Secrets of the Tory Billionaire Panorama

early as next year. US forces will switch to providing training.

It is time for Panorama. A Caribbean building boom that

seems like it would last for ever. They seemed to be resort's opening

everywhere, champagne flowing like water. When the bubble burst, these

people lost a fortune. Is it a big hole in your pocket? What is a

bankrupt construction company -- what does a bankrupt construction

company have to do with a laud. Nothing at all he would have the

belief. We have concluded that Lord Ashcroft is pulling the strings.

Tonight, we reveal how one of the most influential figures in the

Conservative Party misled the stock market by keeping parliament in the

dark. If he was secretly control and the company, it would be very

This is a story about a secretive billionaire who has given more than

�10 million to the Conservative Party. He is possibly the biggest

political donor in British history. His cash held put David Cameron in

power. It is unclear where most of his money comes from, because his

business affairs are hidden behind a maze of offshore companies.

Nobody has found a way through until now. It has taken more than

two back years of research, but we have under covert a -- have

uncovered a secret. A secret he has gone to great lengths to hide. Who

is Lord Ashcroft and why do his business dealings matter? He has

been a peer of the round since the year 2000. Hide Michael, Lord

Ashcroft. He was nominated by the Foreign Secretary. He has been

treasurer and deputy chairman of the Conservative Party. At the last

election, his tax status became a major issue when he was forced to

admit he had not been paying for UK tax on his worldwide earnings. It

did not stop David Cameron appointing him to review military

bases in Cyprus. He has been worth the most important figures of the

Conservative Party for the last decade. He has gone into publishing,

he is into the internet, he is a hugely influential figure. As well

as finding the Tories, it also gives money to good causes. When I

started Crimestoppers 23 years ago, I could never have imagined such

the incredible success but the charity would enjoy. He has donated

around �10 million to a year it -- to a university. Here he is

presenting an honour or -- an honorary degree to Kadi Minogue.

Two weeks ago he offered a �5 million towards a new royal yacht.

He started with a simple cleaning company, but his business empire

now stretches around the world. Most of his money has been made in

offshore tax havens. A strange world where nothing is quite as it

seems. Even the experts cannot work out what is going on. It is very

difficult to follow and unravel and understand. There are numerous

companies. The offshore companies do not publish accounts, they did

not filed information with any regulators. It becomes impossible

to unravel and understand. We have been investigating one particular

business. It is a highly controversial business. The

evidence we have is that Lord Ashcroft has deliberately misled

the public about his involvement. The story starts in the place he

called home. We are off to the Caribbean. The Turks and Caicos

Islands is a British overseas territory. A playground for the

wealthy and a tax haven. For years, Johnston International was the

biggest construction company here. It built everything from roads and

homes to hospitals and luxury of results. Lord Ashcroft knows this

place well. He set up were the biggest banks here. People on the

island. He controlled the construction company as well. Is

not difficult to see why people thought there was a connection

between Lord Ashcroft and Johnston International. This is his bank,

the company was based upstairs. Almost everybody we spoke to

thought that Lord Ashcroft was the man behind Johnstone. He sold the

company he is a go. In 1999, Lord Ashcroft announced the sale of

Johnstone at the London Stock Exchange. The City thought it was

no longer anything to do with him. There are strict rules about this

kind of announcement. The essence of six at the track successful

markets is that participants are honest. There are ex -- disclosure

rules in all markets. There are reports of roles this -- related to

disclosure. Participants expect an honest disclosure. As far as East

upmarket was concerned, Lord Ashcroft was no longer involved.

Parliament bought the same. He has never said a word to suggest

otherwise. We have to register called relative interests which may

influence Arab parliamentary actions. It is an important

principle, not just whether they have those influences, or were they

a regional person could think they would. In the Caribbean we found

out more about Lord Ashcroft's relationship with Johnston

International. We spoke with former employees who were told one after

he sold the company that he was still in charge. They were afraid

to speak on camera. 0 Ashcroft has a reputation for sending people.

was told Lord Ashcroft had all too much control. People would report

to him in meetings and said they had to run things past him. They

would refer to him as Michael Ashcroft and also by his initials.

No-one was under any illusions as to who that was. It was very clear

that that was Lord Ashcroft. most of the last decade, the

builders had plenty of work. This video shows his yacht moored at

side for a launch party of a resort. Deep resort was opened by the

premier of the islands. He wanted his country to become the Monte

Carlo of the Caribbean. We have the world's best beaches, Areva waters

are magical and turquoise. We cannot wait to see all of you here.

It was party time. Developers have flocked to cash in. There was

resorts opening everywhere. Everyone has tried to outdo

everyone else and having a big party. The champagne was flowing

like water, it was a great place to be living. He wondered how it was

all going to be sustainable. What happened next was a political

scandal. In two dozen and nine, this man resigned following

allegations that he and fellow ministers were running a corrupt

regime. They were accused of corruption on a massive scale.

of the numbers that were thrown about where incomprehensible

amounts of money. The amount of money at the premiere was spending

on herself. A public inquiry investigated the allegations. It

concluded that there was a higher probability pop systemic corruption.

The deputy Leader of the Opposition party has faced unrelated

corruption allegations himself. He said the inquiry was an eye-opener.

The level of Ms -- ministerial involvement in ravaged land

transactions and the level of money that was going through the bank

accounts of some of the ministers, most people were shocked and most

people were extremely surprised. The British government suspended

the local parliament. The islands are now being run by the Foreign

Office, headed up by a friend of Lord Ashcroft. British detectives

are investigating corruption allegations. They have also frozen

or all of the assets. They wanted know how he could afford a luxury

mansion valued at $16 million. It was built in 2006 by Johnston

International. That is the company where 14 former employees told us

they thought Lord Ashcroft was still the boss. It is known locally

as the White House. It has seven bedrooms, nine bathrooms, its own

beach and a private dock. Even at the guest cottages have their own

reflection polls. They had it all. A round-the-clock security, a major

service and a butler service. The government itself was paying for it.

It is a lot to spend. Two had and $50,000 a year, water for your Paul.

-- $250,000. It represents a failed time in our political life. It was

built by Johnston International. But that does not all. Most of the

finance came from one of the company's its sister companies. It

lends $4.2 million. The interest on the load was 12%. He was getting

more than $500,000 Aryee in interest alone. There is no

evidence that he ever paid anything back. It looks like he does not

paying for the White House. Some who was in day-to-day charge of the

Johnston Group when it funded the home? Achieve executive was this

man. Through his solicitors, he told us that the building and

financing of the mention was a legitimate transaction. He said the

corruption investigation had found no findings towards it. He also

said Bob Ashcroft has had no interest in the -- Lord Ashcroft

has had no interest in the company for years. There was no doubt in my

mind or any of the senior employees that he had seen your control. It

was a security blanket. He has deep pockets. If whatever that slack,

everybody assumed that the next pay cheque would be written. Board

Ashcroft's lawyers made it very clear that he had no involvement in

the building of the mansion. They also said: Our client has no

beneficial or legal interest in the Johnston Group since 1999. It

includes any company ultimately controlled by the claimed. That

sounded like he was denying any involvement since 1999. And yet

many employees were adamant that Lord Ashcroft was still the boss.

Was Lord Ashcroft still in charge of Johnston as the employees claim?

We have been trying to find out. But that is not easy. Johnston is

owned by a series of companies based in different tax havens.

This is complicated, but there with me. Johnston International is based

in some islands. It is owned by a company based in the British Virgin

Islands. It is owned by another company, and then another company.

Why such a complicated set-up? is to keep prying eyes out. Each of

sure there is a barrier to information. It will slow

investigations down. Quite often, you cannot confirm, but you have

the stronger suspicions about what has happened. But you cannot get

the confirmation. Johnston's chief executive said there was nothing

suspicious about the structure, and that it compliant -- complied with

regulations. But it made it difficult for us to get any further.

We had reached a dead end. We put out a programme about Lord Ashcroft

in 2010. But because of his denials about Johnston, we did not mention

the company. Other journalists who were also asking questions, that

they decided to publish. The Independent newspaper received a

similar denials about Lord Ashcroft but it ran the story anyway,

linking him with Johnston and the mansion. Now he is suing the paper

for libel. Michael Ashcroft is very litigious. It is very chilling if

you probe into his business affairs. It is difficult to get to the

bottom of it. If you get something wrong, he has got very deep pockets,

and very sharp lawyer's. Lord Ashcott's threats of legal action

close down the story linking him to the mansion. It might have stayed

that way, if the company at the centre of it all had not close down

as well. Johnston's workers were locked out without warning. It was

unbelievable. We went to collect our wages. We picked the wages up

and he called me to say the office is closed. Johnston's end was a

messy one. It would -- it went down with debts of $30 million.

Creditors have come to see if they can get any money back. We are

chasing money. How much? Over 100,000, $120,000. Is it a big hole

in your pocket? Ten News see the sun shining? It is a big hole.

cash they were hoping for has already been cleaned. By Lord

Ashcroft's Bank. There are a lot of frustrated people. People who are

owed a great deal of money. Biggish Caribbean bank, Lord Ashcroft's

Bank, has taken two million dollars who should have gone to the workers.

The bank says the cash was security for loans, and that the security is

a priority. The bank's legal advice is that the transfer of secured

assets to BCB was entirely proper in every respect. But former

employees had been left thousands of dollars out of pocket. It is a

lot of money. We all need money. We have families, schools started a

few months ago, and there is not much going on. I was looking

forward to that money. It could have helped me out a lot.

Back at Lord Ashcroft's Bank, there is another unhappy customer. Trish

Johnson is an accountant. He has come to the island to wind up

Johnston's parent company. It is called Oxford ventures and it has

also gone bust. For the past year, he has been trying to get

information about Oxford venture's bank account. But the bank will not

help. I had sent numerous e-mails, letters by a courier, to the spade

and also its sister bank. I have not had the courtesy of a response.

It is outrageous they would not give me bank statements or loan

agreements or guarantees. I am running Oxford. They are my banker.

It is incredible. That a bank will not give his own client these

documents. The bank's solicitors told us that laws on banking

confidentiality, the bank could not respond to an overseas liquidator,

to the court recognised the authority of that liquidator. Chris

Johnson was recognised by the courts two months ago. But the bank

has now started a legal challenge to his authority. The crucial

question, is just who was the driving force behind the company at

the centre of our investigation? Johnston and its parent Oxford

ventures. Over the past year, we have obtained evidence that has

convinced us that Lord Ashcroft was really in charge. We discovered

that he had business meetings with the chief exec a bit -- chief

executive. Sometimes he used a false name. He stayed here at this

Ocean Club. But he did not use his real name for the reservation. He

bought it as Mr Webster. Much about Lord Ashcroft, also known as Mr

Webster, was shrouded in secrecy. It made it almost impossible to

discover who controlled the Johnston and Oxford ventures. But

last summer, we had a major breakthrough. We obtained evidence

that finally cut through the corporate maze. Confidential

internal documents that were never supposed to be seen. They showed

who was really Paul Reid and the strings. -- pulling the strings. We

have a bundle of faxes all written by Allan Forrest. They are

addressed to MAA, also known as Michael Ashcroft. Former employees

have told us the decisions were run past MAA, and he was the proof. The

faxes were all written after Lord Ashcroft announced that he had left

Johnston. They cover a seven-year period, and they are Britain on

company business paper. He asked for Lord Ashcroft's instructions on

major business projects. They were sent to Lord Ashcott's

private numbers. He even wrote his instructions on some of the faxes

and sent them back. We actually see copies of the faxes

with Lord Ashcroft's handwriting on them. There are quite a number of

faxes where Allan Forrest has gone to Lord Ashcroft and said, Look, we

need some answers on this. It was probably discussed over the phone.

A few have them have got handwritten comments by Lord

Ashcroft. This is a bust selling his employee what to do. -- a boss

telling his employee. He also refers to Lord Ashcroft as being

his boss. Through his lawyers, Alan Forest told us that he has never

provided Lord Ashcroft with any detailed report, nor asked him for

instructions on major discussions. But this simply is not true. Our

faxes show the chief executive is lying about Lord Ashcroft's

involvement. In this one, Alan Forrest faxed Lord Ashcroft for a

pay rise. Dear Michael, a short note to say thank you for the pay

increase. A strange thing to say to someone who is not your boss. Alan

Forrest denies that Lord Ashcroft had personally approved his pay and

benefits. But we have got another fax, where he fenced Lord Ashcroft

for a bonus worth $300,000. Then we obtained the most darning one of

all. -- damning one. He wrote to Lord Ashcroft about Johnston's

parent company, Oxford ventures. He Who do you think controls Johnston

International and Oxford ventures? From what we sing, we have

concluded that Lord Ashcroft is the driving force behind Oxford and all

its come Guineas. -- companies. I have no doubt about it. He is

behind it. We had evidence that will come to light in due course.

Lord Ashgrove's lawyers, in response to our most recent

questions, said he stood by any it -- every statement he has made to

Panorama. Our client has never been all -- directly or indirectly, in

part or in whole, and owner of Oxford ventures. But we were not

asking him about ownership, we had asked whether he controlled Oxford

ventures and Johnston International. And that is a question he has

repeatedly avoided answering. That the investigation into corruption

on the island is now gathering pace. Detectors have started looking at

the role Johnston played in the construction of the former

Premier's mansion. There is no suggestion that he is corrupt. But

we think there are now grounds to investigate what he knows about the

building and financing of the home. Back in the new gay -- the UK, our

evidence is also it important. That the story is about to be raised in

the British courts. We do not know why Lord Ashcroft has been

deliberately concealing the truth. But we do know that the information

that we have uncovered could prove to be very useful to the

Independent, because it will provide new evidence in the paper's

libel battle with Lord Ashcroft. It is not just the newspaper that will

be interested in what we have discovered. Lord Ashcroft should

have told the stock market that he was controlling Oxford and Johnston.

Should he also have told parliament? The House of Lords did

not have a specific rule about secretly controlling a company, but

the spirit says clear. We have a duty to be open and honest about

any private interests that might reasonably sought by a person, to

affect our actions. If Lord Ashcroft was equally controlling

the company, which he did not declare, that would be very serious

indeed. It is not clear white or Ashcroft is being so secretive. --

y Lord Ashcroft. It is not in keeping up with the government's

demand for greater accountability and transparency. You cannot

provide moral and intellectual leadership if you do not embrace

the highest standards of public accountability. If you are a

lawmaker or a public figure, you should be totally transparent. All

your business affairs are out in the Open. The question now is