MPs Join Calls for Ministerial Scrutiny of Barclay Family's Telegraph Proposal

A group of MPs, led by former Conservative leader Iain Duncan Smith, have urged government ministers to scrutinize the Barclay family's proposal to transfer the Telegraph's ownership to a consortium with United Arab Emirates backing under the national security law.

They argue that the deal presents a potential threat to national security.

The 18-member group, which includes Alicia Kearns, head of the foreign affairs committee, addressed their concerns to Deputy Prime Minister Oliver Dowden, highlighting the deal's risk due to heightened geopolitical tensions and the UAE's growing influence and relations with Beijing.

US-based RedBird Capital and Abu Dhabi's International Media Investments (IMI) have formed the consortium RedBird IMI, offering to clear the Barclay's debt with Lloyds bank. IMI is notably funded by UAE's Sheikh Mansour bin Zayed al-Nahyan.

As Lloyds, the Barclays, and RedBird IMI prepare to notify Culture Secretary Lucy Frazer about the debt repayment, she faces a Friday deadline to decide on a formal probe into the acquisition on public interest grounds, involving regulators like Ofcom.

However, the MPs suggest that the government should also apply the National Security and Investment Act to thoroughly examine the takeover, which would effectively place the Telegraph under majority UAE government ownership.

They point out that the US is already inspecting UAE-related transactions on security grounds. Despite this, it's uncertain whether the Act applies, as it was instituted to safeguard critical infrastructure and does not explicitly list newspapers as a communication sector.

The MPs' Wednesday letter echoes previous concerns from other MPs to Dowden. Meanwhile, Foreign Office officials reportedly wanted to soften the intervention letter from Frazer due to the UK's interest in improving ties with the UAE.

Jeff Zucker, heading RedBird IMI and former CNN executive, has assured that the Telegraph would retain editorial independence, labeling IMI as a "passive" investor. However, concerns remain due to the UAE's stance on free speech and its contentious diplomatic ties, as pointed out by former foreign secretary Lord Hague and Lord Moore, ex-Telegraph editor, who argue against allowing the deal to progress.