Liz Truss's personal phone was hacked by spies working for the Russian government, reports in Britain claim. PA
Liz Truss's personal phone was hacked by spies working for the Russian government, reports in Britain claim. PA
Liz Truss's personal phone was hacked by spies working for the Russian government, reports in Britain claim. PA
Liz Truss's personal phone was hacked by spies working for the Russian government, reports in Britain claim. PA

UK government urged to investigate reports of Liz Truss phone hacking


Neil Murphy
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The UK government has been urged to launch an investigation following reports that Liz Truss’s phone was hacked by spies working for the Russian government.

The alleged breach was discovered when then-foreign secretary Ms Truss was running for the Tory leadership in the summer, but details were suppressed by then-prime minister Boris Johnson and Cabinet Secretary Simon Case, the The Mail on Sunday reported.

Cabinet Minister Michael Gove said on Sunday that the government takes security issues “incredibly seriously”.

“I think all of us have to be sensitive, particularly those of us in government, to the fact that the more that we talk in detail about these things, the more that we risk giving information to people who wish this country and its citizens harm,” Mr Gove said.

“We do take security issues incredibly seriously. That's why, again, I have to be cautious in responding to the point that you understandably made about Liz's phone.”

Spies gained access to sensitive information, including discussions about the Ukraine war with foreign officials, The Mail on Sunday reported citing unnamed sources.

It also claimed details of private conversations between Ms Truss and former chancellor Kwasi Kwarteng criticising Mr Johnson fell into the hackers’ hands, leaving them at risk of blackmail.

Opposition parties are demanding an investigation into the alleged attack, which will raise questions about the UK’s cyber security, as well as the judgment of Mr Johnson and Mr Case.

Labour’s shadow home secretary Yvette Cooper said: “Clearly these are very serious allegations.

“It raises issues around cyber security, it's why cyber security has to be taken so seriously by everyone across government, the role of hostile states, but also the allegations about whether a Cabinet minister has been using a personal phone for serious government business, and serious questions about why this information or this story has been leaked or briefed right now.”

She added: “It is essential that all of these security issues are investigated and addressed at the very highest level and we need to know that the government recognises the gravity of this and the importance of fully protecting our national security.”

Liberal Democrat foreign affairs spokeswoman Layla Moran said: “We need an urgent independent investigation to uncover the truth. Was Liz Truss’s phone hacked by Russia, was there a news blackout and if so why?

“If it turns out this information was withheld from the public to protect Liz Truss’s leadership bid, that would be unforgivable.”

A UK government representative said: “We do not comment on individuals’ security arrangements.

“The government has robust systems in place to protect against cyber threats. That includes regular security briefings for ministers, and advice on protecting their personal data and mitigating cyber threats.”

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Updated: October 30, 2022, 10:35 AM