Tory donor suggests ‘no room for the Indians’ in latest remarks revealed in racism row

New allegations against the business tycoon threaten to engulf the Conservative party

A racism row involving the Conservative party’s top donor has intensified following revelations of further resurfaced comments from Frank Hester.

Mr Hester - the chief executive of The Phoenix Partnership (TPP), which has won more than £400m in government and NHS contracts - is alleged to have called a meeting in 2019 of his “foreign” workers to address allegations of racism.

The business tycoon asked if there was “no room for Indians, then?” as he addressed staff members on a crowded balcony at a meeting in the company’s headquarters, according to The Guardian.

He is then reported to have said: “Climb on the roof, like on the roof of the train there maybe.”

Frank Hester donated £10m to the Conservative party in 2023 (TPP/Youtube)

Mr Hester also referenced a forthcoming work trip, allegedly saying: “I’m looking forward to going to Malaysia, so that I can make new jokes – I don’t know any jokes about Malaysian people but I’m sure we’ll find them. I’m sure we’ll find them. There have got to be some, haven’t there?”

He added: “I do think that in a loving company, we should be able to make jokes about each other in a loving way, and tease each other, and enjoy each other’s company. And I think we all know the difference between a racial slur and perhaps ‘Asian corner’, which is still going on here today.”

The new allegations emerge following reports the chief executive also said the former Labour MP Diane Abbott makes you “want to hate all black women” and that the MP “should be shot”.

The Independent revealed Diane Abbott has reported Mr Hester to the Metropolitan Police’s parliamentary liaison and investigations team after she described the comments as “frightening”.

Diane Abbott said the remarks made about her by the chief executive were “frightening” (AFP via Getty Images)

After publication of the initial reported remarksm a statement from Mr Hester was posted on social media which read: “Frank Hester accepts that he was rude about Diane Abbott in a private meeting several years ago but his criticism had nothing to do with her gender nor colour of skin.

“The Guardian is right when it quotes Frank saying he abhors racism, not least because he experienced it as the child of Irish immigrants in the 1970s.

”He rang Diane Abbott twice today to try to apologise directly for the hurt he has caused her, and is deeply sorry for his remarks.”

The statement added: “He wishes to make it clear that he regards racism as a poison which has no place in public life.”

Mr Hester later posted another statement on social media that said he abhors “racism” and that “we should have the confidence to discuss our differences openly and even playfully without seeking to cause offence”.

Leading Tory figures have condemned the language used by the Conservative donor, who gave the party £10m in 2023.

Trade secretary Kemi Badenoch and former chancellor Kwasi Kwarteng said the remarks were racist.

Eventually, a day after the row first broke out, the prime minister’s spokesperson said the comments were “racist and wrong” – having previously refused to condemn them as racist.

But Rishi Sunak and his party are increasingly under fire for refusing to return Mr Hester’s donations.

Labour party chair Anneliese Dodds said the Conservatives “must apologise unequivocally to Diane Abbott” and “pay back these donations and root out the extreme views and prejudice which appears to be tolerated within the party”.

In an extraordinary blue-on-blue intervention, leading Conservative and mayor for the West Midlands Andy Street told BBC Radio 4’s Today programme that if he’d received a £10m donation from Mr Hester: “I would think about the company I kept and I would give that money back.”

Buisness minister Nus Ghani has also expressed discontent on social media site, X, stating: “Zero tolerance on racism is just a slogan in todays politics.”

In a coded message, Ms Ghani said:

“Zero tolerance on racism is just a slogan in todays politics.

“Am reminded of Toni Morrison’s quote ‘The people who do this thing, who practice racism, are bereft. That is something distorted about the psyche. It’s a huge waste and it’s a corruption and a distortion’.”

But asked on Sky News whether the Tories should give back Mr Hester’s money, Post Office minister Kevin Hollinrake said: “I don’t think that is the right thing to do.”

Mr Hollinrake said that although his comments were “clearly racist and wrong”, Mr Hester has “apologised” and said: “I don’t think that means Frank Hester is necessarily a racist.”

Asked whether he would be comfortable spending Mr Hester’s donations, Mr Hollinrake said: “On the basis he is not a racist, has apologised for what he said, yes.”

TPP and Mr Hester’s lawyers have been approached for comment.