Police close in on Blair over donors
David Leppard and Robert Winnett
LABOUR’S chief fundraiser has implicated Tony Blair as the key figure in the cash-for-honours scandal, a well-placed source has revealed.
Lord Levy, a close associate of the prime minister, told Scotland Yard detectives last month that he was acting on the direct orders of Blair when he secretly obtained £14m in loans from businessmen to fund the party.
He has been questioned twice in the past four months after it emerged that four businessmen who lent Labour money were also recommended by Blair for peerages. The honours were blocked by an official watchdog.
Levy’s potentially incriminating testimony could prove crucial to the decision to question Blair — the culmination of a seven-month inquiry. Police hope to interview the prime minister within the next five weeks.
A prosecution source said: “Levy told the police that everything he did was for the top man. It wasn’t for
anybody else, just for Blair. That’s why the PM has to be interviewed.”
The Sunday Times, which exposed the scandal, has established that Blair hosted dinners and meetings with those who went on to lend money to Labour. He personally approved the controversial loan scheme.
Matt Carter, the former general secretary of the party, who signed off the loans, is understood to have been questioned by detectives recently.
A friend of Levy said this weekend: “The prime minister knew all these people [who lent money] and it was entirely his decision who became working peers. He is right at the centre of the whole thing.
“Lord Levy was against raising money through loans but did so after being asked to by Blair — amid serious financial problems for Labour. He has nothing to do with honours and could not offer anyone anything — that is up to the prime minister.”
Although no final decision has been made, the Metropolitan police hope to interview Blair before the end of next month to conclude the first stage of its inquiry. The Crown Prosecution Service will then decide what action to take.
Another well-placed source, who has been briefed on the inquiry, said Levy — known as “Lord Cashpoint” within party circles — could yet face criminal charges. It follows initial scepticism among prosecution sources that the investigation would lead to action.
“The police are not ruling it out. It’s partly a question of what level of charge to go for,” the source said.
As the scandal has unfolded, police have arrested three people and interviewed at least 50. Last week Michael Howard, the former Tory leader, became the latest high-profile figure to be questioned, at his home in central London.
Levy, a former music industry executive elevated to the Lords by Blair in 1997, has been questioned over two possible offences. At least three other senior Downing Street aides, including Jonathan Powell, Blair’s chief of staff, have spoken to the police.
During Levy’s interviews he was asked whether he had offered the prospect of a peerage to potential donors in exchange for funding Labour in the run-up to the general election last year.
However, a friend of the peer said: “The idea he was handing out peerages is ridiculous. If honours were on offer to people giving cash to Labour, Lord Levy could fill the Royal Albert Hall twice over.”
Levy was also asked whether he knew of any plans to tell donors to disguise their backing for the party as loans, or whether he solicited loans that were not on commercial terms. This would constitute a criminal offence under electoral laws introduced by Labour in 2001. Levy denies breaking any law.
The peer has privately insisted that Blair was intimately involved in the loans scheme, which would make it difficult for the police to prosecute Levy without bringing charges against the prime minister. He remains ultra-loyal to Blair. The prime minister has indicated he is prepared to take responsibility for the loans scheme.
Lord Oakeshott, a Liberal Democrat peer, said: “The police can hardly conclude their inquiries into the possible sale of Labour peerages without interviewing Blair who is the monopoly supplier.”
This weekend new details emerged revealing Blair’s pivotal role in the affair and his close relationship with the 12 businessmen who lent £14m to the party.
This has led to speculation that the prime minister may have had a direct role in lining up the donors. A Downing Street insider revealed that each had “met and knows the prime minister personally”.
Blair is close to all four donors nominated for peerages: Sir David Garrard, Barry Townsley, Sir Gulam Noon and Chai Patel.
Townsley, a stockbroker, and the Blair family are “good friends”; Cherie Blair is said to have accompanied Townsley to the Chelsea flower show. Blair has praised Garrard, a property developer, and his wife, Maureen, for their “vision” in sponsoring city academies.
He has also met Patel to discuss “health issues” and Noon, a ready-meals tycoon, has visited Downing Street to advise Blair on race relations in the light of the terrorist threat.
The insider claims Andrew Rosenfeld, who lent Labour £1m, had a private dinner with Blair at No 10.
Blair also allegedly met Nigel Morris, who lent £1m, at a party at the home of Sir Ronald Cohen, another donor. Friends of Levy point out that at the time the peer had not met Morris.
Sir Christopher Evans, a biotech tycoon who lent £1m and was one of those arrested, is said to have had “multiple meetings” with Blair at No 10 to discuss “science projects”. Richard Caring, who lent £2m, is also claimed to have held “several meetings” with Blair.
The insider said: “These were not people who were tapped up out of the blue by Lord Levy for loans, they were well known to the prime minister. Only those who were personally approved by Blair were approached.”
Police have obtained internal correspondence from Downing Street. Of particular interest is thought to be a series of e-mails sent within Downing Street discussing those who had lent money and who were to be nominated for peerages. Detectives have also removed Levy’s diary.
Blair has refused to reveal details of any meetings he has held with the businessmen.
Senior sources are annoyed at what they claim is a biased police operation. Everyone arrested has been linked to Labour or the government and Blair is said to be preparing an “outspoken” response following the conclusion of the inquiry.
One source said: “Blair believes the whole thing has been biased. The Tories have been taking loans — and giving peerages to those making loans — for years, yet none of them have been arrested. Why not?”
Levy declined to comment.
Fifty questioned in honours inquiry
Scotland Yard has so far arrested three people and questioned at least 50 in the cash for honours inquiry, writes David Leppard.
Those arrested include Lord Levy, Labour’s chief fundraiser, Sir Christopher Evans, a donor and founder of Merlin Biosciences, and Des Smith, an adviser to the government’s city academies programme.
Those questioned under caution — an indication that they are being treated as potential suspects — are Ruth Turner, Downing Street’s director of government relations and John McTernan, Tony Blair’s director of political operations. Others who
have been interviewed include Michael Howard, the former Tory leader, Ian McCartney, the former Labour chairman, and Lord Sainsbury, the science minister who lent £2m.
Chai Patel, Sir Gulam Noon, Barry Townsley and Sir David Garrard, who all made substantial loans, have also been quizzed.
Detectives are investigating possible criminal offences under the 1925 Honours Act. They are also looking for evidence of breaches of the 2000 Political Parties, Elections and Referendums Act, which makes it an offence for political parties to fail to declare donations. Fifty questioned in honours inquiry
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Sorry - it was too late to be arsed to read the whole lot and highlight the most interesting bits, the title was good enough for an "oh dear" (tm) thread.
David Leppard and Robert Winnett
LABOUR’S chief fundraiser has implicated Tony Blair as the key figure in the cash-for-honours scandal, a well-placed source has revealed.
Lord Levy, a close associate of the prime minister, told Scotland Yard detectives last month that he was acting on the direct orders of Blair when he secretly obtained £14m in loans from businessmen to fund the party.
He has been questioned twice in the past four months after it emerged that four businessmen who lent Labour money were also recommended by Blair for peerages. The honours were blocked by an official watchdog.
Levy’s potentially incriminating testimony could prove crucial to the decision to question Blair — the culmination of a seven-month inquiry. Police hope to interview the prime minister within the next five weeks.
A prosecution source said: “Levy told the police that everything he did was for the top man. It wasn’t for
anybody else, just for Blair. That’s why the PM has to be interviewed.”
The Sunday Times, which exposed the scandal, has established that Blair hosted dinners and meetings with those who went on to lend money to Labour. He personally approved the controversial loan scheme.
Matt Carter, the former general secretary of the party, who signed off the loans, is understood to have been questioned by detectives recently.
A friend of Levy said this weekend: “The prime minister knew all these people [who lent money] and it was entirely his decision who became working peers. He is right at the centre of the whole thing.
“Lord Levy was against raising money through loans but did so after being asked to by Blair — amid serious financial problems for Labour. He has nothing to do with honours and could not offer anyone anything — that is up to the prime minister.”
Although no final decision has been made, the Metropolitan police hope to interview Blair before the end of next month to conclude the first stage of its inquiry. The Crown Prosecution Service will then decide what action to take.
Another well-placed source, who has been briefed on the inquiry, said Levy — known as “Lord Cashpoint” within party circles — could yet face criminal charges. It follows initial scepticism among prosecution sources that the investigation would lead to action.
“The police are not ruling it out. It’s partly a question of what level of charge to go for,” the source said.
As the scandal has unfolded, police have arrested three people and interviewed at least 50. Last week Michael Howard, the former Tory leader, became the latest high-profile figure to be questioned, at his home in central London.
Levy, a former music industry executive elevated to the Lords by Blair in 1997, has been questioned over two possible offences. At least three other senior Downing Street aides, including Jonathan Powell, Blair’s chief of staff, have spoken to the police.
During Levy’s interviews he was asked whether he had offered the prospect of a peerage to potential donors in exchange for funding Labour in the run-up to the general election last year.
However, a friend of the peer said: “The idea he was handing out peerages is ridiculous. If honours were on offer to people giving cash to Labour, Lord Levy could fill the Royal Albert Hall twice over.”
Levy was also asked whether he knew of any plans to tell donors to disguise their backing for the party as loans, or whether he solicited loans that were not on commercial terms. This would constitute a criminal offence under electoral laws introduced by Labour in 2001. Levy denies breaking any law.
The peer has privately insisted that Blair was intimately involved in the loans scheme, which would make it difficult for the police to prosecute Levy without bringing charges against the prime minister. He remains ultra-loyal to Blair. The prime minister has indicated he is prepared to take responsibility for the loans scheme.
Lord Oakeshott, a Liberal Democrat peer, said: “The police can hardly conclude their inquiries into the possible sale of Labour peerages without interviewing Blair who is the monopoly supplier.”
This weekend new details emerged revealing Blair’s pivotal role in the affair and his close relationship with the 12 businessmen who lent £14m to the party.
This has led to speculation that the prime minister may have had a direct role in lining up the donors. A Downing Street insider revealed that each had “met and knows the prime minister personally”.
Blair is close to all four donors nominated for peerages: Sir David Garrard, Barry Townsley, Sir Gulam Noon and Chai Patel.
Townsley, a stockbroker, and the Blair family are “good friends”; Cherie Blair is said to have accompanied Townsley to the Chelsea flower show. Blair has praised Garrard, a property developer, and his wife, Maureen, for their “vision” in sponsoring city academies.
He has also met Patel to discuss “health issues” and Noon, a ready-meals tycoon, has visited Downing Street to advise Blair on race relations in the light of the terrorist threat.
The insider claims Andrew Rosenfeld, who lent Labour £1m, had a private dinner with Blair at No 10.
Blair also allegedly met Nigel Morris, who lent £1m, at a party at the home of Sir Ronald Cohen, another donor. Friends of Levy point out that at the time the peer had not met Morris.
Sir Christopher Evans, a biotech tycoon who lent £1m and was one of those arrested, is said to have had “multiple meetings” with Blair at No 10 to discuss “science projects”. Richard Caring, who lent £2m, is also claimed to have held “several meetings” with Blair.
The insider said: “These were not people who were tapped up out of the blue by Lord Levy for loans, they were well known to the prime minister. Only those who were personally approved by Blair were approached.”
Police have obtained internal correspondence from Downing Street. Of particular interest is thought to be a series of e-mails sent within Downing Street discussing those who had lent money and who were to be nominated for peerages. Detectives have also removed Levy’s diary.
Blair has refused to reveal details of any meetings he has held with the businessmen.
Senior sources are annoyed at what they claim is a biased police operation. Everyone arrested has been linked to Labour or the government and Blair is said to be preparing an “outspoken” response following the conclusion of the inquiry.
One source said: “Blair believes the whole thing has been biased. The Tories have been taking loans — and giving peerages to those making loans — for years, yet none of them have been arrested. Why not?”
Levy declined to comment.
Fifty questioned in honours inquiry
Scotland Yard has so far arrested three people and questioned at least 50 in the cash for honours inquiry, writes David Leppard.
Those arrested include Lord Levy, Labour’s chief fundraiser, Sir Christopher Evans, a donor and founder of Merlin Biosciences, and Des Smith, an adviser to the government’s city academies programme.
Those questioned under caution — an indication that they are being treated as potential suspects — are Ruth Turner, Downing Street’s director of government relations and John McTernan, Tony Blair’s director of political operations. Others who
have been interviewed include Michael Howard, the former Tory leader, Ian McCartney, the former Labour chairman, and Lord Sainsbury, the science minister who lent £2m.
Chai Patel, Sir Gulam Noon, Barry Townsley and Sir David Garrard, who all made substantial loans, have also been quizzed.
Detectives are investigating possible criminal offences under the 1925 Honours Act. They are also looking for evidence of breaches of the 2000 Political Parties, Elections and Referendums Act, which makes it an offence for political parties to fail to declare donations. Fifty questioned in honours inquiry
---
Sorry - it was too late to be arsed to read the whole lot and highlight the most interesting bits, the title was good enough for an "oh dear" (tm) thread.
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