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NRI News - "cash-for-honours" scandal in UK

 

Two NRIs gave Labour £1.75 million in unpublicised loans-
two close allies of Blair
Tony may face charges

  • The nominations of NRI's were later blocked or withdrawn to get seats in parliament's unelected upper House of Lords
  • Two close allies of British Prime Minister Tony Blair may face charges in the "cash-for-honours" scandal

London, April 21, 2007
Sandeep Kochar

The entire UK 'peerage' system represents nothing more than something bought and paid for by its beneficieries in some form or another; by blood line, by freemasonary, by devious contacts, by backhanders, by bribes, by sucking up, or whatever.

Last year, inquiry into the scam was launched that political parties illegally offering financial supporters seats in parliament's unelected upper House of Lords. Tony Blair is the first Prime Minister to be questioned in office as part of a criminal investigation when four people nominated by Blair for peerages -- seats in Parliament's unelected chamber, the House of Lords -- had loaned the party millions of dollars before last year's general election.

Four businessmen gave Labour £4.5 million in unpublicised loans. They were:

  • Dr Chai Patel, the chief executive of Priory Clinics- has given Labour £1.5 million
  • Sir Gulam Noon, who said he was advised to keep a £250,000 loan secret.
  • Barry Townsley, a stockbroker who has also donated money towards a city academy school
  • Sir David Garrard, a property developer who also donated money to a city academy

Under rules in party funding established by Blair's government, donations over $8,730 must be declared, but loans of any amount do not.

Lord Levy, the Labour Party's chief fund raiser who has been arrested as part of Scotland Yard's year -long inquiry into allegations that honours were given in return for loans of £14 million from 12 businessmen.

His arrest followed allegations that he advised Sir Gulam Noon not to inform the Lords Appointment Committee about a £250,000 loan to the Labor Party. Levy told the entrepreneur Sir Gulam Noon in a telephone conversation to remove a reference to the loan from his Lords application, last October.

Prof Sir Christopher Evans, 49, founder of Merlin Biosciences, who secretly gave a loan to the t the party £1 million to fight its 2005 election campaign, broke his silence about the political scandal in a confidential letter. He was arrested last September, details his relationship with Lord Levy- the Labour Party's chief fund raiser.

Sir Christopher, estimated to be worth more than £150 million and has close relationship with Tony Blair. Sir Christopher, whose business invests in companies working in biosciences, is the first party donor to be arrested as part of the police inquiry that began in March.

"I voluntarily attended the police interview and have always been happy to provide the police with any information they have requested.

"There was nothing raised in the interview that caused me or my solicitor any concern or to think that I have done something wrong. I have done nothing wrong and have absolutely nothing to hide.

"I am willingly co-operating with this inquiry and fully respect the job the police officers are doing, although I am disappointed that the technicality of arrest was used in this situation. My solicitors felt it was unnecessary particularly since I had always indicated my willingness to co-operate fully.

"I am extremely frustrated to be placed in this situation as a result of what I believed to be a straightforward commercial loan to the Labour Party to assist them with their cash flow for the last election campaign.

"I never made a secret of the loan and if I had been asked at any time whether I had made a loan would have confirmed the fact. My record as a long-standing Labour donor and supporter was there for all to see.

"The reason I made the loan was precisely because I was not prepared to make such a substantial donation to the Labour Party. From the outset I made it clear that the money would be a commercial, interest-bearing loan which was to be repaid in full and that remains the case.

"Frankly, if I thought for one moment that I would be placed in this embarrassing and mind-boggling position I would not have made the loan.

"I am proud to have been honoured twice in the past by both Conservative and Labour Governments for my work in the medical biosciences sector. That is the only basis on which I would accept any honour."

 

 

 

 

    Two NRIs gave Labour £1.75 million in unpublicised loans to Labor- Their nominations were later blocked to get seats in parliament's unelected upper House of Lords



    Sir Gulam Noon lent £250,000 to Labour, his name had been blocked by the Lords Appointments Commission because of "Cash for peerages"
  • "I have done nothing wrong," he said. "My conscience is clear. I gave the loan and when I filled in a nomination form I did declare it."
  • "I knew it was a loan, simply a loan, it was not a donation," said Sir Gulam, explaining Labour had made clear he did not have to declare the money under the law.
  • Labour and the Tories have both been given legal advice that loans made on commercial terms did not have to be made public, unlike substantial donations. .....Read More
  • NRI Dr Chai Patel, owner of the Priory rehab clinics, has given Labour £1.5million in donations. He said he would not have agreed to a loan if he had thought it would be seen as buying an honour.
  • He said he was upset by the suggestion of a link between loans and peerages. He said people had ignored his record of public service. .....Read More

 

The Peerage

The Peerage is the collective of all the Lords of the Kingdom or persons raised in class to be considered "Peers of the Monarch".

Lords Spiritual, Dukes, Marquesses, Earls, Viscounts, Barons, Scottish Lords, and Life Barons are all part of the Peerage.

Until recently, the Peerage could be easily defined as those who held a seat in the House of Lords (part of the Parliamentary system in Britain). Today, that is not the case as most of the hereditary Peers have been removed from the House under recent reform

The Peerage is a system of titles of nobility in the United Kingdom, part of the British honours system. The term is used both collectively to refer to the entire body of titles, and individually to refer to a specific title.

All British honours, including peerage dignities, spring from the Sovereign, who is considered the fount of honour