Search the Internet          Tips

Blair aide embroiled in Hinduja passport row

Prime Minister Tony Blair's closest political ally, cabinet minister Peter Mandelson, faced mounting anger on Wednesday over his involvement in a British passport application by Srichand Hinduja.

Mandelson, who is Northern Ireland Secretary, insisted in a round of television interviews that he had done nothing wrong in connection with the application by Srichand Hinduja.

Many newspapers accused Mandelson of failing to tell the truth about the matter after he first denied personally contacting another British minister over the passport application and then admitting that he had in fact done so.

"He must go," said the Daily Express in a front page headline. "He fights for political life as passports for favours row boils over," said The Mirror.

Political analysts believe Mandelson will most likely survive this episode but agree it raises serious questions about his ambition to become foreign secretary.

With an election expected in May, Blair's Labour Party runs the risk of being tarred with the same sort of sleaze allegations that helped to bring down the Conservatives in 1997.

Mandelson, who has resigned once before from the government over a financial scandal, was adamant that he was guilty of no impropriety and Blair's office made clear that he had the prime minister's backing.

"I acted in an entirely proper way," Mandelson said. "I did not intercede on behalf of any member of the Hinduja family."

Mandelson said he had talked to the immigration minister in 1998 about Hinduja's passport application.

Hinduja, and his brothers Gopichand and Prakash, are now in India for questioning by police about the Bofors scandal.

The billionaire brothers, whose business interests span media, banking, oil and chemicals, deny any wrongdoing in the Bofors scandal involving alleged kickbacks.

Hinduja later made a payment of one million pounds ($1.4 million) towards the cost of the Millennium Dome, for which Mandelson had been responsible. Mandelson rejected a suggestion that his actions in the matter had the appearance of corruption.

"No, I don't accept that claim," he said. "The facts don't substantiate that."

He said he had neither supported nor sponsored Hinduja's application for a passport.

"An innocent inquiry was made in a two-minute phone conversation facilitated by civil servants and monitored by them," he said. "That is the beginning and end of this story."

Mandelson spoke to Home Office minister Mike O'Brien about the process of passport requests, having met Hinduja at a party.

Blair's spokesman said Mandelson had merely passed inquiries on to the relevant department. "There is nothing improper at all in Peter having been approached at an event."

But he was forced to admit that the government's line earlier in the week - that Mandelson had been asked to get involved but had not - had not proved strictly accurate.

Mandelson, the archetypal spin doctor, was widely credited as the architect of Labour's 1997 lanslide election victory.

But he was forced to resign from government in 1998 when it was discovered he had borrowed a large sum from ex-minister and millionaire Geoffrey Robinson to help buy a house.

Mandelson failed to declare the money to his home loan company. His department was investigating Robinson's business affairs at the time.

Blair brought him back into the fold within a year, making him a favourite target for Britain's media.

Srichand Hinduja received British citizenship, having been turned down years earlier.

RELATED LINK
Complete coverage: The Smoking Gun

Tell us what you think of this report