LONDON, July 12: Lord Levy, the chief fundraiser for Prime Minister Tony Blair’s ruling Labour Party, has been arrested by police probing allegations favours had been awarded in return for cash, according to media reports on Wednesday.

The ‘cash-for-favours’ controversy which erupted earlier this year has dented Blair’s standing in opinion polls and sparked media calls for his resignation.

“Officers from the specialist crime directorate requested a man to attend a London police station this morning where he was arrested in connection with alleged offences under the Honours (Prevention of Abuses) Act 1925 and Political Parties, Elections and Referendum Act 2000,” a police spokesman said.

“The man is currently in custody,” he said. Labour has come under pressure after officials revealed it had received nearly 14 million pounds ($26 million) of loans from 12 businessmen, some of whom were nominated for seats in Britain’s unelected upper house of parliament after lending money.

Police have been investigating all political parties in Britain after the row broke out in March, when police arrested former government adviser Des Smith who had resigned after telling an undercover reporter that anyone making donations to Blair’s flagship schools programme could expect to receive state awards.—Reuters