A former compliance officer in the City has won more than £500,000 in compensation after he was fired for whistleblowing.
Bharat Bhagani worked at Goldenway Global Investments and was asked to secure a work visa for an employee who later was alleged to be a Chinese spy.
Bhagani successfully took Hong Kong-headquartered Goldenway to tribunal in 2022 and his compensation has just been established in a remedy hearing.
He told the tribunal that he had disclosed to the Financial Conduct Authority, the City regulator, that there had been two unauthorised appointments of Hong Kong residents to Companies House.
He made further protected disclosures including allegations of money laundering, unauthorised persons acting as directors and fraudulent intercompany loans.
Bhagani told directors at the company that he had asked the regulators to look into the issues and to “stop all communication with London staff”, because this would prejudice an investigation.
He added: “I have called in the regulators and I am certainly not stepping down. I represent the FCA.” The company was subject to FCA restrictions until it was shut down in 2022.
After raising the alarm with the regulator, officials told him the worker he had been asked to secure a visa for was a “Chinese espionage agent” who had been deported, the tribunal heard.
In June 2022, Goldenway sent Bhagani a warning letter because he had not been “cooperative in assisting the company to enrol appropriate staff”. It added that there were “concerns on [his] recent performance” and that the company was “very disappointed”.
Any further breach could lead to suspension or termination of employment, it added.
His employment was terminated in July 2022 with a letter claiming Bhagani had “acted to obstruct our ability to carry out effectively the day-to-day operations of the company”.
The tribunal found that while Goldenway could have seen Bhagani’s conduct as “obstructive”, its eventual decision to dismiss him was unfair. There was no investigation or disciplinary procedure before his departure, meaning the company had breached contract.
After his dismissal, Bhaghani lost out on a job offer because Goldenway provided a reference claiming he had been sacked for gross misconduct, even though the allegations had not been proven.
In judgment, the tribunal concluded that Bhagani had been unfairly dismissed for sharing his concerns with the FCA.
He was awarded a total of £564,672.46 comprising loss of past and future earnings, unlawful deduction from wages, and an ACAS uplift for his loss of statutory rights.
At the time of the initial tribunal decision, the Chinese embassy denied accusations of espionage: “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.”
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