BRITAIN: British prime minister Tony Blair faced embarrassing questions in the Commons yesterday about the "cash for peerages" controversy, about which he is also expected to be interviewed as part of a Scotland Yard inquiry.
Mr Blair adopted a combative stance, insisting he was not prepared to offer "a running commentary" on developments in the inquiry.
This was launched after the House of Lords appointments commission blocked peerages for four Labour supporters who were among rich backers that gave the party millions of pounds in secret loans in the run-up to last year's general election.
However, the directness of Mr Blair's questioning by two backbench MPs was a sharp reminder of the danger confronting the prime minister, even as he launches himself on a fresh campaign to kill off speculation about when he might stand down.
Conservative MP Nigel Evans challenged Mr Blair about a £2 million (€2.9 million) loan to Labour from trade minister Lord Sainsbury, asking specifically if he had reported the existence of the loan to the cabinet secretary.
"As you prepare to help the police with their inquiries, do you not feel it ill-judged to have accepted a £2 million loan off one of your ministers, which is a clear and ongoing conflict of interest for you?" demanded Mr Evans. "Do you not agree that the whole thing stinks and it's about time you gave the £2 million back?"
In reply, Mr Blair said only: "I think he [ Lord Sainsbury] does a superb job as a minister and I'm proud to have him in government." Mr Blair was, in turn, pressed by Plaid Cymru's parliamentary leader, Elfyn Llwyd, over why Labour had apparently favoured loans to donations.
"Why was it, when your fundraiser-in-chief and tennis partner [Lord Levy] was offered a £1.5 million donation to the Labour Party, he refused that in favour of a loan?" he asked.
Again Mr Blair gave his questioner short shrift, declaring: "I have no intention of giving a running commentary on this, but I can say that I'm delighted that so many successful people support the Labour Party, and quite right too."
Speaking outside the chamber after the exchanges, Mr Evans confirmed he had asked John Bourne, the auditor general, to investigate whether Mr Blair had broken his own code.
"Lord Sainsbury is the prime minister's longest-standing minister in the same government department, and to sack him or move him will have clear repercussions," said Mr Evans. "I am amazed that the prime minister fails to see any problem with taking loans for his party from rich government ministers."
Meanwhile, the National Governors' Association said yesterday the government's city academies programme should be suspended amid "unsavoury" suggestions about their funding, and allegations that academy sponsors could expect to receive honours in exchange for donations.
A former government adviser arrested by police following an interview with a reporter, Des Smith, said on Tuesday through his solicitors that he would be vigorously denying any wrongdoing.
Mr Smith resigned from the Specialist Schools and Academies Trust after the interview in which he reportedly indicated a range of honours that might be available to sponsors.