A backbench Conservative MP is demanding a government probe into the Barclay family’s use of Middle East-based financing to regain control of The Daily Telegraph.
Sky News has learnt that Danny Kruger, the MP for Devizes, urged the culture secretary Lucy Frazer to issue a Public Interest Intervention Notice (PIIN) into the funding behind the Barclays’ efforts to repay more than £1bn owed to Lloyds Banking Group.
Describing the Telegraph titles as “a treasured national asset”, he warned: “If material influence over, or control of, a quality national newspaper was passed to an unknown foreign ruler at any time it would raise concerns, but at a heightened time of geopolitical turmoil I believe it is more important than ever that this deal…is given proper scrutiny.”
A PIIN would trigger an inquiry by Ofcom, the media regulator, and the Competition and Markets Authority, and could undermine the Barclays’ claim that their bid offers a swift resolution to the uncertainty surrounding the future of the Telegraph and Spectator.
In the letter, Mr Kruger wrote: “It has long been British Government policy that foreign investment into influential British media should be scrutinised through the use of Public Interest Intervention Notices, and I would urge you to take similar action in this case.”
He cited the Barclays’ decision not to disclose the identity of their backers during a court hearing in the British Virgin Islands last week as “[flying] in the face of the transparency of ownership that is normally demanded in a democratic society with a free press”.
Sky News revealed on Friday that First Abu Dhabi Bank, the UAE’s biggest lender, had agreed to provide financing to the family, although Sheikh Mansour bin Zayed Al Nahyan – the ultimate owner of a controlling stake in Manchester City Football Club – is said to be among those in talks to commit the underlying funds.
Mr Kruger questioned why “the amount of the loan from the anonymous funder is far beyond what…
