City whistleblower who blew the whistle on ‘Chinese spy’ wins £500,000

A City whistleblower has been awarded more than half a million pounds after being sacked for exposing a suspected Chinese spy.

An employment tribunal has awarded Bharat Bhagani, a former compliance officer at Goldenway Global Investments, almost £565,000 in compensation, according to a decision published earlier this week.

Mr Bhagani has sued his former employer Goldenway, a UK subsidiary of a Hong Kong-registered company, in court for unfair dismissal.

The executive claimed he was ordered to obtain a work visa for an employee who later turned out to be a Chinese agent and was fired after he alerted authorities.

Goldenway Global claimed that Mr Bhagani was dismissed for serious misconduct and failure to obey instructions from his directors.

However, a judge last year found Mr Bhagani’s complaint to be “well-founded” and ruled he had been unfairly dismissed because he raised his concerns with the Financial Conduct Authority.

Mr Bhagani went to the city watch post to alert them about the presence of a suspected Chinese spy in 2022.

He also alerted the FCA to allegations of money laundering, fraudulent lending and attempts by Goldenway Global to appoint two Hong Kong-based residents as UK directors without regulatory approval.

According to the court, he told his superiors in Hong Kong: “I have asked the regulators to come in… Please stop all communication with staff in London. You risk harming the regulators’ investigation… I have appealed to the regulators and I am certainly not resigning. I am representing the FCA.”

Mr Bhagani claimed he was “questioned” by British authorities after raising the alarm and said authorities told him the worker he had applied for a visa for was a “Chinese spy agent” and had been deported.

Goldenway Global’s witnesses claimed to have no knowledge of the alleged Chinese spy’s existence. However, in his ruling, Judge Emery said the evidence on this subject had not been “seriously challenged” during the court hearing.

While acknowledging that Goldenway Global may have viewed Mr Bhagani’s conduct as “obstructive”, the court found that Mr Bhagani “honestly believed” that he was required to disclose the alleged espionage attempt to the FCA, even though the espionage fell outside the watchdog’s mandate.

The court found that Mr Bhagani’s dismissal constituted a breach of contract because Goldenway Global had failed to initiate an investigation or disciplinary procedure before his departure.

Mr Bhagani also claimed he lost a job offer after Goldenway Global bosses provided a reference claiming he had been fired for gross misconduct, without proving the allegations or giving him an opportunity to comment.

The whistleblower also claimed compensation for unpaid leave and notice.

Goldenway Global was placed under restrictions by the Financial Conduct Authority (FCA) prior to its closure in 2022.

The company, based in a central London office near Liverpool Street station, provides foreign exchange services. It is owned by Goldenway Precious Metals, a Hong Kong-based gold and silver trading platform.

Goldenway Global has been contacted for comment.

The Chinese embassy rejected the court’s findings at the time of the initial ruling. A spokesperson had previously said: “The so-called ‘Chinese spy agent’ related to an employment dispute is entirely based on hearsay and was also fabricated. We firmly oppose any malicious slander against China.”

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