A top businessman named as a “person of interest” in a global money laundering investigation has been revealed as a major Tory donor.
Javad Marandi, who was awarded an OBE for business and philanthropy, was identified after losing a 19-month legal battle to remain anonymous.
He denies any wrongdoing and is not subject to criminal sanction. But the judgment is a win for freedom of the press amid growing privacy laws in the courts.
The businessman, who gave £756,300 to the Conservative Party between 2014 and 2020, was identified as a “person of importance” by a judge in proceedings brought by the National Crime Agency (NCA). Mr Marandi was not a party to those proceedings.
The NCA’s probe began in 2017 when the Organised Crime and Corruption Reporting Project (OCCRP) uncovered a money laundering scheme dubbed the “Azerbaijani Laundromat”. The OCCRP used leaked banking documents to reveal that Azerbaijan’s ruling elites had siphoned $2.9bn (£2.3bn) of public money through companies and banks to buy luxury goods, bribe European politicians and boost the country’s profile abroad.
Last January, a judge ruled the NCA could seize $7m from the London-based family of Javanshir Feyziyev, a member of Azerbaijan’s parliament.
The family’s British bank accounts received cash that had been removed from Azerbaijan. The judge said they used “a significant money-laundering scheme”.
And the NCA’s probe found some entities owned by Mr Marandi played a role in the money-laundering scheme involving one of Azerbaijan’s richest oligarchs.
Mr Marandi’s lawyers sought to have his name withheld from the public during the NCA’s case against the Feyziyev family, arguing that revealing his identity would cause “profound and irremediable” damage to his reputation.
But last year, Westminster Magistrates’ Court decided the media could name Mr Marandi. He then appealed that decision to the High Court, where Mr Justice Mostyn stated his “only surprise” was that Mr Marandi was granted anonymity in the first place.
“For reasons of procedural unfairness as well as a distinct lack of merit, it should never have been granted,” Mr Justice Mostyn said.
On Monday, the Court of Appeal declined to hear a further appeal, which meant the anonymity order was finally lifted.
A spokesperson for Mr Marandi said: “Mr Marandi is deeply disappointed at the court’s decision to lift reporting restrictions, knowing the reputational damage that is likely to follow.”
The businessman formed part of a secret “advisory board” operating at the heart of government, exposed last year by the Sunday Times. The group was made up of ultra-wealthy Conservative Party donors given access to ministers including then prime minister Boris Johnson.
As well as making significant donations to the Conservatives, Mr Marandi has a charitable organisation that supports the Royal Foundation – set up by the Prince and Princess of Wales. The Marandi Foundation, which he established with his wife Narmina in 2017, aims to provide training and educational opportunities to disadvantaged young people.
It also supports St Paul’s School in London and Centrepoint.
The Liberal Democrats called on the government to launch an independent inquiry into the donations from Mr Marandi to the Conservative Party.
Deputy leader Daisy Cooper said: “It’s clear that the Conservative Party have simply given up on standards, and they have no shame about where their money comes from.
“If Rishi Sunak was serious about restoring integrity, he would order an independent inquiry to get to the bottom of these donations.”
Anti-corruption research group Transparency International UK said its report “should be a concern”. Policy director Duncan Hames said: “We’ve learned today that someone who’s given hundreds of thousands to a British political party has, in the words of the judge, been a person of importance in proceedings before the court about a major money-laundering enterprise.”
Dr Susan Hawley, the executive director of Spotlight on Corruption, said Mr Marandi’s case highlighted an “abject failure of political parties to do proper checks on who is donating money to them”. “This case should be a serious wake-up call to all political parties to develop proper ‘know your donor’ policies,” Dr Hawley added.
Mr Marandi’s spokesperson added: “At no point has Mr Marandi been investigated or questioned by the authorities. And no case has ever been brought against him or his businesses in relation to these or any other matters, anywhere in the world.
“He was not the subject of this civil claim, nor a party nor a witness, meaning no evidence could be submitted on his behalf or representations made. It is therefore unjust to be named, without having had the fundamental right to rebut these false findings.”
