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Prime Minister Rishi Sunak said "no issues" were raised with him at the time of appointing Nadhim Zahawi as the Conservative party chairman, but "there are questions to answer".
It has emerged that Mr Zahawi paid a penalty to HMRC and is now facing calls to resign as a minister.
Speaking at a cabinet away day in Chequers, Mr Sunak said he would wait for the results of an investigation into Nadhim Zahawi's tax affairs before deciding on the minister's future.