Questions rise over London IT empire of ‘Tory Obama’ Adam Afriyie

Mr Afriyie was touted as a possible challenger to David Cameron for the Conservative leadership in 2013

Mr Afriyie said he had businesses in the UK, the US and Australia (Getty Images)

Adam Afriyie was the politician the Conservatives were desperate to make a success. Black, handsome and fabulously successful, he was the epitomy of the modern party. At one stage, the Windsor MP was even dubbed the “Tory Obama” – so high were the party’s hopes for him.

He was even said to be worth as much as £100 million and was touted as a possible challenger to David Cameron for the Conservative leadership in 2013.

It has emerged that he has seen one of his two London firms fall into administration and the other’s revenues fall dramatically.

It has also emerged that shareholders in the second business, including a former Conservative MP, have taken a charge out on his mansion after a lengthy legal dispute. Such a charge is usually taken as security for a business debt.

Connect Support Services, his City-based IT firm, was quietly put into administration last year, owing the taxman £1.7 million. It was sold last week to an unnamed buyer. It is not known how much creditors including HMRC will receive.

Connect’s chief executive since 2007 was former Conservative Party chief executive Mark MacGregor. He left the business last year and his LinkedIn CV says he is now working at Karhoo, the taxi app that went into administration in November before being bought by Renault. The Standard was unable to reach him for comment.

It has also emerged that two former minority shareholders in Afriye’s other UK business, Axonn Media, brought a legal action against the politician. While that case was settled in 2015, the pair took a charge over his family home in Windsor in November last year. The duo are Graham Riddick, a former MP, and businessman Andrew Scott. Riddick was caught up in the cash for questions scandal in 1994 when he was approached by undercover journalists and agreed to enter into a consultancy, although he subsequently refused a cheque in return for asking a parliamentary question before learning of the Sunday Times investigation.

The sprawling property has been up for sale for almost £5 million since 2015. Afriyie’s other home, an eight-bedroom, Grade II-listed house near the Houses of Parliament, has also been on the market since then, valued at £16.7 million.

The Axonn legal row is said to stem from a dispute over shareholdings in a successful US business. Sources said Afriyie and other shareholders agreed to buy the other camp out of their Axonn stakes.

One of his opponents in the row said: “I’m afraid Mr Afriyie is not all he seems to be.”

Axonn’s sales have dwindled from more than £10 million in 2010 to below £6 million, meaning it does not now even file full accounts. From employing 200 in its heyday providing content for company websites, it now has about 50 staff and no longer pays the £265,000-a-year dividends it once did.

Managing director Alan Boyce said the company had diversified from the content market to selling analytical services to its clients. He described the move as “creative destruction” of its old business model and said it was making a profit.

The administrator’s report into Connect recorded that Afriyie set up the business in 1993. It grew so rapidly at its Docklands HQ that it was named a Virgin Fast-Track 100 company.

But revenues and profits fell, and last year its accountants raised doubts about its viability. Afriyie called in the administrators, who said it owed creditors £2.1 million.

Afriyie said he had businesses in the UK, the US and Australia, adding: “The IT services market is changing and I’m delighted that under new ownership the future of Connect is secure for staff and customers. Above all I want to thank the management and staff at Connect for the excellent work they have done over so many years.”

His office described his UK businesses as “residual interests” resulting from his life as an entrepreneur before joining parliament. They remained after he sold DeHavilland, his political information company, to Emap. At the time, the deal was reported to have made him £13 million.

His office said: “Since 2005 Mr Afriyie has been focussing his time on his parliamentary duties and serving his constituents and has been very careful not to comment on his personal investments or finances.”