New Levy disclosure is triple blow to PM

13 April 2012

Tony Blair faces a triple blow over the growing sleaze allegations threatening to blight his premiership.

A wealthy businessman who lent Labour £1million admitted he had discussed an honour with the Prime Minister's fundraiser Lord Levy who is at the centre of the cash-for-peerages furore.

More here...

• Lord Levy told businessman he should be 'rewarded'

• Blair's seven sins which will tarnish his legacy

Biotech boss Professor Sir Christopher Evans, the only lender to have been arrested by police investigating the cash-for-peerages claims, wrote to his colleagues, investors and advisers, expressing his concerns that he and Lord Levy may be used as scapegoats by the political establishment.

Sir Christopher, 49, chairman of Merlin Biosciences, insists he has done nothing wrong and stressed that he was never offered anything in return for a donation or loan.

However, his admission that he discussed an honour fuelled the furore over Lord Levy's fundraising activities.

The peer, who has been arrested but not charged by the police, strongly denies any wrong-doing.

In a second blow, the outgoing chairman of the Committee on Standards in Public Life, Sir Alistair Graham, launched a stinging attack on Mr Blair, accusing him of "seven mortal sins" which have damaged public trust in politicians.

They are: the cash-for-peerages row; the Iraq war; appointing an independent Whitehall figure to probe claims of improper conduct by ministers but failing to use this new system; politicising the civil service; a spin culture; allegedly failing to do enough to tackle electoral fraud; and interfering in a fraud investigation into claims of corruption in a deal between BAE Systems and Saudi Arabia.

Sir Alistair said: "I suspect Blair and his government are going to be as strongly identified with the loss of public trust as Major's was with sleaze.

"The most fundamental thing is that Blair has betrayed himself. He set such a high bar to judge him and he has fallen well below the standards he set for himself."

He believes Chancellor Gordon Brown, if he succeeds Mr Blair as expected, is likely to make it a higher priority to restore trust in politicians.

Sir Alistair's contract as chairman-of the anti-sleaze committee ends in April and it is not being renewed, raising concerns that the watchdog may be scrapped.

Labour insiders say Mr Blair is getting his revenge on Sir Alistair, by ousting him, for his outspoken criticism of the Government.

Meanwhile, two ministers faced allegations that they have been providing lobbyists with sensitive information.

But Transport Minister Stephen Ladyman and Home Office Minister Gerry Sutcliffe deny any wrong doing in their links with London-based lobbying firm Golden Arrow Communications.

Mr Ladyman admitted talking about transport issues with a former minister working for the lobbyists but denied passing on "inappropriate" information.

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