Prescott faces inquiry over contacts with US billionaire

British prime minister Tony Blair's deputy, John Prescott, faced an official investigation yesterday into his contacts with an…

British prime minister Tony Blair's deputy, John Prescott, faced an official investigation yesterday into his contacts with an American billionaire who hopes to open a casino in London.

Mr Prescott has recently caused considerable embarrassment to Mr Blair by having an affair with his secretary and holding on to a grace-and-favour mansion after a demotion.

The Commons Standards Commissioner said he was launching a preliminary inquiry after Mr Prescott said he had stayed at a ranch owned by US oil and entertainment mogul Philip Anschutz, who wants to turn London's Millennium Dome into a casino.

"Having considered the matter, [the commissioner] thinks there is probably enough substance in the allegation to warrant further investigation," said a spokeswoman for Sir Philip Mawer. The combative Mr Prescott, also known for punching a member of the public who hurled an egg at him at a 2001 election rally, sought to calm critics by entering the stay in a register of interests. But he insists he has done no wrong as he has no power over gambling licence decisions.

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But the Conservatives smelt blood. "Why on earth did the deputy prime minister, the second most-powerful political figure in the land, have seven meetings with somebody who wants to bid for the only slot available for a regional casino?" asked Tory MP Hugo Swire on BBC radio.

Mr Blair, who promised Labour would be "whiter than white" when it took power in 1997, has consistently backed Mr Prescott even after reports he cheated on his wife. But he was stripped of most governmental responsibilities, and later gave up a free official country residence after he was photographed playing croquet during working hours. - (Reuters)