The king is understood to be furious that Prince Andrew has plunged the monarchy into a major scandal, as his relationship with an alleged Chinese spy tarnished the reputation of the entire royal family.
A source, however, said that despite his frustration with the Duke of York, Charles has accepted that he cannot “divorce or send away” his younger brother as “there will always be a blood link.”
This newspaper has learned that, surprisingly, the Palace cannot rule out that the Duke is using money from Chinese donors to fund his stay at the 30-bedroom Royal Lodge in Windsor Park.
Officials have concluded that they have no authority or legal right to investigate Andrew’s financial affairs and must simply take his word that his income comes from legitimate sources.
“The Palace has behaved as best it can in a difficult relationship,” the source said last night.
‘All the sanctions that could have been imposed have been imposed, but you cannot divorce or fire your brother for being your brother. There will always be a blood connection and all families tend to have difficult relatives to deal with. Of course, it is understood that this looks bad for the whole family, but that is down to one individual.’
The latest scandal broke on Thursday when a “close confidant” of the Duke of York was revealed to be a suspected Chinese spy who had been banned from entering the UK following an MI5 investigation.
In what appears to be an extraordinary breach of national security, the alleged agent, who can only be identified as H6, was so close to Andrew that he visited Buckingham Palace twice and entered St James’s Palace and the Castle. of Windsor.
King Charles is understood to be furious over his brother Prince Andrew’s links to an alleged Chinese spy, which risks tarnishing the reputation of the Royal Family.
Prince Andrew with the alleged Chinese spy in 2019. Officials concluded they had no authority or legal right to investigate Andrew’s financial affairs and could not rule out that he had used Chinese donors to support his stay at the Royal Lodge in Windsor.
He was even authorized to act on Andrew’s behalf to seek investors in China.
MI5 discovered that the businessman, 50, was a member of the Chinese Communist Party and worked for its shadowy United Front Work Department, which collects intelligence.
When he was stopped by police at the UK border in 2021, he was found to have a briefing document in which Andrew appeared to be described as being in a “desperate situation and ready to grab anything”.
The Mail on Sunday can reveal that the alleged spy previously attended a meeting of the powerful Chinese People’s Political Consultative Conference (CPPCC) in Beijing. In a sign of his importance to the Chinese Communist Party, he was photographed in the front row of the meeting in the grand Great Hall of the People.
Royal sources are concerned that the growing controversy threatens to overshadow the good work of the King and Queen Camilla, as well as the Prince and Princess of Wales. It also comes less than two weeks before the King’s Christmas message.
Earlier this year, the King stopped paying his brother’s £3m-a-year security bill at Royal Lodge and urged him to move to more modest accommodation.
But in November, it emerged that the duke had been allowed to stay at the property after convincing palace authorities that he had raised enough funds to support himself.
The keeper of the Privy Purse, Sir Michael Stevens, reportedly approved the funding coming from legitimate sources. Last week’s revelations, however, raise new questions about where exactly Andrew found the money to finance his stay at the Windsor mansion.
The MoS understands that because your lease is with the Crown Estate, and not the Royal Household, you have the same rights and responsibilities as any private tenant.
Indeed, the Palace has concluded that it does not have the power to carry out ‘due diligence’ investigations into the Duke’s private income, any more than it could demand the right to examine the financial records of any private individual.
Earlier this year, the King stopped paying his brother’s £3m-a-year security bill at the Royal Lodge (pictured) and urged him to move to more modest accommodation. But in November it emerged that the duke had been allowed to stay after raising enough funds to support himself.
Officials are said to have repeatedly asked the duke whether his income comes from legitimate sources, and he has insisted that it is.
But last night former minister and royal finance expert Norman Baker said: “It is extraordinary that the Palace does not know where the money comes from.”
“They need to find out urgently and tell us.”
Prince Andrew stepped away from royal duties in 2019 amid scandal over his links to billionaire pedophile Jeffrey Epstein.