The Hindu : International : Cash-for-favours scandal in U.K. spreads

Online edition of India's National Newspaper
Monday, Mar 27, 2006

International

International

Cash-for-favours scandal in U.K. spreads

Hasan Suroor

LONDON: Britain's alleged cash-for-favours "scandal'' is spreading amid allegations that the Deputy Prime Minister John Prescott took policy decisions favouring a firm of property developers whose owner had given a "secret'' loan to the Labour Party.

Andrew Rosenfeld, whose firm got a go-ahead for a £600-million controversial building scheme, had given a loan of £1 million to the party last year, The Sunday Times claimed fuelling allegations of sleaze against the Labour Party.

Mr. Prescott denied that he knew about Mr. Rosenfeld's loan to the party. His spokesman said the planning decision, which is said to have benefited Mr. Rosenfeld's firm, was taken by the local council and not by Mr. Prescott.

Transparency demanded

Critics, including Labour MPs, demanded more transparency in the way the party raised funds. A former Labour Minister said that such allegations made Labour look "desperately seedy''. "That is damaging to the Government, the Labour Party and politics in general,'' Peter Kilfoyle, former Defence Minister said.

The latest row came as Prime Minister Tony Blair was trying to defuse the crisis over cash-for-peerages relating to the disclosure that at least four businessmen, who had given loans or donations to Labour, were nominated for peerages. Among them were Ghulam Noon, the so-called "Indian curry king'', and Chai Patel, owner of a healthcare company. Their nominations were blocked by the Lords Appointments Commission after their financial links with the party came to light. Both have denied they had expected any favours in return.

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