerns over potential conflicts of interest among peers.

Members of the House of Lords have received over £3 million in payments from foreign governments during the last two years, with a significant portion coming from Middle Eastern nations known for contentious human rights records, such as Saudi Arabia, Bahrain, Kuwait, Qatar, Kazakhstan, and Azerbaijan.

A total of 27 peers have reported earnings from these foreign states for various consultancy and legal services.

Philip Hammond, a former UK chancellor and foreign secretary, is among the highest recipients, declaring payments amounting to £816,000 from Saudi Arabia, Bahrain, and Kuwait.

This situation has attracted criticism from advocacy groups, which argue that peers should not engage in consultancy roles with countries whose values regarding human rights conflict with the UK's ethical standards.

Under current House of Lords regulations, there are no outright bans on members accepting payments from foreign states, provided that they disclose the nature and amount of their compensation.

Notably, peers are only required to register fees received from foreign governments or institutions perceived to be under foreign state control, following a rule change in 2021 aimed at addressing concerns about foreign influence in UK politics.

Lords authorities have cautioned members to exercise heightened vigilance when working with representatives from regimes characterized as corrupt or repressive.

Tom Brake, of the reform group Unlock Democracy, expressed the potential for conflicts of interest arising when UK legislators are financially linked to foreign entities.

Hammond noted his engagement in various sectors unrelated to his parliamentary obligations and asserted compliance with all relevant rules and guidance from the House of Lords authorities.

He emphasized that the oversight framework ensures transparency in his external roles.

A detailed examination revealed that fourteen peers have received funds from five authoritarian Middle Eastern nations, including five individuals who collectively earned nearly £700,000 from Bahrain.

Gerry Grimstone, a former minister of state for investment, has reportedly received £150,000 to support Bahrain's modernization efforts through his consultancy, Equilibrium Global.

Other peers include Alex Carlile, who received at least £100,000 from Qatar over the last two years, and provides advisory services alongside John Scarlett, a former head of MI6, without participating in any parliamentary discussions relating to his clients.

From outside the Middle East, Archie Hamilton, a former defense minister, is compensated £60,000 annually as a director of FM Capital Partners, a company linked to the Libyan government.

Mark Sedwill, a previous cabinet secretary, has also been paid at least £100,000 for advice to Temasek, Singapore’s sovereign wealth fund.

Five peers operating as barristers have also accepted payments for legal advice from various foreign governments, including David Pannick, who has provided legal counsel to the Bahamas.

Pannick defended the practice of lawyers advising foreign governments, asserting that as long as interests are declared, there should be no ethical concerns.

Peter Goldsmith, former attorney general, reported earnings exceeding £95,000 from legal advisory work with Azerbaijan, Israel, and South Korea.

Several of the peers involved, including Grimstone, Carlile, Hamilton, and Goldsmith, did not provide comments on these transactions.