City whistleblower wins big in employment tribunal

Bharat Bhagani informed the financial watchdog of his concerns about a possible Chinese spy in 2022.

• Pramod Thomas
• 29 August, 2024

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By: Pramod Thomas

A FORMER City compliance officer has been awarded over £500,000 after an employment tribunal found he was unfairly dismissed for whistleblowing.

Bharat Bhagani, who worked for Goldenway Global Investments, a British subsidiary of a Hong Kong-based group, raised concerns about potential espionage and financial misconduct.

During the hearing at a central London tribunal, Bhagani claimed he was ordered to secure a UK visa for an individual later identified as a Chinese espionage agent. After alerting authorities, he faced questioning before the alleged spy was deported.

Matters escalated when Bhagani resisted pressure from Hong Kong executives to facilitate the appointment of two directors to the London office, believing such moves would breach British financial regulations.

Taking his concerns to the Financial Conduct Authority (FCA), Bhagani also flagged potential money laundering activities within the company.

The tribunal, led by Judge Mark Emery, found Bhagani’s actions to be justified and in the public interest. Judge Emery noted that Bhagani’s evidence regarding the alleged spy went largely unchallenged, and his belief in the company’s attempts to recruit a Chinese agent was deemed reasonable.

Goldenway Global Investments, which has since lost its authorisation to operate in the UK, swiftly terminated Bhagani’s employment following his disclosures to the FCA. The tribunal ruled this dismissal unfair, concluding that the Hong Kong leadership viewed Bhagani as a threat to their operations.

The judge’s ruling highlighted the company’s fear that Bhagani’s continued presence and disclosures would have caused significant regulatory issues. The tribunal also accepted Bhagani’s belief that his dismissal was linked to expediting the transfer of potentially illicit funds.

As a result of the ruling, Bhagani has been awarded approximately £564,000 in compensation for unfair dismissal.

In January, the Chinese Embassy in the UK issued a statement strongly denying the espionage allegations, calling them “completely based on hearsay evidence” and “created out of nothing”.

“The so-called ‘Chinese espionage agent’ related to an employment dispute case, is completely based on hearsay evidence and also is created out of nothing. We firmly oppose any malicious slander against China,” the statement said.