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Loan trail to No 10
revealed
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It's 'curtains for Blair' if Levy is charged Antony Barnett, Gaby Hinsliff and Ned Temko Sunday July 16, 2006 The Observer Police probing the cash-for-peerages scandal have
uncovered a paper trail that goes to the 'heart of Downing Street', according to
a source close to the investigation.
Although the source would not be drawn on what was discovered, he said the evidence makes it more likely criminal charges will be brought against senior Labour figures. The police are said to have been 'greatly surprised' at what they have found, the source said. The disclosure will alarm Tony Blair and Downing Street chief-of-staff Jonathan Powell, who are both expected to be quizzed by police over the scandal. Last Wednesday Labour's chief fundraiser, Lord Levy, was arrested and questioned by police and it has emerged that two government ministers, Lord Sainsbury and Ian McCartney, have also been interviewed by police. All deny any wrongdoing. The growing cash-for-peerages affair has led some ministers to warn that Blair will be forced out if Levy is charged in connection with the inquiry. 'If Levy is charged, it's curtains,' said one well-placed minister. 'That's the call of everyone in the Parliamentary Labour party I've spoken to: if he's charged, that's it.' Although Blairites are insisting it could be possible for the Prime Minister to stay on in such circumstances if he could distance himself from his chief fundraiser, party sources said attempting to do so would force a leadership challenge. 'They simply wouldn't let him: the party would move against him,' said one senior party aide. John Yates, the senior Scotland Yard detective in charge of the investigation, held detailed private discussions last week with MPs on the Commons constitutional affairs select committee about the likelihood of charges being laid as a result of the inquiry. One source close to the committee said: 'My hunch is 60 per cent that the whole thing never ends up being prosecuted.' The police have also been told that senior Labour figures always knew that many of the loans they received from millionaire backers would be converted to donations in the future. If this is the case it could open up the possibility of other party figures facing charges under the Political Parties Elections and Referendums Act 2000 which stipulates donations over £5,000 must be declared. The Observer has established that Blair attended a meeting with Levy before the last general election when the plans to raise large amounts of funding through secret loans were first drawn up. Last week it was alleged that Levy advised Indian meals tycoon Sir Gulam Noon not to include details of his loan when he was nominated for a House of Lords seat. Levy denies this. Pressure is also mounting on the Conservative party over funding. David Cameron is refusing to give police the names of secret lenders who gave almost £5m to the party before the last election. A senior Tory said the lenders signed commercial confidentiality contracts and did not want their identities revealed. Complete archives at http://www.sitbot.net/ Please let us stay on topic and be civil. OM
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