Blair's financial documents: Edited correspondence between the Guardian and Tony Blair's spokesman
GUARDIANCan you explain what funds are paid into the Windrush Ventures No3 LP partnership, by whom and why? Both the Gates Foundation and the Gatsby Foundation list payments in to this unusual partnership, and according to the FT, these are for charitable Africa projects. But the sums listed are much less than the £6.4m fee for "management services" which the partnership pays out to other Blair entities, plus a listed profit.
Can you tell us who is beneficial owner of the limited partner in Windrush Ventures No 3?
Is there any reason not to tell us the terms of the partnership agreement for Windrush Ventures No 3 LP?
What is the purpose of the Windrush structure? It is an unusual, elaborate and artificial structure which involves the creation of 6 different entitites. Two limited companies — Windrush Ventures and Windrush Ventures No 1 — are created to form a limited liability partnership, Windrush Ventures No 2 LLP, although all three entities are personally owned by Mr [Tony] Blair. This LLP is set up to serve as the general partner to an unusual limited partnership under the 1907 Act. This partnership in turn has as its limited partner, an off the shelf dormant limited company BDBCO No 819, owned by a second similar company, whose share is held in turn by Bircham & Co Nominees. This partnership then receives both assets and charitable donations.
Why is it called Windrush?
What is the purpose of setting up an apparently identical complex structure this year, called Firerush?
BLAIR SPOKESMAN
Windrush is simply an administrative vehicle established in order to allow Mr Blair's office sensibly to administer his different projects, in accordance with relevant regulations and company law in the UK. As we have said before he is a UK resident taxpayer.
Perhaps, it would help to explain the background to the Africa projects. The work of AGI began as projects in two African countries. From the start, these projects have been entirely not for profit and Tony Blair gives his time on a pro bono basis. The projects were administered in accordance with the terms set out by the funders which included a separate bank account, regular stakeholder reporting and financial management. They have been entirely satisfied with these arrangements.
Due to the success of these two projects the Africa Governance work has expanded significantly over the last 18 months and as such we took a decision to establish separate organisations in the US and UK in order to administer these and future projects — the Tony Blair Governance Initiative and the Tony Blair Governance Initiative — US. Charitable registration in the USA and the UK has now been received.
I hope that helps.
GUARDIAN
I note that Mr Blair has refused to answer any of our specific questions.
… Legal specialists now tell us the following about the artificial structures around Windrush Ventures No 3 LP, described by Mr Blair on company records as a "consultancy": 1. The structures do not appear to involve a normal venture capital limited partnership, despite the appearance of the word "Ventures" in the title. The purported limited partner in Windrush, for example, appears not to be an outside investor, but an entity set up as part of the structure by Mr Blair's own lawyers at Bircham Dyson Bell.
2. They do appear to be capable of being used as what is known as a family limited partnership. This is a structure which makes it possible to gift interests in the LP to younger family members. without future liability to inheritance tax under certain conditions.
3. They do not appear to have any other definable sensible commercial or administrative purpose.
BLAIR SPOKESMAN
I have tried to engage with you. You refuse to send specific allegations. For example, you say that this structure could be used as a "family limited partnership". Are you saying that it is? Otherwise, I'm not sure what you are looking for a response to? As I said in my previous email, if that is your specific allegation, then I can tell you that it isn't.
I can only suggest that your questions are based on a fundamental misunderstanding of what Windrush is: it was simply established in order to allow Mr Blair's office sensibly to administer his different projects, in accordance with relevant regulations and company law in the UK.
As we have said before he is a UK resident taxpayer.
I am happy to continue to engage with you on this, but I need a bit back from you.
GUARDIAN
We have been told that the Windrush/Firerush structure can be used as a family limited partnership.
This is something that would occur, of course, at a future date.
Your response is to say: "It isn't."
ie it is not operating as an FLP at present.
… You offer no other alternative explanation.
BLAIR SPOKESMAN
I have repeatedly said why we set it up and that was in order to allow Mr Blair's office sensibly to administer his different projects, in accordance with relevant regulations and company law in the UK. He has an operation that has over 80 people working for it around the world. This was done on the basis of advice.
What public money are you referring to?
Again, genuinely, I am trying to be helpful: please run through what it is you are unclear on and I will be happy to help.
GUARDIAN
No legal specialist to whom we have talked can find any alternative rationale for the Windrush structures, and nor could the Financial Times, which said the same thing about them the other day.
You don't need to set up artificial partnerships with yourself in order to do business round the world.
Mr Blair has set up a bizarre structure to do business.
… Specialists conclude he will be free to use this structure as a family limited partnership.
BLAIR SPOKESMAN
I have already said he isn't using the structure in that way?
… Indeed, the structure isn't even set up in the way you say.
GUARDIAN
Do you say he will never use the structures in that way?
BLAIR SPOKESMAN
It is not set up in the way you describe and that is not going to change.
GUARDIAN
According to the accounts, Windrush Ltd and Windrush No 1 Ltd are partners in Windrush No 2 LLP.
But — again according to the accounts — all three entities are personally owned by Mr Blair.
Hence he is in an artificial partnership with himself.
As for the partners in Windrush No 3 LP — one of them is Mr Blair himself.
Are you now saying that the other partner ISN'T Mr Blair?
Please give me a straight answer on that point.