What is the row around UK PM Rishi Sunak, wife Akshata Murthy, and childcare firm Koru Kids

Meanwhile, Downing Street, in a statement, has said it is “happy to assist” the investigation to “clarify how this has been transparently declared as a ministerial interest”.

What is the new childcare policy?

In the spring Budget, presented in March this year, Chancellor of the Exchequer Jeremy Hunt introduced a childcare policy that offers financial incentives for new childminders, with more reserved for those who sign up through agencies like Koru Kids, Evening Standard reported.

In his speech, Hunt said the government would be “piloting incentive payments of £600 for childminders who sign up to the profession, rising to £1,200 for those who join through an agency”. The latest scheme could help not only raise the number of childminders entering the profession but also generate more business for Koru Kids and other similar companies.

What is Koru Kids?

As per the BBC, Koru Kids is one of six childminder agencies on the UK government’s website. It essentially provides childminders, who are recruited and trained by it, to families in need of childcare services.

Based in London, the agency was incorporated in 2016 by Rachel Carrell, who is currently its CEO. As mentioned before, one of the shareholders of Koru Kids is Sunak’s wife, Akshata Murthy — daughter of Infosys founder NR Narayana Murthy and owner of about 0.9 per cent stake in the multinational IT company, along with shares in several other British businesses.

Why is Rishi Sunak being investigated?

According to paragraph six of the code of conduct for MPs, including the prime minister, they are required to “be open and frank in declaring any relevant interest in any proceeding of the House or its committees, and in any communications with ministers, members, public officials or public office holders.”

As Sunak failed to mention his wife’s investment in Koru Kids during his appearance before the liaison committee, he is being accused of breaching MPs’ rules over the declaration.

However, the prime minister argues he didn’t need to disclose the particular information as he had already declared Murthy’s interest to the Cabinet Office and that an updated statement of ministers’ interests would be published soon.

According to the BBC, in a letter that Sunak wrote just days after his appearance, he said the list of ministerial interests “ensures steps are taken to avoid or mitigate any potential conflict of interest”.

Notably, the list has not been updated for nearly a year and was last compiled by Lord Geidt, who resigned as Boris Johnson’s ethics adviser, the news outlet said.

What happens now?

Sunak will now be investigated by Daniel Greenberg, who is the parliament’s commissioner for standards. However, even if he is found guilty of breaching the code of conduct for MPs, it’s unlikely that he would face any stringent punishment.

As per a report by The Guardian, “any sanction is likely to be minor and parliamentary sources suggested that should he admit a breach, he would probably only be ordered to make a correction.”

But Sunak’s conviction could result in a political fallout, given he came to office on the promise that he would put “integrity and accountability” at the heart of his administration. Moreover, this isn’t the first time that the prime minister is facing the heat due to Murthy’s business investments. When Sunak was the finance minister, the couple was widely criticised over Murthy’s “non-domiciled” tax status, which meant she didn’t have to pay tax in Britain on her earnings abroad.