Chinese ‘spy’ scandal may not be Prince Andrew’s fault, says source

The Duke of York may not be to blame for the scandal surrounding an alleged Chinese spy, a well-placed source has insisted.

The source told The Telegraph that criticism should be directed at Beijing, not Prince Andrew, if it turned out that the alleged agent was “on manoeuvres” for the Communist country.

The Telegraph understands that Buckingham Palace is investigating the alleged spy’s multiple visits to royal residences to find out who else he may have come into contact with and the specific details surrounding each visit.

The businessman, currently the subject of a court anonymity order and referred to only as H6, was a “close confidant” of the Duke, according to court documents, and was connected to the Chinese branch of his Pitch@Palace operation.

The Telegraph revealed on Friday that the security services are investigating money he is believed to have given to the Duke’s business venture.

H6 has been accused of working for the United Front Work Department (UFWD), a Chinese state arm used to gather intelligence and recruit agents, and has been barred from re-entering the UK on national security grounds.

The well-placed source said the Prince had met the man through government-sanctioned activity.

“If it is true that the Duke was targeted by this man and that this man in turn was on manoeuvres in some way, I don’t see how that can be a criticism of the Duke rather than a criticism of Chinese operatives,” they told The Telegraph. “It’s a bit mystifying.”

On Saturday, senior politicians called for judges to allow the media to name the man after a foreign publication reported his identity.

An anonymity order was made as part of a legal case brought by H6 at the Special Immigration Appeals Commission to challenge the decision to bar him from entering the country. However, the order was branded “untenable” following an article by an Asian news outlet which gave the man’s name alongside a picture.

Chris Philp, the shadow home secretary, said: “Given the Chinese spy has now been named outside the UK, it is increasingly untenable to maintain anonymity here. It serves the public interest to know who this man is, since that might prompt further information to be volunteered.

“We should not underestimate the threat posed by Chinese infiltration of democratic, governmental, and academic institutions as well as the technology sector. Espionage and intellectual property theft by China remains a very serious problem. Chinese espionage activity must be fully exposed publicly.”

Reform UK leader Nigel Farage also threatened to lift the anonymity order and name the spy. Mr Farage said he may use parliamentary privilege to release the name in the House of Commons. “It’s clearly in the national interest,” he told the Mail on Sunday.

Buckingham Palace’s investigation will focus on who else the alleged spy might have met during his various visits to royal properties. He was reportedly invited into the palace on two occasions and was also present at a function at St James’s Palace and an event at Windsor Castle.

A source said: “We are taking the appropriate steps one might expect in the circumstances.”

It is thought unlikely that security systems were breached as he would have used legitimate identification and adhered to the usual protocols. The Duke has insisted he “ceased all contact” with the alleged spy after concerns were raised, and that “nothing of a sensitive nature was ever discussed”.

According to court documents, Prince Andrew told H6 that he could act on his behalf when dealing with potential investors in China. The man was invited to the Duke’s birthday party in 2020.

The revelation that MI5 is investigating money paid by H6 to the Prince’s business venture follows years of scandal surrounding the royal’s finances, which included taking money from Jeffrey Epstein, the convicted child sex offender.

The King cut off all funding from his brother earlier this year, and it is not known how he funds a lavish lifestyle, including the upkeep of Royal Lodge, a 30-room property owned by the Crown Estate.

The details of H6’s connection to the Duke came to light in a legal hearing last Tuesday, in which he tried to have his ban from the UK overturned but was unsuccessful.

China is regarded by intelligence and law enforcement agencies as a long-standing potential threat to British interests and the UFWD is one of the Chinese Communist Party’s key bodies charged with gaining influence abroad.

A Palace spokesman said they did not discuss security matters.