Blair entangled in investigation: Cash-for-peerage scam
By Our Correspondent
LONDON, Nov 4: Even before the week since he escaped by the skin of his teeth a Common’s vote on the Iraq war inquiry, British Prime Minister Tony Blair appears to have got himself embroiled in yet another high drama, this time involving alleged cash for peerage and conflict of interest elements.
The police are investigating that the politicians from the Tory and Labour parties in effect sold peerages to businessmen in return for their cash support. This is illegal under the Honours (Prevention of Abuses) Act.
The second allegation concerns the nature of the loans. Under the Political Parties, Elections and Referendums Act, political parties are allowed to take loans as long as they are commercial, ie if there were an understanding that the party would not have to repay it, or if parties paid a lower rate of interest than that paid by a business borrowing from a bank.
The conflict of interest element came into play when on Saturday newspapers reported that the attorney general, Lord Goldsmith, a close political ally of the prime minister, will be consulted by the Crown Prosecution Service on the case, and is expected to give his views on whether charging Tony Blair, or anyone else, is in the public interest.
Though he will not take the final decision, Lord Goldsmith's involvement has angered MPs who made the complaint.
Investigation into the case was started last winter when it emerged that four businessmen who had lent Labour money had been recommended by Mr Blair for peerages last year.
The four businessmen included Barry Townsley, a stockbroker who lent one million pounds; Sir David Garrard, a property developer who lent £2.3 million; Chai Patel, head of the Priory Clinics, who lent £1.5 million; and Sir Gulam Noon, the so-called ‘curry king’, who lent £250,000.
None of them, however, became peers because they either withdrew their nominations or were blocked by the Lords Appointments Commission, the body responsible for vetting possible lords.
A host of Downing Street and party figures have been questioned in the case by police - leaving Mr Blair as the only central player yet to be interviewed.
According to newspaper reports, detectives are likely to question the prime minister under "criminal caution", which means he is being treated as a potential suspect.
