Met 'to investigate Galloway for taking cash from Saddam'

Allegations that the Respect MP George Galloway took oil money from Saddam Hussein have been passed to Scotland Yard.

The Serious Fraud Office is reported to have held talks with the Crown Prosecution Service over whether to investigate claims the Bethnal Green and Bow MP was aware that money was being diverted from the Iraqi oil-for-food programme to pay for his political campaigning.

Mr Galloway has repeatedly denied any wrongdoing and the SFO has dropped its own investigation into the MP's alleged 'kick-backs' from Saddam Hussein.

But a Scotland Yard spokesman said: "The Metropolitan police is in discussions with the Crown Prosecution Service and is seeking advice. We are considering a request to investigate the matter.

"We are not investigating at this time."

Mr Galloway's spokesman told the Guardian: "This story is so old, so hoary, so repetitive that it could be on the TV programme Life on Mars. George has been exonerated repeatedly. The SFO must have handed a blank sheet of paper to Scotland Yard.

"It is a waste of public servants time."

Meanwhile, it also emerged yesterday that a number of British firms are being investigated by fraud squad detectives over allegations that they bribed former Iraqi dictator Saddam Hussein to win lucrative contracts.

The investigation, which could take years, is looking at possible breaches of the oil-for-food sanctions that were in place against the country.

The SFO's announcement was triggered by a damning UN report - by Paul Volcker - which listed more than 2,200 companies worldwide that may have been linked to bribery in Iraq.

British firms listed in the report included GlaxoSmithKline, AstraZeneca and Eli Lilly, all of which strongly denied the accusations.

Glasgow-based company Weir Group, which makes pipelines, was prominently named in the UN report and may be investigated separately by Strathclyde Police.

An SFO spokesman said: "The SFO has now opened a formal investigation into issues relating to the breaches of the embargo (against Iraq). All this springs out of the Volcker report and other information that came to us last year.

"The director of the SFO has now signed us up to conduct a full investigation."

The case, which was announced last week, is being led by a senior investigating lawyer and as many as 60 people may be involved.

It is expected to cost around £22million.

Named individuals or whole companies might be brought before the courts and could ultimately face jail or a fine respectively.

"By the time it is finished, I think it will certainly be one of the biggest investigations we have undertaken," the SFO spokesman said.

A spokesman for AstraZeneca said: "We deny any allegation of unethical behaviour on our part in our trading relationships with Iraq.

"AstraZeneca sent a consignment of medicines originally requested by the Hussein government under the United Nations Oil for Food Programme.

"Most of the consignment was delivered after the coalition forces of the US and UK had taken control of the country.

"The consignment was sent with all relevant United Nations permission and UK Government Department of Trade and Industry export licences in place."

Eli Lilly and GlaxoSmithKline also denied breaking the law.