Westminster group was funded by Israeli government, inquiry confirms

A weapons firm owned by the Israeli government paid a group of MPs as part of a “PR and marketing campaign”, an inquiry has found.

It follows an investigation by Declassified earlier this year into the All-Party Parliamentary Group (APPG) on Defence Technology.

We revealed how the group took £1,499 from RUK Advanced Systems Ltd, which is part of the Israeli state-owned defence giant, Rafael.

Records show the company was controlled by the Israeli government’s Ministry of Finance, which is led by far-right politician Bezalel Smotrich who is sanctioned by Britain for inciting “extremist violence” against Palestinians.

Declassified’s investigation sparked a lengthy probe by the Standards Committee into Neil Shastri-Hurst, the Conservative MP for Solihull West and Shirley, in his capacity as the APPG’s chairman.

A 61-page report published last week concluded that the “failure to conduct adequate due diligence” had “resulted in a foreign government temporarily part-funding the All-Party Parliamentary Group for Defence Technology”.

It added: “This is precisely the scenario that the due diligence requirements are provided to prevent.”

In evidence to the inquiry, the director of RUK claimed the company operates “independently from Israeli Government control”.

RUK’s director added: “Neither the Israeli Government nor the parent company Rafael directed RUK to join the APPG for Defence Technology. I had taken this decision as a part of a PR and marketing campaign to raise the profile of the company.”

However, Companies House records show that the “Ministry Of Finance, State Of Israel” was the only “person with significant control” listed at the time.

Meanwhile, the APPG’s website promised corporate funders they would have “opportunities to network with MPs” and could “gain visibility”.

The committee’s ruling comes as the government announced an independent review to “tackle the scourge of foreign financial interference in UK politics”.

However, reports say the review will only focus on “Russia and other hostile states”, so it is unlikely to look at interference from Israel, which is still considered a key UK ally.

‘Mortified’

When Declassified contacted Shastri-Hurst in June, with the findings of our investigation, he referred himself to the parliamentary standards commissioner.

The money was also handed back to RUK Advanced Systems Ltd and the APPG was eventually shut down.

“I am mortified that my action or inaction has resulted in this process,” Shastri-Hurst told the inquiry.

“The suggestion that this was a deliberate breach is mortifying to me. My integrity is the thing that I hold to the highest standard, and to find that questioned is personally devastating.”

Meanwhile, RUK Advanced Systems is now in the process of shutting down. A source claimed the closure is not linked to Declassified’s investigations, but no official reason has yet been given.

When Declassified first contacted the company, it did not respond – but its website was taken down less than 12 hours later.

Foreign influence

The ruling comes after years of warnings from transparency campaigners that APPGs can operate as a “back door” for lobbyists.

An investigation in 2022 found that more than half of donations given to APPGs had come from the private sector, while many groups had lobbied for causes that benefited their donors.

New rules were introduced the following year, to restrict the influence foreign governments could have on the groups.

The report published last week appears to be the first of its kind, in a stark admission of foreign influence over Westminster.

Remarkably, Shastri-Hurst sits on the very committee that investigated him – the Committee on Standards – although he was not part of the inquiry.

Details of the inquiry’s findings were reported by the BBC last week, but failed to mention Declassified’s investigation.