Difference between revisions of "Isaac Kaye"

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==Background==
 
==Background==
Isaac Kaye (born South Africa) was Deputy Chief Executive of the [[IVAX Corporation]] and Chairman of [[Norton Healthcare]]. in 2002, he is described by <i>the Guardian</i> as being a 'seventysomething multi-millionaire' who 'moved to Britain in 1985, took Irish citizenship and salted away a small fortune in a Channel Islands trust fund from a US business deal'<ref>Maguire K (2002) [http://www.guardian.co.uk/uk/2002/apr/13/politics.partyfunding Profile:Isaac Kaye] <i>The Guardian</i> 13th April 2002. Accessed 4th April 2008</ref>. According to The <i>Express</i>, Kaye moved to Britain shortly after his partner [[Bernard Miller]] who arrived in 1982<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000.</ref>. In 2008, Kaye is reported to be 78 years of age<ref>Grimston, J., Woolf, M. & Gadher, D. (2008) 'THE DONORS: FROM DIAMOND BROKER TO DEMOLITION MAN'. The <i>Sunday Times</i> 13th January 2008</ref>
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Isaac Kaye was born in South Africa and came to Britain in 1985.<ref name="profile">Maguire K (2002) [http://www.guardian.co.uk/uk/2002/apr/13/politics.partyfunding Profile:Isaac Kaye] <i>The Guardian</i> 13th April 2002. Accessed 4th April 2008</ref> He is an Irish citizen<ref name="profile"/> with non-domicile status and has been a registered voter since 1991.<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000.</ref> He lives in a luxury apartment in [[Grosvenor Square]], Mayfair, London<ref>Evans, R & Hencke, D. (2002) [http://www.guardian.co.uk/money/2002/may/25/tax.politics 'Tax loopholes on homes benefit the rich and cost UK millions']. The <i>Guardian</i> 25th May 2002. Accessed 22nd May 2008</ref> <ref>Maguire K (2002) [http://www.guardian.co.uk/uk/2002/apr/13/politics.partyfunding Profile:Isaac Kaye] <i>The Guardian</i> 13th April 2002. Accessed 4th April 2008</ref> (since 1990<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000.</ref>). In 2002, he is described by <i>the Guardian</i> as being a 'seventysomething multi-millionaire' who 'moved to Britain in 1985, took Irish citizenship and salted away a small fortune in a Channel Islands trust fund from a US business deal'<ref>Maguire K (2002) [http://www.guardian.co.uk/uk/2002/apr/13/politics.partyfunding Profile:Isaac Kaye] <i>The Guardian</i> 13th April 2002. Accessed 4th April 2008</ref>. According to The <i>Express</i>, Kaye moved to Britain shortly after his partner [[Bernard Miller]] who arrived in 1982<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000.</ref>. In 2008, Kaye was reported to be 78 years of age.<ref>Grimston, J., Woolf, M. & Gadher, D. (2008) 'THE DONORS: FROM DIAMOND BROKER TO DEMOLITION MAN'. The <i>Sunday Times</i> 13th January 2008</ref>
  
Kaye's first company in Britain was called [[Harris Pharmaceuticals]] (which Kaye became involved with in 1982), at the time Harris supplied their companies in South Africa<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000.</ref>. Harris was half-owned by companies in South Africa and the tax havens of Liechtenstein and the Channel Islands until it was sold to IVAX in 1990<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000.</ref>. Harris was then renamed [[Norton Healthcare]], which was later changed to [[Ivax Pharmaceuticals UK]]. Kaye is reported to have 'made £23m from the deal and has a £12m stake in the parent company'<ref>Maguire K (2002) [http://www.guardian.co.uk/uk/2002/apr/13/politics.partyfunding Profile:Isaac Kaye] <i>The Guardian</i> 13th April 2002. Accessed 4th April 2008</ref>. In 1985, Kaye was appointed as Chairman of IVAX Pharmaceuticals UK, a position he held until retiring in 2003. In 2003, he also retired from his position as deputy chief executive officer with the IVAX Corporation and announced his intention not to stand for re-election to the IVAX board.<ref><i>Chemist & Druggist</i> 'It's goodbye from him'. 28th June 2003</ref>
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Kaye has a long history of involvement in drug companies. In South Africa in the 1970s his companies were [[CE Electro-Medical]] and [[Continental Ethicals]]<ref>Gillard, M. (2000) 'APARTHEID SUPPORTER WHO IS A GBP 100,000 BACKER OF LABOUR'. The <i>Express</i> 28th September 2000</ref>. His first company in Britain was [[Harris Pharmaceuticals]]<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000.</ref>, which was later sold to the [[IVAX Corporation]]. Kaye's involvement continued with IVAX, where he held several senior positions, until his retirement in 2003<ref><i>Chemist & Druggist</i> 'It's goodbye from him'. 28th June 2003</ref>. He was also the second largest shareholder of IVAX (as reported in 1998), with a stake worth $136 million<ref>McGee, H. (2002) 'Alleged fraud firm linked to millionaire with Irish passport'. <i>Sunday Tribune</i> (Ireland). 14th April 2002</ref>.
  
The Ivax Corporation is a huge Florida-based health company. Norton Healthcare, the largest generic drugs company in Britain, is a subsidiary of IVAX. Kaye earned $550,301 at IVAX in 1998 (plus share options worth up to $1.5 million) and $521,520 in 1997<ref>Ref needed</ref>. In 2001, Kaye cashed 93,750 of his shares and 'reaped more than a million dollars-nearly equaling his salary and bonus'<ref>Fakler, J. T. (2002) 'Companies keep their options open'. <i>South Florida Business Journal</i>. 9th August 2002</ref>.  
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Kaye's career has been riddled with scandal. From as far back as the 1980's 'gifts for influence' has been a recurrent theme<ref>Maguire K (2002) [http://www.guardian.co.uk/uk/2002/apr/13/politics.partyfunding Profile:Isaac Kaye] <i>The Guardian</i> 13th April 2002. Accessed 4th April 2008</ref>(In both South Africa and Britain). His company also stands accused of price fixing through a cartel of drugs companies which is estimated to have defrauded the NHS of an estimated £400million<ref>Serious Fraud Office [http://www.sfo.gov.uk/news/prout/pr_510.asp?id=510 Suspected fraud on the National Health Service] Press release 10th April 2002. Accessed 4th April 2008</ref> and violation of workers rights have also featured through the barring of union activity (as unions are "not in line with company philosophy"!<ref>Cited in Osler, D. (2006) [http://www.davidosler.com/2006/04/new_labour_and_the_generic_med.html New Labour and the generic medicine scam] Accessed 4th April 2008,  Original source:FRANCIS WHEEN, WHEEN'S WORLD: DOBBO'S MEDICINE MAN: FRANK'S PHARMACEUTICAL FRIENDS The Guardian April 26, 2000</ref>). See [[Isaac Kaye business activities]] for more details.
  
In 2006 IVAX was aquired by [[Teva]] which is described as 'Israel's largest company'. The aquisition is reported to have created 'the world's largest generics company'.  
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==South Africa's Apartheid regime==
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Kaye was a supporter of the South Africa's Apartheid regime<ref>Michael Gillard, 28th September 2000. Apartheid Supporter Who Is a £100,000 Backer of Labour. The Daily Express</ref>, the Afrikaner-led National party<ref>Maguire K (2002) [http://www.guardian.co.uk/uk/2002/apr/13/politics.partyfunding Profile:Isaac Kaye] <i>The Guardian</i> 13th April 2002. Accessed 4th April 2008</ref>. Such claims are reported to be contested by Kaye’s lawyer. However, Dave Osler states<ref>Osler, D. (2006) [http://www.davidosler.com/2006/04/new_labour_and_the_generic_med.html New Labour and the generic medicine scam] Accessed 4th April 2008</ref>, 'it was admitted that Kaye did back one National Party candidate on grounds of childhood friendship' ([[John Erasmus]]<ref>McSmith, A. (2002) [http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2002/04/13/ndonor13.xml  Fraud squad raids firm of Labour Party donor] <i>The Telegraph</i>13th April 2002. Accessed 4th April 2008</ref>). Kaye is reported to have met Erasmus whilst he was in Rhodesia (now known as Zimbabwe), however little else is known about Kaye's time there<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000</ref>. According to The <i>Express</i>, 'Erasmus served in the Rhodesian security forces after the whites-only government of [[Ian Smith]] declared UDI in 1965'.
  
Kaye lives in a luxury apartment in [[Grosvenor Square]], Mayfair, London<ref>Evans, R & Hencke, D. (2002) [http://www.guardian.co.uk/money/2002/may/25/tax.politics 'Tax loopholes on homes benefit the rich and cost UK millions']. The <i>Guardian</i> 25th May 2002. Accessed 22nd May 2008</ref><ref>Maguire K (2002) [http://www.guardian.co.uk/uk/2002/apr/13/politics.partyfunding Profile:Isaac Kaye] <i>The Guardian</i> 13th April 2002. Accessed 4th April 2008</ref> (since 1990<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000.</ref>) and has been a registered voter since 1991<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000.</ref>.
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Osler reports<ref>Osler, D. (2006) [http://www.davidosler.com/2006/04/new_labour_and_the_generic_med.html New Labour and the generic medicine scam] Accessed 4th April 2008</ref> that Kaye also offered National Party minister for health Dr [[Lapa Munnik]] the 'use of cars to transport supporters to the polls at a crucial 1979 by-election'. Munnik is described as 'an apartheid stalwart who threatened to close Catholic schools if they dared to admit non-white pupils'. Kaye also served on the board of [[South African Druggists]] (1977-1982) whose 'executives were also seconded to assist the election efforts of the Afrikaaner-led National Party'. According to [[Peter Goldberg]] ('Kaye's right-hand man') Kaye had personally approved every gift or payment given, yet Kaye is reported to have 'no recollection' of supporting Munnik or Bornman (another National Party candidate who received support by Kaye). Kaye's laywer, [[Warren Roiter]], states that the only South African political party Kaye had "financially aided" was the opposition [[Progressive Party]] and that Kaye 'is a warm supporter of the peaceful transition to a multi-racial democracy in that country'. yet claims to the contrary continues to mount<ref>Gillard, M. (2000) 'APARTHEID SUPPORTER WHO IS A GBP 100,000 BACKER OF LABOUR'. The <i>Express</i>. 28th september 2000</ref>.
  
Kaye is reported to have stepped down as chairman of Norton Healthcare in 2003<ref>Brogan, B. & Gysin, C. (2008) Hain faces sack in sleaze inquiry; He could be barred - but Brown might fire him first. <i>The Daily Mail</i> (London). 12th January 2008</ref>. <i>Plunkett's Health Care Industry Almanac</i> reports IVAX profits totalling $243,200,000 for 2001, $131,000,000 for 2000 and $70,700,000 for 1999. Their sales totals were $1,215,400,000, $793,400,000, and $656,500,000 respectively.
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An award-winning investigation by the South African journalist Martin Welz, also alleges that Kaye seconded one of his company's executives to campaign for another candidate, [[Gerrit Bornman]]<ref>Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party&#8239; to the super-rich'. <i>The Guardian</i>. 5th February 2008</ref>. Bornman is reported to have told the <i>Express</i> that Kaye had been a "substantial" backer of the National party<ref>ibid</ref>.  
  
===Kaye, the 'Smooth Talker'===
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In <i>The Express</i><ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000</ref> in 2000, Welz is quoted as saying that Kaye 'lived in the best suburbs, dined in the best restaurants and socialised in the best circles'. <i>The Express</i> article continues by reporting that Kaye 'had a large and beautiful house in the upmarket Sandton suburb of Johannesburg. It was obscured behind a large garden at the end of a long, gated drive'. Kaye is reported to have been careful to avoid personal publicity whilst in South Africa. Even in 2000, IVAX's company documents make no reference to his previous business activities in connection to South Africa<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000</ref>.
[[Peter Goldberg]], who is reported to have been Kaye's 'right-hand man', describes Kaye as having "pizzazz, fantastic gut feel for a gap or a deal. He's a people's man, a smooth talker. He knew everyone in Pretoria. If he needed to get to know someone he got to know them, even if he had to go through a ten foot wall." <ref>Gillard, M. (2000) 'APARTHEID SUPPORTER WHO IS A GBP 100,000 BACKER OF LABOUR'. The <i>Express</i>. 28th september 2000</ref>.
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Kaye appears to have moved from Rhodesia to South Africa in the 1970's with his partner [[Bernard 'Dusty' Miller]]. They are reported to have 'built up their [[Alumina Development]] group into a major supplier to hospitals' before selling it for £8.5million to [[South African Druggists]] in 1977<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000</ref>. The <i>Chemist and Druggist</i> report that Kaye undertook his initial training as a pharmacist in the Rhodesian township of Bulawayo<ref><i>Chemist and Druggist</i> 'It's goodbye from him' June 28th 2003</ref>
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==Kaye the 'veteran supporter of Israel'==
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The <i>Jewish Chronicle</i> describes Kaye as 'a veteran supporter of Israel'<ref>Rocker, S. (2006) [http://www.thejc.com/home.aspx?AId=44619&ATypeId=1&search=true2&srchstr=isaac%20kaye&srchtxt=1&srchhead=1&srchauthor=1&srchsandp=1&scsrch=0 'Bicom: the rich and powerful']. The <i>Jewish Chronicle</i>. 22nd June 2006</ref>.
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In 2006, a <i>Guardian</i> report by Jerusalem correspondent [[Chris McGreal]] drew parallels between Israel and apartheid-era South Africa stating that “as in white South Africa,” there was in Israel “a world of discrimination and oppression that most Israelis choose not to see.” 'There were few places where governments constructed “a web of nationality and residency laws designed for use by one sector of the population against another. Apartheid South Africa was one. Israel was another.”' Israeli Ambassador [[Zvi Heifetz]] then convened a 'gathering of leaders' to discuss a response to the article. This included Chief Rabbi Sir [[Jonathan Sacks]], [[Lord Janner]], [[Bicom]] chair [[Poju Zabludowicz]], [[Isaac Kaye]], [[Gerald Ronson]] and [[Henry Grunwald]]. Ronson and Grunwald then met with the papers editor, [[Alan Rusbridger]] where they 'conveyed communal anger' over the article. Following this, [[Benjamin Pogrund]] (former deputy editor of the <i>Daily Mail</i>) published a rebuttal<ref>Josephs, B. (2006) [http://www.thejc.com/home.aspx?AId=42277&ATypeId=1&search=true2&srchstr=isaac%20kaye&srchtxt=1&srchhead=1&srchauthor=1&srchsandp=1&scsrch=0 Complaint to Guardian over apartheid analogy']. The <i>Jewish Chronicle</i>. 23rd February 2006</ref>.
  
==South Africa's Apartheid regime==
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===Labour Friends of Israel===
Kaye was a supporter of the South Africa's Apartheid regime<ref>Michael Gillard, 28th September 2000. Apartheid Supporter Who Is a £100,000 Backer of Labour. The Daily Express</ref>, the Afrikaner-led National party<ref>Maguire K (2002) [http://www.guardian.co.uk/uk/2002/apr/13/politics.partyfunding Profile:Isaac Kaye] <i>The Guardian</i> 13th April 2002. Accessed 4th April 2008</ref>. Such claims are reported to be contested by Kaye’s lawyer. However, as Osler states<ref>Osler, D. (2006) [http://www.davidosler.com/2006/04/new_labour_and_the_generic_med.html New Labour and the generic medicine scam] Accessed 4th April 2008</ref>, 'it was admitted that Kaye did back one National Party candidate on grounds of childhood friendship' ([[John Erasmus]]<ref>McSmith, A. (2002) [http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2002/04/13/ndonor13.xml  Fraud squad raids firm of Labour Party donor] <i>The Telegraph</i>13th April 2002. Accessed 4th April 2008</ref>). Kaye is reported to have met Erasmus whilst he was in Rhodesia (now known as Zimbabwe), however little else is known about Kaye's time there<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000</ref>. According to The <i>Express</i>, 'Erasmus served in the Rhodesian security forces after the whites-only government of [[Ian Smith]] declared UDI in 1965'. 
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In 2002, Isaac Kaye and [[David Garrard]] sponsored the [[Labour Friends of Israel]] Annual Lunch. Amongst those in attendence were [[Jack Straw]] and Israeli Ambassador, [[Zvi Shtauber]]. In his speech at the event, Straw thanked [[Michael Levy]] for his work on behalf of the Jewish community in Britain<ref>Straw, J. (2002) [http://www.britemb.org.il/News/straw130302.html Speech by Foreign Secretary Jack Straw at the Labour Friends of Israel Annual Lunch] 13th March 2002. Accessed 2nd July 2008</ref>.
  
Osler reports<ref>Osler, D. (2006) [http://www.davidosler.com/2006/04/new_labour_and_the_generic_med.html New Labour and the generic medicine scam] Accessed 4th April 2008</ref> that Kaye also offered National Party minister for health Dr [[Lapa Munnik]] the 'use of cars to transport supporters to the polls at a crucial 1979 by-election'. Munnik is described as 'an apartheid stalwart who threatened to close Catholic schools if they dared to admit non-white pupils'. Kaye also served on the board of [[South African Druggists]] (1977-1982) whose 'executives were also seconded to assist the election efforts of the Afrikaaner-led National Party'. According to [[Peter Goldberg]] ('Kaye's right-hand man') Kaye had personally approved every gift or payment given<ref>Gillard, M. (2000) 'APARTHEID SUPPORTER WHO IS A GBP 100,000 BACKER OF LABOUR'. The <i>Express</i>. 28th september 2000</ref>.
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===An early ‘key backer’ of BICOM===
  
An award-winning investigation by the South African journalist Martin Welz, also alleges that Kaye seconded one of his company's executives to campaign for another candidate, [[Gerrit Bornman]]<ref>Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party&#8239; to the super-rich'. <i>The Guardian</i>. 5th February 2008</ref>. Bornman is reported to have told the <i>Express</i> that Kaye had been a "substantial" backer of the National party<ref>ibid</ref>. In <i>The Express</i><ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000</ref> in 2000, Welz is quoted as saying that Kaye 'lived in the best suburbs, dined in the best restaurants and socialised in the best circles'. <i>The Express</i> article continues by reporting that Kaye 'had a large and beautiful house in the upmarket Sandton suburb of Johannesburg. It was obscured behind a large garden at the end of a long, gated drive'. Kaye is reported to have been careful to avoid personal publicity whilst in South Africa. Even in 2000, IVAX's company documents make no reference to his previous business activities in connection to South Africa<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000</ref>.
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Isaac Kaye is a South African born multi-millionaire who came to Britain in 1985. Like [[David Green]], he was reported to be a ‘key backer’ of [[BICOM]] shortly after its establishment in 2002<ref>Bernard Josephs, ‘Sacks: it was a mistake to speak to Guardian’, ''Jewish Chronicle'', 6 September 2002, p.3.</ref> and is reported to be one of the organisation’s board members.<ref>Bernard Josephs, ‘Labour donor calls Hain row “rubbish”’, ''TheJC.com'', 17 January 2008.</ref>  
  
Kaye appears to have moved from Rhodesia to South Africa in the 1970's with his partner [[Bernard 'Dusty' Miller]]. They are reported to have 'built up their [[Alumina Development]] group into a major supplier to hospitals' before selling it for £8.5million to [[South African Druggists]] in 1977<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000</ref>. The <i>Chemist and Druggist</i> report that Kaye undertook his initial training as a pharmacist in the Rhodesian township of Bulawayo<ref><i>Chemist and Druggist</i> 'It's goodbye from him' June 28th 2003</ref>
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Kaye made his millions from drugs companies<ref>Institute for Medical Research Israel-Canada, [http://imric.org/news/news/2012-kaye-innovation-award-recipients-includes-two-imric-researchers 2012 Kaye Innovation Award Recipients Include Two IMRIC Researchers]</ref> and has been associated with a number of political scandals. In South Africa during the early 1980s an official ‘gifts for influence’ inquiry found that he had ‘no scruples about applying dishonest or unethical methods’,<ref>George Monbiot, [http://www.theguardian.com/commentisfree/2008/feb/05/labour.partyfunding ‘This scandal makes it clear: for Labour, money trumps principle every time’], Guardian,
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5 February 2008.</ref> although Kaye denied ‘any impropriety, saying the giving of presents was not an inducement but an appreciation’. In the UK Kaye became a major donor to New Labour in the late 1990s and in 2008 funded Peter Hain’s bid for the deputy leadership via a think tank that had ‘never’ held a meeting.<ref>Patrick Wintour and David Hencke,[http://www.theguardian.com/politics/2008/jan/12/uk.partyfunding ‘Questions over “thinktank” pile pressure on Hain Body that paid thousands to minister’s campaign ‘has never held meeting’], ''The Guardian'', 12 January 2008.</ref><ref>Jamie Doward and Ben Quinn, [http://www.theguardian.com/politics/2008/jan/13/uk.partyfunding ‘”Think tank” that fuelled Hain’s bid’, ''The Observer'', Sunday 13 January 2008.</ref> He is a donor to [[Labour Friends of Israel]] and the [[United Jewish Israel Appeal]] as well as BICOM<ref>Bernard Josephs, ‘Labour donor calls Hain row “rubbish”’, TheJC.com, 17 January 2008.</ref> and has business interests in Israel where he co-founded the venture capital firm [[Israel Healthcare Ventures]] (IHCV).<ref>[http://www.trevihealth.com/about_strategic_partners.html Strategic Partners], Trevi Health Ventures, accessed 7 February 2014.</ref> Like Zabludowicz, Kaye has also funded the [[Herzliya Conference]] at the [[Interdisciplinary Center]], Israel’s only private university.<ref>[http://www.herzliyaconference.org/eng/_Uploads/dbsAttachedFiles/AcknowledgmentsE(3).pdf Acknowledgements], herzliyaconference.org, accessed 7 February 2014.</ref>
  
 
==Financing Labour==
 
==Financing Labour==
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In 2008, <i>The Independent</i> reports<ref>Brady, B. (2008) [http://www.independent.co.uk/news/uk/politics/ive-done-nothing-wrong-peter-hain-insists-as-he-battles-for-his-political-life-769981.html 'I've done nothing wrong,' Peter Hain insists, as he battles for his political life]<i>The Independent</i> 13th January 2008. Accessed 4th April 2008</ref> that Kaye donated nearly £15,000 to [[Peter Hain]] through the [[Progressive Policies Forum]] (PPF) think tank (which was set up three months after the launch of Mr Hain's campaign) to finance Hain's failed deputy leadership campaign. The Progressive Policies Forum was set up by [[John Underwood]] (former director of communications for the Labour Party, founder of [[Clear Communications]] and Business Development Director of [[Freshwater UK]]<ref>Freshwater UK [http://www.freshwater-uk.com/directors.html Directors] Accessed 4th April2008</ref>) in 2006 and 'channelled over £50,000 in donations and loans to Peter Hain's deputy leadership campaign'<ref>Brady, B. (2008) [http://www.independent.co.uk/news/uk/politics/ive-done-nothing-wrong-peter-hain-insists-as-he-battles-for-his-political-life-769981.html 'I've done nothing wrong,' Peter Hain insists, as he battles for his political life]<i>The Independent</i> 13th January 2008. Accessed 4th April 2008</ref>. The report continues by stating that the PPF 'has no staff, no board, no website and no published research'. Hain appeared as a guest of honour at Freshwater's table at a Labour fund-raising dinner and publicly praised Freshwater as a "modern, dynamic company" that he wanted to see go "from strength to strength"<ref>Pierce, A. (2008) 'Why he fell Spending spree that sent Hain's career into a tailspin' <i>The Daily Telegraph</i>. 25th January 2008.</ref>. He is reported to have "absolutely no regrets" over his links to the company.
 
In 2008, <i>The Independent</i> reports<ref>Brady, B. (2008) [http://www.independent.co.uk/news/uk/politics/ive-done-nothing-wrong-peter-hain-insists-as-he-battles-for-his-political-life-769981.html 'I've done nothing wrong,' Peter Hain insists, as he battles for his political life]<i>The Independent</i> 13th January 2008. Accessed 4th April 2008</ref> that Kaye donated nearly £15,000 to [[Peter Hain]] through the [[Progressive Policies Forum]] (PPF) think tank (which was set up three months after the launch of Mr Hain's campaign) to finance Hain's failed deputy leadership campaign. The Progressive Policies Forum was set up by [[John Underwood]] (former director of communications for the Labour Party, founder of [[Clear Communications]] and Business Development Director of [[Freshwater UK]]<ref>Freshwater UK [http://www.freshwater-uk.com/directors.html Directors] Accessed 4th April2008</ref>) in 2006 and 'channelled over £50,000 in donations and loans to Peter Hain's deputy leadership campaign'<ref>Brady, B. (2008) [http://www.independent.co.uk/news/uk/politics/ive-done-nothing-wrong-peter-hain-insists-as-he-battles-for-his-political-life-769981.html 'I've done nothing wrong,' Peter Hain insists, as he battles for his political life]<i>The Independent</i> 13th January 2008. Accessed 4th April 2008</ref>. The report continues by stating that the PPF 'has no staff, no board, no website and no published research'. Hain appeared as a guest of honour at Freshwater's table at a Labour fund-raising dinner and publicly praised Freshwater as a "modern, dynamic company" that he wanted to see go "from strength to strength"<ref>Pierce, A. (2008) 'Why he fell Spending spree that sent Hain's career into a tailspin' <i>The Daily Telegraph</i>. 25th January 2008.</ref>. He is reported to have "absolutely no regrets" over his links to the company.
  
Hain is reported to have been an anti-apartheid campaigner, yet Kaye's support of the pro-apartheid National Party did not stop him from taking the money<ref>Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party&#8239; to the super-rich' <i>The Guardian</i> 5th February 2008</ref>. This leads us on to a crucial question when it comes to the financing of political parties, a question of how morals and ideals can be swept aside in the process of securing finances. How 'money trumps principle every time'. As Monbiot states... 
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Hain is reported to have been an anti-apartheid campaigner, yet Kaye's support of the pro-apartheid National Party did not stop him from taking the money<ref>Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party&#8239; to the super-rich' <i>The Guardian</i> 5th February 2008</ref>. This leads us on to a crucial question when it comes to the financing of political parties, a question of whether morals and ideals can be swept aside in the process of securing finances. According to Monbiot, 'money trumps principle every time'.<ref>Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party&#8239; to the super-rich' <i>The Guardian</i> 5th February 2008</ref> As Monbiot states
 
:'You enter politics with the highest ideals and end up grovelling to multi-millionaires. Campaign finance is not the only reason for the corruption of leftwing political parties. But any system without a cap on individual donations encourages the mass abandonment of political programmes. You need to spend much less time and effort and money to secure thousands of pounds from a rich man than to shake it out of the piggybanks of hundreds of new members. Who can blame you if you adjust your programme to please the millionaires?'<ref>Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party&#8239; to the super-rich' <i>The Guardian</i> 5th February 2008</ref>
 
:'You enter politics with the highest ideals and end up grovelling to multi-millionaires. Campaign finance is not the only reason for the corruption of leftwing political parties. But any system without a cap on individual donations encourages the mass abandonment of political programmes. You need to spend much less time and effort and money to secure thousands of pounds from a rich man than to shake it out of the piggybanks of hundreds of new members. Who can blame you if you adjust your programme to please the millionaires?'<ref>Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party&#8239; to the super-rich' <i>The Guardian</i> 5th February 2008</ref>
  
Line 35: Line 43:
  
 
Kaye is also reported to have 'paid for new tennis courts at Chequers'<ref>The <i>Evening Standard</i> (London). 'Drugs boss in NHS fraud inquiry is big Labour donor; Londoner's Diary'. 12th April 2002.</ref>
 
Kaye is also reported to have 'paid for new tennis courts at Chequers'<ref>The <i>Evening Standard</i> (London). 'Drugs boss in NHS fraud inquiry is big Labour donor; Londoner's Diary'. 12th April 2002.</ref>
 +
 +
===Kaye, the 'Smooth Talker'===
 +
[[Peter Goldberg]], who is reported to have been Kaye's 'right-hand man', describes Kaye as having "pizzazz, fantastic gut feel for a gap or a deal. He's a people's man, a smooth talker. He knew everyone in Pretoria. If he needed to get to know someone he got to know them, even if he had to go through a ten foot wall." <ref>Gillard, M. (2000) 'APARTHEID SUPPORTER WHO IS A GBP 100,000 BACKER OF LABOUR'. The <i>Express</i>. 28th september 2000</ref>.
  
 
==Gifts for influence==
 
==Gifts for influence==
In South Africa during the 1970's, Kaye companies [[CE Electro-Medical]] and [[Continental Ethicals]] (which were controlled through [[Alumina Development Corporation]]) 'captured a large slice of the business for X-ray film and drugs from South African hospitals'<ref>Gillard, M. (2000) 'APARTHEID SUPPORTER WHO IS A GBP 100,000 BACKER OF LABOUR'. The <i>Express</i> 28th September 2000</ref>. Alumina was sold for £8.5million to [[South African Druggists]] in 1977. Kaye was then involved with South African Druggists as a director until 1982.
 
  
 
<i>The Guardian</i> reported that<ref>Maguire K (2002) [http://www.guardian.co.uk/uk/2002/apr/13/politics.partyfunding Profile:Isaac Kaye] <i>The Guardian</i> 13th April 2002. Accessed 4th April 2008</ref>...
 
<i>The Guardian</i> reported that<ref>Maguire K (2002) [http://www.guardian.co.uk/uk/2002/apr/13/politics.partyfunding Profile:Isaac Kaye] <i>The Guardian</i> 13th April 2002. Accessed 4th April 2008</ref>...
:'Kaye was caught up in a "gifts for influence" scandal in South Africa during the early 1980s amid claims that doctors were being rewarded with everything from cars and TVs to swimming pool equipment and chandeliers for prescribing drugs made by his then firm. He denied any impropriety, saying the giving of presents was not an inducement but an appreciation'.
+
:'Kaye was caught up in a "gifts for influence" scandal in South Africa during the early 1980s amid claims that doctors were being rewarded with everything from cars and TVs to swimming pool equipment and chandeliers for prescribing drugs made by his then firm. He denied any impropriety, saying the giving of presents was not an inducement but an appreciation'.  
 
 
Monbiot<ref>Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party&#8239; to the super-rich'. 5th February 2008.</ref> adds that the 'gifts' given by Kaye's drugs company ([[Alumina]]) went 'to people working in the health sector, including academics who sat on the South African government's advisory panels, the head of the Medical Research Council and the minister of health'. The list of 'gifts' also included shares and trips abroad. The official inquiry into the scandal found that Kaye had "no scruples about applying dishonest or unethical methods".
 
 
 
A report by the <i>Express</i> in 2000 lists gifts including company cars, payment of credit card and garage bills, swimming pool equipment, chandeliers, a radio control unit for a model boat, TV sets, trips to Europe, the Far East and shares in Kaye linked companies. These 'gifts' which were disclosed in 1983 were described by Kaye's Former employees as 'an essential part of an aggressive campaign "to win friends in high places"'<ref>Gillard, M. (2000) 'APARTHEID SUPPORTER WHO IS A GBP 100,000 BACKER OF LABOUR'. The <i>Express</i> 28th September 2000</ref>.  
 
  
According to the <i>Express</i>, 'Kaye's success in Britain, the row over Norton's sales tactics and his support of the government in power mirrors exactly what happened in South Africa'<ref>Gillard, M. (2000) 'APARTHEID SUPPORTER WHO IS A GBP 100,000 BACKER OF LABOUR'. The <i>Express</i> 28th September 2000</ref>.
+
However the official inquiry into the scandal found that Kaye had "no scruples about applying dishonest or unethical methods"<ref>Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party&#8239; to the super-rich'. 5th February 2008.</ref>. As his former employees claim, such 'gifts' were 'an essential part of an aggressive campaign "to win friends in high places"'<ref>Gillard, M. (2000) 'APARTHEID SUPPORTER WHO IS A GBP 100,000 BACKER OF LABOUR'. The <i>Express</i> 28th September 2000</ref>. It was not only doctors who received 'gifts' but also academics who sat on the South African government's advisory panels, the head of the Medical Research Council and the minister of health<ref>Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party&#8239; to the super-rich'. 5th February 2008.</ref>.  
  
In 1996, Norton Healthcare was severely condemned by the [[Association of the British Pharmaceutical Industry]] for offering "unnacceptable inducements" (including mountain bikes and Marks and Spencers vouchers) to pharmacists who increased their orders for Norton products.<ref> [http://www.monbiot.com/archives/2008/02/05/death-of-the-noble-idea/ Death of the Noble Idea]
+
This behaviour continued when Kaye came to Britain, as the <i>Express</i> report, 'Kaye's success in Britain, the row over Norton's sales tactics and his support of the government in power mirrors exactly what happened in South Africa'<ref>Gillard, M. (2000) 'APARTHEID SUPPORTER WHO IS A GBP 100,000 BACKER OF LABOUR'. The <i>Express</i> 28th September 2000</ref>.
Posted February 5, 2008 Big money trumps everything in politics, even the most dearly-held beliefs By George Monbiot. Published in the Guardian 5th February 2008; FRANCIS WHEEN, WHEEN'S WORLD: DOBBO'S MEDICINE MAN: FRANK'S PHARMACEUTICAL FRIENDS The Guardian April 26, 2000</ref>. It is reported that Labour's health minister complained that "it is completely unacceptable for pharmaceutical companies to encourage health professionals to use their products through free gifts and other sweeteners"<ref>Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party&#8239; to the super-rich'. 5th February 2008.</ref>.  
 
  
In 1998, the government announced that it was giving Norton a £990,000 Regional Selective Assistance grant to set up a new plant in London. The purpose of this grant is to boost employment in the local area and to promote "inward investment in the manufacturing sector"<ref>Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party&#8239; to the super-rich'. 5th February 2008.</ref>. Yet, as <i>The Guardian</i> goes on to report, Norton's parent company revealed that it would stop manufacturing in the UK (and move to Ireland) the week before the government announced this funding! In October 1998 it closed down all its other manufacturing and packaging plants in South East England and moved them to Ireland, cutting 500 jobs in the process. This "re-structuring" helped the IVAX Corporation's share price to rise by 80% in 1998 - Kaye is the second largest shareholder, with a stake worth $136 million held by the [[I. Kaye Family Trust]] (via a Guernsey-based company called [[Charter Trust]], which in turn hold the shares via another company called [[Azure Ltd]])<ref>McGee, H. (2002) 'Alleged fraud firm linked to millionaire with Irish passport'. <i>Sunday Tribune</i> (Ireland). 14th April 2002</ref>.
+
Norton Healthcare (Part of IVAX) has been condemned by the [[Association of the British Pharmaceutical Industry]] for offering "unnacceptable inducements"<ref> [http://www.monbiot.com/archives/2008/02/05/death-of-the-noble-idea/ Death of the Noble Idea]
 +
Posted February 5, 2008 Big money trumps everything in politics, even the most dearly-held beliefs By George Monbiot. Published in the Guardian 5th February 2008; FRANCIS WHEEN, WHEEN'S WORLD: DOBBO'S MEDICINE MAN: FRANK'S PHARMACEUTICAL FRIENDS The Guardian April 26, 2000</ref>. Also the awarding of a £990,000 grant to Norton to set up a new plant in London (to boost employment and promote investment) one week after it was revealed that Norton was to cease manufacturing in the UK and relocate to Ireland (cutting 500 jobs in the process) certainly raises some questions!<ref>McGee, H. (2002) 'Alleged fraud firm linked to millionaire with Irish passport'. <i>Sunday Tribune</i> (Ireland). 14th April 2002</ref>    
  
==Barring Union Activity - a violation of rights==
+
See [[Isaac Kaye business activities]] for more details.
Kaye refuses to recognise Trade Unions at Norton Healthcare because they are "not in line with company philosophy"!<ref>Cited in Osler, D. (2006) [http://www.davidosler.com/2006/04/new_labour_and_the_generic_med.html New Labour and the generic medicine scam] Accessed 4th April 2008,  Original source:FRANCIS WHEEN, WHEEN'S WORLD: DOBBO'S MEDICINE MAN: FRANK'S PHARMACEUTICAL FRIENDS The Guardian April 26, 2000</ref> According to Osler, 'In May 2000, a Kentucky judge ruled that Norton unlawfully violated the rights of its nurses at one of its US hospitals, by barring them from union activity in their own time. This was held to be in violation of the National Labor Relations Act'<ref>Osler, D. (2006) [http://www.davidosler.com/2006/04/new_labour_and_the_generic_med.html New Labour and the generic medicine scam] Accessed 4th April 2008</ref>.
 
  
 
==NHS £400m rip-off?==
 
==NHS £400m rip-off?==
When [[Frank Dobson]] was Health Minister he called on the NHS to save money by buying cheaper generic drugs, rather than expensive name brands. However, as NHS spending shifted to the generic drugs, their prices increased too - for instance, by 1999 the price of a pack of Norton Healthcare Thyroxine tablets had increased from £6.84 12 months earlier, to £44.89!<ref>Osler, D. (2006) [http://www.davidosler.com/2006/04/new_labour_and_the_generic_med.html New Labour and the generic medicine scam] Accessed 4th April 2008</ref> As a result the NHS doesn't save money, but the IVAX Corporation makes huge profits. As stated by Osler, 'Such tactics saw Ivax’s profits rise over 70% in 2000, despite a 12% decline in turnover'<ref>Osler, D. (2006) [http://www.davidosler.com/2006/04/new_labour_and_the_generic_med.html New Labour and the generic medicine scam] Accessed 4th April 2008</ref>. IVAX's "Easi-Breathe" inhaler has been named a Millennium Product by the Government and is displayed in the Dome<ref>Ref needed</ref>. Norton Healthcare is reported to be 'the biggest supplier of generic drugs to the NHS'<ref>Livingstone, T. (2008) ''I find it hard to see how he can continue if he is the sort of man who forgets about pounds 100,000'. The <i>Western Mail</i>. 12th January 2008</ref>.
+
In 2002 Kaye's company [[Norton Healthcare Ltd]] (a subsidiary of [[IVAX Corporation]]) was 'raided by police investigating an alleged £400m rip-off of the NHS' and was 'one of six firms suspected of being involved in a price fixing cartel to push up prices charged to the NHS'<ref>Maguire K (2002) [http://www.guardian.co.uk/uk/2002/apr/13/politics.partyfunding Profile:Isaac Kaye] <i>The Guardian</i> 13th April 2002. Accessed 4th April 2008</ref>.
 
+
After initial enquiries carried out by the Counter Fraud Directorate of the Department of Health, The Serious Fraud Office (SFO) began an investigation 'into a suspected conspiracy to defraud the NHS in relation to prices charged by suppliers' between 1996 and 2000<ref>Serious Fraud Office [http://www.sfo.gov.uk/news/prout/pr_510.asp?id=510 Suspected fraud on the National Health Service] Press release 10th April 2002. Accessed 4th April 2008</ref>.  One of the antibiotics (called amoxycillin) is described as 'one of Britain's most commonly prescribed drugs' which the companies allegedly conspired to raise the price of, 'by up to 260 per cent'<ref><i>The Times</i> 'The week that was Britain'. 27th December 2003</ref>.  
In 2002 <i>The Guardian</i> reported that, Kaye's company was 'raided by police investigating an alleged £400m rip-off of the NHS' and was 'one of six firms suspected of being involved in a price fixing cartel to push up prices charged to the NHS'. IVAX denied any 'wrongdoing'<ref>Maguire K (2002) [http://www.guardian.co.uk/uk/2002/apr/13/politics.partyfunding Profile:Isaac Kaye] <i>The Guardian</i> 13th April 2002. Accessed 4th April 2008</ref>.
 
After initial enquiries carried out by the Counter Fraud Directorate of the Department of Health, The Serious Fraud Office (SFO) began an investigation 'into a suspected conspiracy to defraud the NHS in relation to prices charged by suppliers for prescribed penicillin based antibiotics and warfarin between 1st January 1996 and 31st December 2000'<ref>Serious Fraud Office [http://www.sfo.gov.uk/news/prout/pr_510.asp?id=510 Suspected fraud on the National Health Service] Press release 10th April 2002. Accessed 4th April 2008</ref>.  One of the antibiotics (called amoxycillin) is described as 'one of Britain's most commonly prescribed drugs' which the companies allegedly conspired to raise the price of, 'by up to 260 per cent'<ref><i>The Times</i> 'The week that was Britain'. 27th December 2003</ref>. The NHS reportedly spends £39million a year on amoxycillin<ref>Newling, D. (2003) 'Drug firms 'in price-fix scam'. The <i>Daily Mail</i>. 22nd December 2003</ref> and in the <i>Evening Standards</i> 'Experts are reported to have said that the NHS 'could have been overcharged by as much as 30 million'<ref>Goodway, N. (2003) 'Drug firms face action over '170m NHS fraud'. <i>The Evening Standard</i> 22nd December 2003.</ref>. In April 2006, The <i>Guardian</i> reported that Norton had 'been named in three ongoing lawsuits relating to the supply of blood-thinning drug warfarin, penicillin-based antibiotics and a generic version of anti-ulcer pill Zantac'<ref>Bowers, S.(2006) Financial: Pharmaceutical: Norton pays NHS £13.5m over price fixing claims. <i>The Guardian</i> April 5th 2006</ref>.
 
 
 
The six pharmaceutical companies being investigated by the Serious Fraud Office were<ref>Serious Fraud Office [http://www.sfo.gov.uk/news/prout/pr_510.asp?id=510 Suspected fraud on the National Health Service] Press release 10th April 2002. Accessed 4th April 2008</ref>:
 
  
* [[Generics UK Ltd]].
+
Norton Healthcare is reported to be 'the biggest supplier of generic drugs to the NHS'<ref>Livingstone, T. (2008) ''I find it hard to see how he can continue if he is the sort of man who forgets about pounds 100,000'. The <i>Western Mail</i>. 12th January 2008</ref>. [[Frank Dobson]], whom Kaye donated £10,000 to for his London mayoral campaign, was behind a call for the NHS to switch from brand named drugs to generic ones. This was intended to save the NHS money, yet phenomenal price hikes meant huge profits for Norton instead<ref>Osler, D. (2006) [http://www.davidosler.com/2006/04/new_labour_and_the_generic_med.html New Labour and the generic medicine scam] Accessed 4th April 2008</ref>. The alleged conspiracy of 260% increases appears almost modest compared to the example of Norton Healthcare Thyroxine tablets which rose from £6.84 a pack in 1998 to £44.89 in 1999!<ref>Osler, D. (2006) [http://www.davidosler.com/2006/04/new_labour_and_the_generic_med.html New Labour and the generic medicine scam] Accessed 4th April 2008</ref>
* [[Kent Pharmaceuticals Ltd]].
 
* [[Regent-GM Laboratories Ltd]].
 
* [[Goldshield Group Plc]].
 
* [[Norton Healthcare Ltd]] - a subsidiary of [[Ivax Corporation]]
 
* [[Ranbaxy (UK) Ltd]] - a subsidiary of [[Ranbaxy Laboratories Ltd]]
 
  
The <i>Daily Mail</i> reports<ref>NEWLING, D. (2003) Drug firms 'in price-fix scam'. <i>The Daily Mail</i>. 22nd december 2003</ref> that 'NHS investigators claim that in 1997 and 1998 senior representatives from the seven firms met near Heathrow and agreed to act together'. According to the NHS's Claim Form, 'A series of meetings followed at which the defendants negotiated a sophisticated scheme by means of which the prices and supply of penicillins in the UK market could be controlled and manipulated'. It is alleged that this involved 'raising prices and restricting supply' in order to 'almost quadruple the cost of the common antibiotic amoxicillin'. The allegations also relate to the price fixing of over 30 other drugs. The <i>Independent</i> also adds the claims that, at the Heathrow meeting, the senior representatives of the firms 'considered the possibility of arrangements designed to reduce competition in the UK..' and agreed to 'refuse to sell the drugs to the NHS below an agreed price'<ref>Burleigh, J. (2003) 'NHS TO SUE SEVEN DRUG FIRMS FOR FIXING PRICE' OF MEDICINES'. <i>The Independent</i>. 22nd December 2003</ref>. The <i>Sunday Times</i> reported in 2002 that 'Executives are said to have held a secret meeting in offices in Kensington High Street, London, in July 1998 to review their plot and extend it to overseas markets. It is claimed the groups lied about supplies of warfarin to force the price up'<ref>Calvert, J. (2002) 'Government sues drug giants for 'cheating' NHS'. <i>Sunday Times</i>. 22nd December 2002</ref>. The report continues by stating that the 'Government alleges' that... 
+
It is alleged that senior representatives of the firms met secretly to negotiate a sophisticated scheme to manipulate and control the market by raising prices and restricting supply, an arrangement designed to reduce competition in the UK which included lying about supplies to force prices up<ref>NEWLING, D. (2003) Drug firms 'in price-fix scam'. <i>The Daily Mail</i>. 22nd december 2003</ref><ref>Burleigh, J. (2003) 'NHS TO SUE SEVEN DRUG FIRMS FOR FIXING PRICE' OF MEDICINES'. <i>The Independent</i>. 22nd December 2003</ref><ref>Calvert, J. (2002) 'Government sues drug giants for 'cheating' NHS'. <i>Sunday Times</i>. 22nd December 2002</ref>.
:'In 11 months in 1997 Regent increased revenue on sales of warfarin by 140% though the volume of its supplies remained mostly the same. This gave the company Pounds 750,000 in extra revenue. Goldshield increased the price of one pack of drugs from Pounds 6.94 to Pounds 20.82 at around the same time'. 
 
  
The SFO later (27th April 2006) reported<ref>Serious Fraud Office [http://www.sfo.gov.uk/news/prout/pr_466.asp?id=466 Fraud on the National Health Service. Appearance at Magistrates Court] Accessed 4th April 2008</ref> that nine persons appeared in court on 'charges of conspiracy to defraud the National Health Service' along with 5 Companies (including Norton Healthcare) 'on conspiracy to defraud charges'. The 'persons' were [[Jonathan Raymond Close]] and [[Nicholas Mark Foster]] (both formerly of Norton Healthcare Limited)  alongside [[Denis William O’Neill]] and [[John Stephen Clark]] (of [[Kent Pharmaceuticals Limited]]), [[Luma Auchi]] (formerly of [[Regent-GM Laboratories]]), [[Michael John Frederick Sparrow]] (formerly of [[Generics (UK) Limited]]), [[Anil Kumar Sharma]] (formerly of [[Ranbaxy (UK) Limited]]), [[Ajit Ramanlal Patel]] and [[Kirti Vinubhai Patel]] (of [[Goldshield Group Plc]]). On the 9th April 2006 (shortly before the companies appearance in court), <i>Medical News Today</i> reported <ref><i>Medical News Today</i> [http://www.medicalnewstoday.com/articles/41266.php Norton Settles NHS Claim For 'Price Fixing', UK] 9th April 2006. Accessed 4th April 2008</ref> that The Department of Health and Norton Healthcare Ltd and Norton Pharmaceuticals Ltd had 'jointly announce settlement of the claims'. Norton did not admit any liability in relation to the charges but did pay compensation to the NHS for the amount of £13.5 million. In the report, Jim Gee (Director of Counter Fraud Services for the Department of Health) stated that "Norton is the third of the defendant companies to have recognised the strength of the claim made by the NHS..." The £13.5million was paid out to the NHS in England and Wales<ref>BBC News [http://news.bbc.co.uk/2/hi/uk_news/scotland/7373904.stm Drug group backs £2.8m settlement]. 30th April 2008. Accessed 30th April 2008</ref>.  
+
It appears that the case is to go to trial in September 2008<ref>Livingstone, T. & Shipton, M. (2008) 'I made a mistake but it was an innocent mistake'. The <i> Western Mail</i>. 25th January 2008.</ref> in what <i>The Guardian</i> describes as 'the biggest prosecution for alleged fraud ever launched in the United Kingdom'<ref>Monbiot, G. (2008) [http://www.guardian.co.uk/commentisfree/story/0,,2252536,00.html 'This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party  to the super-rich']. 5th February 2008</ref>. Norton has, without any admission of liability, compensation 13.5million to the NHS in England and Wales<ref>BBC News [http://news.bbc.co.uk/2/hi/uk_news/scotland/7373904.stm Drug group backs £2.8m settlement]. 30th April 2008. Accessed 30th April 2008</ref>, and £2.8 million in Scotland<ref>BBC News [http://news.bbc.co.uk/2/hi/uk_news/scotland/7373904.stm Drug group backs £2.8m settlement]. 30th April 2008. Accessed 30th April 2008</ref>.  
  
It appears that the case was due to go to trial in September 2008<ref>Livingstone, T. & Shipton, M. (2008) 'I made a mistake but it was an innocent mistake'. The <i> Western Mail</i>. 25th January 2008.</ref> in what <i>The Guardian</i> describes as 'the biggest prosecution for alleged fraud ever launched in the United Kingdom'<ref>Monbiot, G. (2008) [http://www.guardian.co.uk/commentisfree/story/0,,2252536,00.html 'This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party  to the super-rich']. 5th February 2008</ref>. However, in April 2008, it was announced that 'A drugs group has agreed a £2.8m settlement with the Scottish Government and health boards over the alleged price fixing'. Norton is reported to have agreed to the £2.8 million payment as a 'full and final settlement' and without admiting any liability<ref>BBC News [http://news.bbc.co.uk/2/hi/uk_news/scotland/7373904.stm Drug group backs £2.8m settlement]. 30th April 2008. Accessed 30th April 2008</ref>. The report also mentions that the [[Goldshield Group]] paid £750,000 after agreeing a similar deal in March 2008.
+
See [[Isaac Kaye business activities]] for more details.
 
 
==Subsidiaries and Brands==
 
The IVAX Corporation's other subsidiaries include [[Zenith Goldline Pharmaceuticals]], [[Goldcaps Inc.]], [[Diamedix Corporation]], [[Baker Norton Pharmaceuticals]], [[Immunovision]] and [[DVM Pharmaceuticals]] (all based in Florida), [[Gelkaps GmbH]] (Germany), [[Elvetium S.A.]] (Argentina), [[Baker Norton Asia]] (Hong Kong), [[Delta Biologicals]] (Italy) and [[Galena a.s. Opava]] (Czech Republic).
 
 
 
In 2002, IVAX is reported to have 'recently' aquired Puerto Rican based company [[ChemSource]] (Which develops, manufactures and sells active pharmaceutical ingredients for a variety of pharmaceuticals products)<ref><i>Plunkett's Health Care Industry Almanac</i> (2002) 'Individual Data Profiles On Each Of THE HEALTH CARE 500'. January 2004</ref>
 
 
 
In 2002, it is also reported that IVAX 'established a company in France by acquiring [[Merck]] Sharp & Dohme's portfolio of generic products there<ref><i>FD (Fair Disclosure) Wire</i> 'Q1 2003 Ivax Earnings Conference Call - Final'. 24th April 2003</ref>. IVAX also 'entered into a collaboration with [[Novartis]]' in order to market IVAX's Airmax multidose dry powder inhaler<ref><i>FD (Fair Disclosure) Wire</i> 'Q1 2003 Ivax Earnings Conference Call - Final'. 24th April 2003</ref>.
 
 
 
In 2002, <i>Plunkett's Health Care Industry Almanac</i> describes IVAX's 'Brands/Divisions/Affiliates' as<ref><i>Plunkett's Health Care Industry Almanac</i> (2002) 'Individual Data Profiles On Each Of THE HEALTH CARE 500'. January 2004</ref>...
 
* [[Airmax]]
 
* [[Easi-Breathe]]
 
* [[Paxene]]
 
* [[Paxoral]]
 
* [[TP-38]]
 
* [[ChemSource Corporation]].
 
* [[IVAX Pharmaceuticals Inc.]]
 
 
 
==Affiliations==
 
*[[Labour Friends of Israel]]
 
 
 
* [[Hebrew University of Jerusalem]]<ref>Hebrew University of Jerusalem [ftp://ard.huji.ac.il/pub/kaye2006.pdf Isaac Kaye] Accessed 9th April 2008</ref> - Patron of Applied Research. At the university, Kaye also acted as Chair for the University's 'South African Friends' organization and was a member of the Board of Governors. Kaye also established the [[Isaac and Myrna Kaye Chair in Immunopharmacology]] at the [[Hebrew University of Jerusalem]]'s School of Pharmacy in 1995<ref>Hebrew University of Jerusalem [ftp://ard.huji.ac.il/pub/kaye2006.pdf Isaac Kaye] Accessed 9th April 2008</ref>. In 1994 the [[Kaye Innovation Award]] was created<ref>Siegel, J. (2007) 'HU researchers cited for work on obesity brain surgery Alzheimer's'. <i>The Jerusalem Post</i>. 6th June 2007</ref>.
 
 
 
* [[Israel Healthcare Ventures]] (IHCV)<ref>Hebrew University of Jerusalem [ftp://ard.huji.ac.il/pub/kaye2006.pdf Isaac Kaye] Accessed 9th April 2008</ref> - Kaye is a founding member of the IHCV which was created in 2001. The IHCV describes itself as 'a venture capital fund dedicated to providing venture capital investment to Israeli life sciences companies'<ref>Israel Healthcare Ventures [http://www.ihcv.co.il/ Home Page] Accessed 9th April 2008</ref>.
 
 
 
* [[Isaac Kaye Family Trust]] - was set up in 1988 (it is reported that this was mainly for his children). In 2000 the Trust owned more than £50million shares in IVAX<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000.</ref>.
 
According to the <i>Sunday Tribune</i> (Ireland), Ivax's second largest shareholder is reported to be [[Azure Ltd]]. Azure Ltd held a $136m stake in IVAX in April 2000. This was held on behalf of the [[Charter Trust Company]], which is an offshore company that represents the [[Kaye Family Trust]]<ref>McGee, H. (2002) 'Alleged fraud firm linked to millionaire with Irish passport'. <i>Sunday Tribune</i> (Ireland). 14th April 2002</ref> .
 
 
 
==Takeovers==
 
In 2007, The <i>Star</i> in South Africa made reference to an offer made by Issac Kaye to [[Natie Kirsh]] (the controlling shareholder of [[Greatermans]] and uncle of [[Primedia]] chief executive [[William Kirsh]]) in an article which included a piece about takeover bids which are 'directed only at the holders of voting shares and not at the holders of non-voting shares'. The offer was made by Kaye and [[Dusty Miller]] to shareholder Kirsh only. It appears to have then been overturned by the High Court<ref>Crotty, A. (2007) 'Fluctuating iTraxx index puts Primedia buyout on the edge'. <i>The Star</i>. 13th august 2007</ref>.
 
 
 
The <i>Express</i> in 2000 made reference to Kaye and Miller's [[Greatermans]] activities. Little details are given, however they do report that (in relation to the Greatermans sale)...
 
:'The buyers cut the purchase price and later sued, claiming profits had been overstated and liabilities understated. There was also a police investigation but no prosecution'<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000</ref>..
 
  
 
==Tax Loophole==
 
==Tax Loophole==
Line 116: Line 79:
  
 
==Other news==
 
==Other news==
In 2001, Kaye met The Duke of Kent at Norton Healthcare's headquarters at London's Royal Docks<ref>Chemist & Druggist. 'Norton gets a right royal touch'. 17th February 2001</ref>
+
In 2001, Kaye met The Duke of Kent at Norton Healthcare's headquarters at London's Royal Docks<ref>Chemist & Druggist. 'Norton gets a right royal touch'. 17th February 2001</ref>.
 
 
  
 +
==Affiliations==
 +
*[[Labour Friends of Israel]] - Kaye is reported to be a donor to the LFI. He is also reported to have 'backed' the [[Community Security Trust]], [[UJIA]] and 'other Jewish and pro-Israel organisations'<ref>Josephs, B. (2008) 'Labour donor calls Hain row ‘rubbish’'. The <i>Jewish Chronicle</i>. 17th January 2008</ref>.
 +
* Kaye is on the board of [[Bicom]] (Britain-Israel Communications and Research Centre)<ref>Josephs, B. (2008) 'Labour donor calls Hain row ‘rubbish’'. The <i>Jewish Chronicle</i>. 17th January 2008</ref>.
 +
* [[Hebrew University of Jerusalem]]<ref>Hebrew University of Jerusalem [ftp://ard.huji.ac.il/pub/kaye2006.pdf Isaac Kaye] Accessed 9th April 2008</ref> - Patron of Applied Research. At the university, Kaye also acted as Chair for the University's 'South African Friends' organization and was a member of the Board of Governors. Kaye also established the [[Isaac and Myrna Kaye Chair in Immunopharmacology]] at the [[Hebrew University of Jerusalem]]'s School of Pharmacy in 1995<ref>Hebrew University of Jerusalem [ftp://ard.huji.ac.il/pub/kaye2006.pdf Isaac Kaye] Accessed 9th April 2008</ref>. In 1994 the [[Kaye Innovation Award]] was created<ref>Siegel, J. (2007) 'HU researchers cited for work on obesity brain surgery Alzheimer's'. <i>The Jerusalem Post</i>. 6th June 2007</ref>.
 +
* [[Israel Healthcare Ventures]] (IHCV)<ref>Hebrew University of Jerusalem [ftp://ard.huji.ac.il/pub/kaye2006.pdf Isaac Kaye] Accessed 9th April 2008</ref> - Kaye is a founding member of the IHCV which was created in 2001. The IHCV describes itself as 'a venture capital fund dedicated to providing venture capital investment to Israeli life sciences companies'<ref>Israel Healthcare Ventures [http://www.ihcv.co.il/ Home Page] Accessed 9th April 2008</ref>.
 +
* [[Isaac Kaye Family Trust]] - was set up in 1988 (it is reported that this was mainly for his children). In 2000 the Trust owned more than £50million shares in IVAX<ref><i>The Express</i> HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000.</ref>. According to the <i>Sunday Tribune</i> (Ireland), Ivax's second largest shareholder is reported to be [[Azure Ltd]]. Azure Ltd held a $136m stake in IVAX in April 2000. This was held on behalf of the [[Charter Trust Company]], which is an offshore company that represents the [[Kaye Family Trust]]<ref>McGee, H. (2002) 'Alleged fraud firm linked to millionaire with Irish passport'. <i>Sunday Tribune</i> (Ireland). 14th April 2002</ref> .
 +
* [[Galena]] pharmaceutical company - Kaye is reported as a member of the Board in 1999<ref><i>CTK Business News Wire</i> 'GALENA AGM DECIDES NOT TO PAY DIVIDENDS FOR 1998'. 23rd June 1999</ref>
  
 
==Notes==
 
==Notes==
 
<references/>
 
<references/>
[[Category: Israel Lobby]]
+
[[Category: Israel Lobby|Kaye, Isaac]][[Category:BICOM|Kaye, Isaac]][[Category:South Africa|Kaye, Isaac]][[Category:Labour Party Donors|Kaye, Isaac]]

Latest revision as of 13:32, 12 February 2014

Background

Isaac Kaye was born in South Africa and came to Britain in 1985.[1] He is an Irish citizen[1] with non-domicile status and has been a registered voter since 1991.[2] He lives in a luxury apartment in Grosvenor Square, Mayfair, London[3] [4] (since 1990[5]). In 2002, he is described by the Guardian as being a 'seventysomething multi-millionaire' who 'moved to Britain in 1985, took Irish citizenship and salted away a small fortune in a Channel Islands trust fund from a US business deal'[6]. According to The Express, Kaye moved to Britain shortly after his partner Bernard Miller who arrived in 1982[7]. In 2008, Kaye was reported to be 78 years of age.[8]

Kaye has a long history of involvement in drug companies. In South Africa in the 1970s his companies were CE Electro-Medical and Continental Ethicals[9]. His first company in Britain was Harris Pharmaceuticals[10], which was later sold to the IVAX Corporation. Kaye's involvement continued with IVAX, where he held several senior positions, until his retirement in 2003[11]. He was also the second largest shareholder of IVAX (as reported in 1998), with a stake worth $136 million[12].

Kaye's career has been riddled with scandal. From as far back as the 1980's 'gifts for influence' has been a recurrent theme[13](In both South Africa and Britain). His company also stands accused of price fixing through a cartel of drugs companies which is estimated to have defrauded the NHS of an estimated £400million[14] and violation of workers rights have also featured through the barring of union activity (as unions are "not in line with company philosophy"![15]). See Isaac Kaye business activities for more details.

South Africa's Apartheid regime

Kaye was a supporter of the South Africa's Apartheid regime[16], the Afrikaner-led National party[17]. Such claims are reported to be contested by Kaye’s lawyer. However, Dave Osler states[18], 'it was admitted that Kaye did back one National Party candidate on grounds of childhood friendship' (John Erasmus[19]). Kaye is reported to have met Erasmus whilst he was in Rhodesia (now known as Zimbabwe), however little else is known about Kaye's time there[20]. According to The Express, 'Erasmus served in the Rhodesian security forces after the whites-only government of Ian Smith declared UDI in 1965'.

Osler reports[21] that Kaye also offered National Party minister for health Dr Lapa Munnik the 'use of cars to transport supporters to the polls at a crucial 1979 by-election'. Munnik is described as 'an apartheid stalwart who threatened to close Catholic schools if they dared to admit non-white pupils'. Kaye also served on the board of South African Druggists (1977-1982) whose 'executives were also seconded to assist the election efforts of the Afrikaaner-led National Party'. According to Peter Goldberg ('Kaye's right-hand man') Kaye had personally approved every gift or payment given, yet Kaye is reported to have 'no recollection' of supporting Munnik or Bornman (another National Party candidate who received support by Kaye). Kaye's laywer, Warren Roiter, states that the only South African political party Kaye had "financially aided" was the opposition Progressive Party and that Kaye 'is a warm supporter of the peaceful transition to a multi-racial democracy in that country'. yet claims to the contrary continues to mount[22].

An award-winning investigation by the South African journalist Martin Welz, also alleges that Kaye seconded one of his company's executives to campaign for another candidate, Gerrit Bornman[23]. Bornman is reported to have told the Express that Kaye had been a "substantial" backer of the National party[24].

In The Express[25] in 2000, Welz is quoted as saying that Kaye 'lived in the best suburbs, dined in the best restaurants and socialised in the best circles'. The Express article continues by reporting that Kaye 'had a large and beautiful house in the upmarket Sandton suburb of Johannesburg. It was obscured behind a large garden at the end of a long, gated drive'. Kaye is reported to have been careful to avoid personal publicity whilst in South Africa. Even in 2000, IVAX's company documents make no reference to his previous business activities in connection to South Africa[26].

Kaye appears to have moved from Rhodesia to South Africa in the 1970's with his partner Bernard 'Dusty' Miller. They are reported to have 'built up their Alumina Development group into a major supplier to hospitals' before selling it for £8.5million to South African Druggists in 1977[27]. The Chemist and Druggist report that Kaye undertook his initial training as a pharmacist in the Rhodesian township of Bulawayo[28]

Kaye the 'veteran supporter of Israel'

The Jewish Chronicle describes Kaye as 'a veteran supporter of Israel'[29].

In 2006, a Guardian report by Jerusalem correspondent Chris McGreal drew parallels between Israel and apartheid-era South Africa stating that “as in white South Africa,” there was in Israel “a world of discrimination and oppression that most Israelis choose not to see.” 'There were few places where governments constructed “a web of nationality and residency laws designed for use by one sector of the population against another. Apartheid South Africa was one. Israel was another.”' Israeli Ambassador Zvi Heifetz then convened a 'gathering of leaders' to discuss a response to the article. This included Chief Rabbi Sir Jonathan Sacks, Lord Janner, Bicom chair Poju Zabludowicz, Isaac Kaye, Gerald Ronson and Henry Grunwald. Ronson and Grunwald then met with the papers editor, Alan Rusbridger where they 'conveyed communal anger' over the article. Following this, Benjamin Pogrund (former deputy editor of the Daily Mail) published a rebuttal[30].

Labour Friends of Israel

In 2002, Isaac Kaye and David Garrard sponsored the Labour Friends of Israel Annual Lunch. Amongst those in attendence were Jack Straw and Israeli Ambassador, Zvi Shtauber. In his speech at the event, Straw thanked Michael Levy for his work on behalf of the Jewish community in Britain[31].

An early ‘key backer’ of BICOM

Isaac Kaye is a South African born multi-millionaire who came to Britain in 1985. Like David Green, he was reported to be a ‘key backer’ of BICOM shortly after its establishment in 2002[32] and is reported to be one of the organisation’s board members.[33]

Kaye made his millions from drugs companies[34] and has been associated with a number of political scandals. In South Africa during the early 1980s an official ‘gifts for influence’ inquiry found that he had ‘no scruples about applying dishonest or unethical methods’,[35] although Kaye denied ‘any impropriety, saying the giving of presents was not an inducement but an appreciation’. In the UK Kaye became a major donor to New Labour in the late 1990s and in 2008 funded Peter Hain’s bid for the deputy leadership via a think tank that had ‘never’ held a meeting.[36][37] He is a donor to Labour Friends of Israel and the United Jewish Israel Appeal as well as BICOM[38] and has business interests in Israel where he co-founded the venture capital firm Israel Healthcare Ventures (IHCV).[39] Like Zabludowicz, Kaye has also funded the Herzliya Conference at the Interdisciplinary Center, Israel’s only private university.[40]

Financing Labour

Kaye spent £5,000 in 1997 and 1998 on tickets for Labour gala dinners and donated £100,000 to Labour in 1999[41]. He also gave £10,000 to the London mayoral campaign of Frank Dobson, the former Labour health secretary. According to The Guardian, the Labour party has declined to comment on its relationship with Kaye. He gave the Labour Party more than £5,000 in 2000.[42]. The Express highlights the 'hypocrisy at the heart of New Labour', by reporting that Nelson Mandela addressed the Labour Party conference in 2000, a hypocritical move after receiving substantial funding from Kaye since 1997. According to the Express 'To accept even a penny from such a figure reveals a shocking lack of principle among the party hierarchy'[43].

In 2008, The Independent reports[44] that Kaye donated nearly £15,000 to Peter Hain through the Progressive Policies Forum (PPF) think tank (which was set up three months after the launch of Mr Hain's campaign) to finance Hain's failed deputy leadership campaign. The Progressive Policies Forum was set up by John Underwood (former director of communications for the Labour Party, founder of Clear Communications and Business Development Director of Freshwater UK[45]) in 2006 and 'channelled over £50,000 in donations and loans to Peter Hain's deputy leadership campaign'[46]. The report continues by stating that the PPF 'has no staff, no board, no website and no published research'. Hain appeared as a guest of honour at Freshwater's table at a Labour fund-raising dinner and publicly praised Freshwater as a "modern, dynamic company" that he wanted to see go "from strength to strength"[47]. He is reported to have "absolutely no regrets" over his links to the company.

Hain is reported to have been an anti-apartheid campaigner, yet Kaye's support of the pro-apartheid National Party did not stop him from taking the money[48]. This leads us on to a crucial question when it comes to the financing of political parties, a question of whether morals and ideals can be swept aside in the process of securing finances. According to Monbiot, 'money trumps principle every time'.[49] As Monbiot states:

'You enter politics with the highest ideals and end up grovelling to multi-millionaires. Campaign finance is not the only reason for the corruption of leftwing political parties. But any system without a cap on individual donations encourages the mass abandonment of political programmes. You need to spend much less time and effort and money to secure thousands of pounds from a rich man than to shake it out of the piggybanks of hundreds of new members. Who can blame you if you adjust your programme to please the millionaires?'[50]

In 2006 and 2007, 27% of Labour's money came from individual donations of more than £100,000. As Monbiot describes, 'Aside from the largesse of Lord Sainsbury and Lakshmi Mittal, almost all of this is City money, much of it from men who run private equity companies. To what extent this influences Labour's failure to tax the super-rich, we will never know - which is, of course, the problem'[51].

Kaye is also reported to have 'paid for new tennis courts at Chequers'[52]

Kaye, the 'Smooth Talker'

Peter Goldberg, who is reported to have been Kaye's 'right-hand man', describes Kaye as having "pizzazz, fantastic gut feel for a gap or a deal. He's a people's man, a smooth talker. He knew everyone in Pretoria. If he needed to get to know someone he got to know them, even if he had to go through a ten foot wall." [53].

Gifts for influence

The Guardian reported that[54]...

'Kaye was caught up in a "gifts for influence" scandal in South Africa during the early 1980s amid claims that doctors were being rewarded with everything from cars and TVs to swimming pool equipment and chandeliers for prescribing drugs made by his then firm. He denied any impropriety, saying the giving of presents was not an inducement but an appreciation'.

However the official inquiry into the scandal found that Kaye had "no scruples about applying dishonest or unethical methods"[55]. As his former employees claim, such 'gifts' were 'an essential part of an aggressive campaign "to win friends in high places"'[56]. It was not only doctors who received 'gifts' but also academics who sat on the South African government's advisory panels, the head of the Medical Research Council and the minister of health[57].

This behaviour continued when Kaye came to Britain, as the Express report, 'Kaye's success in Britain, the row over Norton's sales tactics and his support of the government in power mirrors exactly what happened in South Africa'[58].

Norton Healthcare (Part of IVAX) has been condemned by the Association of the British Pharmaceutical Industry for offering "unnacceptable inducements"[59]. Also the awarding of a £990,000 grant to Norton to set up a new plant in London (to boost employment and promote investment) one week after it was revealed that Norton was to cease manufacturing in the UK and relocate to Ireland (cutting 500 jobs in the process) certainly raises some questions![60]

See Isaac Kaye business activities for more details.

NHS £400m rip-off?

In 2002 Kaye's company Norton Healthcare Ltd (a subsidiary of IVAX Corporation) was 'raided by police investigating an alleged £400m rip-off of the NHS' and was 'one of six firms suspected of being involved in a price fixing cartel to push up prices charged to the NHS'[61]. After initial enquiries carried out by the Counter Fraud Directorate of the Department of Health, The Serious Fraud Office (SFO) began an investigation 'into a suspected conspiracy to defraud the NHS in relation to prices charged by suppliers' between 1996 and 2000[62]. One of the antibiotics (called amoxycillin) is described as 'one of Britain's most commonly prescribed drugs' which the companies allegedly conspired to raise the price of, 'by up to 260 per cent'[63].

Norton Healthcare is reported to be 'the biggest supplier of generic drugs to the NHS'[64]. Frank Dobson, whom Kaye donated £10,000 to for his London mayoral campaign, was behind a call for the NHS to switch from brand named drugs to generic ones. This was intended to save the NHS money, yet phenomenal price hikes meant huge profits for Norton instead[65]. The alleged conspiracy of 260% increases appears almost modest compared to the example of Norton Healthcare Thyroxine tablets which rose from £6.84 a pack in 1998 to £44.89 in 1999![66]

It is alleged that senior representatives of the firms met secretly to negotiate a sophisticated scheme to manipulate and control the market by raising prices and restricting supply, an arrangement designed to reduce competition in the UK which included lying about supplies to force prices up[67][68][69].

It appears that the case is to go to trial in September 2008[70] in what The Guardian describes as 'the biggest prosecution for alleged fraud ever launched in the United Kingdom'[71]. Norton has, without any admission of liability, compensation 13.5million to the NHS in England and Wales[72], and £2.8 million in Scotland[73].

See Isaac Kaye business activities for more details.

Tax Loophole

In an article in 2002 on the subject of how 'Rich people are costing Britain millions in lost tax by not registering their houses in their own names', the Guardian reports that Kayes home in Grosvenor Square was owned by a company which in turn was owned by a 'family trust'[74]. The article claims that through the exploitation of legal loopholes 'wealthy individuals... appear to be enjoying the country's choicest property virtually tax-free'. The article also mentions Margaret Thatcher, Mohamed Al Fayed, David Potter, Tony Tabatznik, Lakshmi Mittal, Uri David, Rupert Allason, Wafic Said, Prince Bandar and Christopher Ondaatje as others who are not the registered owners of their homes who may benefit from such a loophole.

The company which owns Kaye's home is reported to be Woodworth Investment Ltd. Kaye has 'Non-domiciled' status in the UK and it is estimated that he stands to potentially save stamp duty in the region of £60,000 and inheritance tax of at least £500,000[75]

Other news

In 2001, Kaye met The Duke of Kent at Norton Healthcare's headquarters at London's Royal Docks[76].

Affiliations

Notes

  1. 1.0 1.1 Maguire K (2002) Profile:Isaac Kaye The Guardian 13th April 2002. Accessed 4th April 2008
  2. The Express HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000.
  3. Evans, R & Hencke, D. (2002) 'Tax loopholes on homes benefit the rich and cost UK millions'. The Guardian 25th May 2002. Accessed 22nd May 2008
  4. Maguire K (2002) Profile:Isaac Kaye The Guardian 13th April 2002. Accessed 4th April 2008
  5. The Express HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000.
  6. Maguire K (2002) Profile:Isaac Kaye The Guardian 13th April 2002. Accessed 4th April 2008
  7. The Express HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000.
  8. Grimston, J., Woolf, M. & Gadher, D. (2008) 'THE DONORS: FROM DIAMOND BROKER TO DEMOLITION MAN'. The Sunday Times 13th January 2008
  9. Gillard, M. (2000) 'APARTHEID SUPPORTER WHO IS A GBP 100,000 BACKER OF LABOUR'. The Express 28th September 2000
  10. The Express HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000.
  11. Chemist & Druggist 'It's goodbye from him'. 28th June 2003
  12. McGee, H. (2002) 'Alleged fraud firm linked to millionaire with Irish passport'. Sunday Tribune (Ireland). 14th April 2002
  13. Maguire K (2002) Profile:Isaac Kaye The Guardian 13th April 2002. Accessed 4th April 2008
  14. Serious Fraud Office Suspected fraud on the National Health Service Press release 10th April 2002. Accessed 4th April 2008
  15. Cited in Osler, D. (2006) New Labour and the generic medicine scam Accessed 4th April 2008, Original source:FRANCIS WHEEN, WHEEN'S WORLD: DOBBO'S MEDICINE MAN: FRANK'S PHARMACEUTICAL FRIENDS The Guardian April 26, 2000
  16. Michael Gillard, 28th September 2000. Apartheid Supporter Who Is a £100,000 Backer of Labour. The Daily Express
  17. Maguire K (2002) Profile:Isaac Kaye The Guardian 13th April 2002. Accessed 4th April 2008
  18. Osler, D. (2006) New Labour and the generic medicine scam Accessed 4th April 2008
  19. McSmith, A. (2002) Fraud squad raids firm of Labour Party donor The Telegraph13th April 2002. Accessed 4th April 2008
  20. The Express HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000
  21. Osler, D. (2006) New Labour and the generic medicine scam Accessed 4th April 2008
  22. Gillard, M. (2000) 'APARTHEID SUPPORTER WHO IS A GBP 100,000 BACKER OF LABOUR'. The Express. 28th september 2000
  23. Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party  to the super-rich'. The Guardian. 5th February 2008
  24. ibid
  25. The Express HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000
  26. The Express HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000
  27. The Express HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000
  28. Chemist and Druggist 'It's goodbye from him' June 28th 2003
  29. Rocker, S. (2006) 'Bicom: the rich and powerful'. The Jewish Chronicle. 22nd June 2006
  30. Josephs, B. (2006) Complaint to Guardian over apartheid analogy'. The Jewish Chronicle. 23rd February 2006
  31. Straw, J. (2002) Speech by Foreign Secretary Jack Straw at the Labour Friends of Israel Annual Lunch 13th March 2002. Accessed 2nd July 2008
  32. Bernard Josephs, ‘Sacks: it was a mistake to speak to Guardian’, Jewish Chronicle, 6 September 2002, p.3.
  33. Bernard Josephs, ‘Labour donor calls Hain row “rubbish”’, TheJC.com, 17 January 2008.
  34. Institute for Medical Research Israel-Canada, 2012 Kaye Innovation Award Recipients Include Two IMRIC Researchers
  35. George Monbiot, ‘This scandal makes it clear: for Labour, money trumps principle every time’, Guardian, 5 February 2008.
  36. Patrick Wintour and David Hencke,‘Questions over “thinktank” pile pressure on Hain Body that paid thousands to minister’s campaign ‘has never held meeting’, The Guardian, 12 January 2008.
  37. Jamie Doward and Ben Quinn, [http://www.theguardian.com/politics/2008/jan/13/uk.partyfunding ‘”Think tank” that fuelled Hain’s bid’, The Observer, Sunday 13 January 2008.
  38. Bernard Josephs, ‘Labour donor calls Hain row “rubbish”’, TheJC.com, 17 January 2008.
  39. Strategic Partners, Trevi Health Ventures, accessed 7 February 2014.
  40. Acknowledgements, herzliyaconference.org, accessed 7 February 2014.
  41. Maguire K (2002) Profile:Isaac Kaye The Guardian 13th April 2002. Accessed 4th April 2008
  42. Ref needed
  43. The Express 'THE EXPRESS LEADER'. 28th September 2000
  44. Brady, B. (2008) 'I've done nothing wrong,' Peter Hain insists, as he battles for his political lifeThe Independent 13th January 2008. Accessed 4th April 2008
  45. Freshwater UK Directors Accessed 4th April2008
  46. Brady, B. (2008) 'I've done nothing wrong,' Peter Hain insists, as he battles for his political lifeThe Independent 13th January 2008. Accessed 4th April 2008
  47. Pierce, A. (2008) 'Why he fell Spending spree that sent Hain's career into a tailspin' The Daily Telegraph. 25th January 2008.
  48. Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party  to the super-rich' The Guardian 5th February 2008
  49. Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party  to the super-rich' The Guardian 5th February 2008
  50. Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party  to the super-rich' The Guardian 5th February 2008
  51. Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party  to the super-rich' The Guardian 5th February 2008
  52. The Evening Standard (London). 'Drugs boss in NHS fraud inquiry is big Labour donor; Londoner's Diary'. 12th April 2002.
  53. Gillard, M. (2000) 'APARTHEID SUPPORTER WHO IS A GBP 100,000 BACKER OF LABOUR'. The Express. 28th september 2000
  54. Maguire K (2002) Profile:Isaac Kaye The Guardian 13th April 2002. Accessed 4th April 2008
  55. Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party  to the super-rich'. 5th February 2008.
  56. Gillard, M. (2000) 'APARTHEID SUPPORTER WHO IS A GBP 100,000 BACKER OF LABOUR'. The Express 28th September 2000
  57. Monbiot, G. (2008) 'Comment & Debate: This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party  to the super-rich'. 5th February 2008.
  58. Gillard, M. (2000) 'APARTHEID SUPPORTER WHO IS A GBP 100,000 BACKER OF LABOUR'. The Express 28th September 2000
  59. Death of the Noble Idea Posted February 5, 2008 Big money trumps everything in politics, even the most dearly-held beliefs By George Monbiot. Published in the Guardian 5th February 2008; FRANCIS WHEEN, WHEEN'S WORLD: DOBBO'S MEDICINE MAN: FRANK'S PHARMACEUTICAL FRIENDS The Guardian April 26, 2000
  60. McGee, H. (2002) 'Alleged fraud firm linked to millionaire with Irish passport'. Sunday Tribune (Ireland). 14th April 2002
  61. Maguire K (2002) Profile:Isaac Kaye The Guardian 13th April 2002. Accessed 4th April 2008
  62. Serious Fraud Office Suspected fraud on the National Health Service Press release 10th April 2002. Accessed 4th April 2008
  63. The Times 'The week that was Britain'. 27th December 2003
  64. Livingstone, T. (2008) I find it hard to see how he can continue if he is the sort of man who forgets about pounds 100,000'. The Western Mail. 12th January 2008
  65. Osler, D. (2006) New Labour and the generic medicine scam Accessed 4th April 2008
  66. Osler, D. (2006) New Labour and the generic medicine scam Accessed 4th April 2008
  67. NEWLING, D. (2003) Drug firms 'in price-fix scam'. The Daily Mail. 22nd december 2003
  68. Burleigh, J. (2003) 'NHS TO SUE SEVEN DRUG FIRMS FOR FIXING PRICE' OF MEDICINES'. The Independent. 22nd December 2003
  69. Calvert, J. (2002) 'Government sues drug giants for 'cheating' NHS'. Sunday Times. 22nd December 2002
  70. Livingstone, T. & Shipton, M. (2008) 'I made a mistake but it was an innocent mistake'. The Western Mail. 25th January 2008.
  71. Monbiot, G. (2008) 'This scandal makes it clear: for Labour, money trumps principle every time: Peter Hain's choice of donor defaces his reputation and reveals the surrender of his party  to the super-rich'. 5th February 2008
  72. BBC News Drug group backs £2.8m settlement. 30th April 2008. Accessed 30th April 2008
  73. BBC News Drug group backs £2.8m settlement. 30th April 2008. Accessed 30th April 2008
  74. Evans, R & Hencke, D. (2002) 'Tax loopholes on homes benefit the rich and cost UK millions'. The Guardian 25th May 2002. Accessed 22nd May 2008
  75. The Guardian 'Special Investigation: Tax loopholes on homes benefit the rich and cost UK millions: Choice homes, virtually tax free'. 25th May 2002
  76. Chemist & Druggist. 'Norton gets a right royal touch'. 17th February 2001
  77. Josephs, B. (2008) 'Labour donor calls Hain row ‘rubbish’'. The Jewish Chronicle. 17th January 2008
  78. Josephs, B. (2008) 'Labour donor calls Hain row ‘rubbish’'. The Jewish Chronicle. 17th January 2008
  79. Hebrew University of Jerusalem Isaac Kaye Accessed 9th April 2008
  80. Hebrew University of Jerusalem Isaac Kaye Accessed 9th April 2008
  81. Siegel, J. (2007) 'HU researchers cited for work on obesity brain surgery Alzheimer's'. The Jerusalem Post. 6th June 2007
  82. Hebrew University of Jerusalem Isaac Kaye Accessed 9th April 2008
  83. Israel Healthcare Ventures Home Page Accessed 9th April 2008
  84. The Express HE STAYS QUIET ABOUT HIS STRIFE AND TIMES IN SOUTH AFRICA. 28th September 2000.
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