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POLICE investigating the cash for honours scandal seized evidence that Downing Street had plotted to hand peerages to eight of the 12 businessmen who had bankrolled Labour’s 2005 election campaign.
A draft honours list, drawn up in September 2005, showed that the plan to offer peerages to businessmen who had loaned Labour millions of pounds had involved twice as many lenders as previously disclosed.
Scotland Yard discovered that every Labour lender who was eligible for a seat in the House of Lords was initially nominated in lists compiled for Tony Blair by his top aides.
Sir Christopher Evans, the biotechnology entrepreneur, Rod Aldridge, former executive chairman of Capita, Derek Tul-lett, the broker, and Andrew Rosenfeld, chairman of Minerva, were all on an internal Downing Street peerages list. Until now the names of only four lenders – Sir David Garrard, Barry Towns-ley, Chai Patel and Sir Gulam Noon – were known to have been put forward.
The Sunday Times has also discovered that there was a second key piece of evidence – a diary kept by Evans that allegedly details a series of meetings at the House of Lords in 2004 with Lord Levy, Blair’s chief fundraiser, to discuss a peerage.
One well-placed Crown Prosecution Service (CPS) source said the diary was “dynamite” and provided “spectacular” evidence of an alleged “agreement” for Evans to be ennobled in return for a £1m loan.
Evans’s name was removed from the honours list after Downing Street discovered that his company was the subject of an investigation by the Serious Fraud Office.
A CPS official said that these two pieces of evidence formed the core of the 16-month police investigation, which the Yard believed until recently would lead to charges against key Downing Street aides.
However, the investigation was effectively halted at a meeting on July 4 when a leading government barrister, David Perry QC, ruled that the diary was not admissible as evidence.
Perry also said the police must have evidence of an “unambiguous agreement” showing that the financial backers gave money only on the explicit understanding that they would be honoured in return. The CPS announced last week it would not be charging anyone.
The decision followed a criminal investigation that led to the arrest of Levy and Ruth Turner, Blair’s director of government relations. Blair himself was questioned three times by police.
Government insiders revealed that the police were shocked at the decision not to prosecute. An official said the police and the CPS had worked side by side on the case for 18 months until there was a “sudden change that pulled the plug”.
The official said: “All those eight people gave massive loans, then shortly after they all appeared on No 10’s peerages list. It looked pretty odd, to say the least. Were the Met right to investigate it? Yes, they f****** were.”
Assistant Commissioner John Yates, who led the investigation, is expected to be called this Thursday before the Metropolitan Police Authority, which is reviewing the inquiry. He may be asked to disclose evidence which had led his team and CPS advisers to be so confident.
This is understood to include details of at least three drafts of the working peerage list drawn up by Downing Street aides in September 2005.
Police obtained the document last summer after which Yates told MPs he had uncovered “significant and valuable” evidence not yet in the public domain.
The document revealed that eight people were on an internal peerage list. This was hinted at in the CPS’s formal-document explaining its decision on Friday. It is understood police obtained information on how Levy was involved in supporting names who were to be on the list.
Drafts of the list were then compiled by Turner, John McTernan and Jonathan Pow-ell, Tony Blair’s chief of staff. Detectives also studied e-mails sent during its compilation which referred to the potential nominees’ loans to the party.
The other four who loaned Labour money were ineligible for peerages as they live abroad or had already been ennobled.
Government sources revealed Evans’s diaries were central to the investigation. The Sunday Times has established that there are entries apparently recording discussions between Evans and Levy in 2004. In these meetings, the diaries allegedly explicitly link the offer of a loan to the promise of a peerage. Levy told police he had never made any such offer.
“If those diaries ever get into the public domain, the effect will be spectacular,” said one person who has read them.
Evans’s spokesman said yesterday no such discussion had taken place, adding: “The CPS judgment was crystal clear – there was no evidence of wrongdoing and the CPS explained that in some detail. That is the end of the story.”
Evans himself attacked Labour for abandoning him during the inquiry. Asked if the party had been supportive, he told a Sunday newspaper: “The short answer is no,” adding that some in the party considered him and the others “dispensable pawns”.
Sarah Helm, Powell’s wife, described the early morning police raid on Turner during the investigation as “Gestapo tactics. Pick on the vulnerable, preferably a single woman living alone”.
Additional reporting: Holly Watt
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A diary may not be admissible. Indeed! Jeffery Archer was bought down by the entries in someone else's diary. And he was a lord.
RomansSeja, Billesdon, UK
Stinks! Cash for honours has been abound for many a year but Blair took it a step further appointing someone to the 'list' and 'go and do it'. Why do we have lords and other titles, many which are inherited? How did they come into being? Was it 'services to the country' by providing troops and using slaves in the colonies to generate wealth for some. "We have the best democracy in the world" it is reported many times so why does no other country adopt it? This titled strata continues the class structure which has done damage nough. Let us have an elected upper chamber and maybe we can eventually have a republic before the need overwhelms us.
RomansSeja, Billesdon, UK
It is gross hypocrisy to replace one privileged class in the House of Lords who have served the country well for centuries with another privileged class, one that is sufficiently wealthy to be able to donate to the party. If it is wrong to inherit a seat in the House of Lords then it is equally wrong to be able to buy one, whether or not the promise of ennoblement comes before or after the donation. We might as well reinstate the ârotten boroughsâ so that members of both Houses of Parliament can buy their seats. I am afraid that most members of the public not only believe that honours were given in exchange for cash donations to the party but now also believe that the establishment is behind the CPSâs decision not to prosecute.
David Elliott, Brighton, UK
The electorate should show its contempt for politicians by refusing to vote at the next General Election. Maybe when a government is returned with say 10% of the population voting it will be time to make a fresh start with some new political parties?
Vincent Coles, Forfar,
It stinks. It stinks. It stinks, and everybody knows. Mr Yates did a professional job but he probably knew the establishment would bring it to a halt.
Phil de Buquet, Newport, England
Anyone who thought prosecutions would result from this investigation is naive beyond belief. Short of confessions signed in blood, there was never the slightest chance of Tony's cronies ending up in court.
Neil Turner, Banff, Canada
Maybe it is about time the UK had an independent Anti-Corruption Commission sitting like a permanent Royal Commission with wide ranging powers to subpoena witnesses and admit wiretap evidence as happens in Australia. It is obvious that The Met should not be the body to investigate such misdemeanours and the CPS is too easily leant on. The idea that the Mother of Parliaments and its occupants will always be clean from the stain of corruption is naive to say the least.
Richard Gordon, London, UK
As there is no statute of limitations as far as the law in this country then we better start looking closely at some of the most wealthy and well known families in the land because the vast majority of them obtained their rank and privilege through favours done or money paid. Start about 1067 and work through to 2007. Storms and teacups come to mind
mike gee, bournmeouth, uk
There is a very strong smell emanating from the CPS's decision - an organisation best known for chronic incompetence. Is the smell from a skunk that they have adopted as a mascot?
Gervas Douglas, Andorra la Vella,
The fact that the police inquiry has been halted does not ipso facto prove that no wrongdoing occurred, merely that insufficient evidence was discovered/admissible. As to the recent bleatings from various government figures that it has eroded public trust in the government and parliamentary system it presumes that trust existed in the first place. That a figure as slippery and devious as Levy can possibly believe that any intelligent human being could trust the slightest utterance from him is a supreme arrogance yet unsurprising given the self delusion of so many of our most prominent political figures. Now we are set to witness the rabid assaults of the feral beasts of New Labour supressing the independence of the police force much as they did to the BBC through Hutton. At the same time we are exhorted to support suspension of our rights in the "fight against terror". One law for them another for us.
Ian, Morden, Surrey
by not having a prosecutuion, think of all the legal aid that has been saved!! The CPS rarely prosecute nowadays, and only decide to do so if the see a case without complication, that they believe will end in a guilty plea. Poor old plod !!
steve, birmingham, england
What we need to do is privatize the Honours market. It is a nonsense to have one nationalized industry as the sole monopoly supplier of Honours. We should break up the market into a wholesale and retail sector, as in telecoms. All Honours retailers should be able to buy their Honours on the same terms, and all Honours should be compatible, that is, all give access to the same beneifts, legislative assemblies and so on.
It would after all be foolish to have competitng legislative bodies all with purchased memberships, all making laws. It would lower the price level fearfully.
We should also abolish the absurd prohibition on foreigners being able to purchase Honours.
Finally, we should hand over the regulatory task to the OFT, which is obviously better suited to regulating markets than the Metropolitan Police. No wonder they have failed so badly. I imagine this is DAC Yates first attempt at regulating a market. He is clearly totally unqualified, but that is not his fault.
Frederick DesLauriers, London, England
There was a fine line on the wording of 'tacit agreement' which is required by the Act. Very difficult to prove unless one of the receipients and or one of the government spilled the beans - and short of torture, that was never going to happen. I thought Mr.Yates would have realised that at the outset. The main outcome is that it put the fear of hell in certain people and it won't happen in future, that's for sure.
JohnB, Malaga, Spain
Guilty, guilty, guilty!
Ferrin MacDonald, Birmingham, England
I would like to know why the diary is inadmissible as evidence . This should be explained by David Perry QC. To me the whole affair reeks of corruption and what clinches it for me is the fact that Jack Dromey, the Labour Party Treasurer was not told of these loans. Why not I ask if everything was above board.
Thomas Ralphs, Leigh, England
Its sad how low this country has sunk, MPs with there pop star life styles, they have no respect for the positions they hold, riding roughshod over the electorate, or peasants as some would like to call us, the latest story (cash for honours) will just be buried under another pile of sleaze and forgotten.
The ordinary guy has given up, knowing there vote does not stand for anything, its them and us, and the thems are winning.
DAVID CROCKET, BRADFORD, UNITED KINGDOM
Watch them now try to destroy Yates of the Yard, just like John Stalker.
When they ask you to investigate, they really don't want you to find anything.
Ken Wyatt, Todmorden, UK
Diaries inamissable - a higher form of proof required - evidence of an âunambiguous agreementâ.
It is difficult not to conclude that the CPS bottled out at the very last minute, a hasty retreat from justice helped in no small way by ex-Treasury barrister David Perry QC.
It will interesting to follow the careers of all the participants in the cash-for-honours inquiry!
Malcolm, Dundee,
Details of a plan to start a private prosecution here:
http://www.order-order.com/2007/07/private-prosecution-pledge-support.html
Bishop Hill, Scotland,
Let the C.P.S. or Scotland Yard - or both - publish in its entirety the investigation and reports the one prepared and the other received thus enabling outside but experienced barristers/solicitors who have both prosecuted and defended in our Crown Courts to evaluate the evidence for themselves and to judge whether the decision not to prosecute by the C.P.S. is justifiable: have they courage so to do?
Karm Arger, Sheerness/Kent, U.K.
Whoever heard of people in circumspection getting together and preparing an
âunambiguous agreementâ explicitly stating what has been done with a nod and wink, to be set down in a document and witnessed by a solicitor as a future record of alleged malfeasance?
it's as transparent as the honeymoon being over and wanting an election on the back of it.
tony, london,
These allegations should have been taken to Court and if not proven at least had a fair hearing from an impartial Judge and Jury.
The only man to come out of this sordid affair with honour and integrity is Yates who, despite total non cooperation from people who should know better, doggedly pursued a trail of smoke and mirrors in pursuit of the truth and finally got shafted by a swift goal post change due to one man's arguable assertion.
philip, Ipswich,
[ However, the investigation was effectively halted at a meeting on July 4 when a leading government barrister, David Perry QC, ruled that the diary was not admissible as evidence.
Perry also said the police must have evidence of an âunambiguous agreementâ showing that the financial backers gave money only on the explicit understanding that they would be honoured in return. The CPS announced last week it would not be charging anyone. ]
Whoever heard of people in circumspection, getting together and preparing an
âunambiguous agreementâ explicitly stating what has been allegedly done with a nod and wink, to be set down in a document and witnessed by a solicitor a a record of malfeasance?
Tony Winter, london,
In my opinion the cash for honours scandal is a whitewash to protect Tony Blair Government. Public should demand a fair investigation.
Munna, London, UK.
it is a cornerstone of the legal system to ensure that evidence submitted is admissable. Perhaps, the "inadmissable" diaries should be submitted to a judge to rule on their inadmissability. I smell cover-up.
At the very least, there should be a public enquiry into this whole sorry saga.
imj, Abu Dhabi, UAE
So the CPS have decided not to pursue the "Loans" matter.Yet I(and I'm sure many readers)have a very uneasy feeling about all of this which just won't go away.What's to be done?
H.Ducker, W.s.Mare, N.Somerset
That which is covered will be uncovered...
H E Torrance, London, Albion
A great relief for Tony- It wouldnt have looked to good on his CV to have been hauled before the Bench, It could have seriously diminished his chances, when applying for the Presidency of Europe...
You also point out in the associated article that Perry was involved in (allegedly) legitimising the case for war in Iraq. Another fine mess he has extracted TB from.
t m j Black, Southampton,
Let's face it, there was never going to be a prosecution unless the evidence was 100% crystal clear. There is no way that the CPS would wish to loose such a case. Ultimately, this will all be used as an excuse for State funding of political parties with the long suffering British people having to pick up the additional taxation.
Peter Hargreaves, Stockport, Cheshire, England
Any further enquiry should be taken from MP,s. I agree with the previous comment. Have this tested in the civil courts where far more information can be placed before the electorate - and not with a public enquiry cover up either. It seems to me that politicians have stopped treating the public with contempt - they now treat us as beneath contempt.
Richard, Newcastle,
it is clear that the police believed that there was widespread corruption. If the CPS is dgoing to retain any credibility over this squalid affair they should publish the information that the police based their case upon and explain more thoroughly why a prosecution was ruled out.
Tim, Stamford, UK
A deterioration in the integrity of our courts? Looks as if the effects of our foreign policy, hand in hand with the USA seems to be filtering into our justice system. Whats next I wonder as the saga continues...
Farrukh, Woking,
I will not be surprised if the executive of the CPS are the recipients of future honours.
Tony G, Harrogate, UK
Quite clearly David Perry is corrupt and if he is not, let him sue me. The crown prosecution service is corrupt as is the government. As far as I am concerned there no longer is arule of law in this country.
Steven Katirai, Ncl / Tyne,
Did they have a list of people to reward, in breach of statutes? Yes. Can that list be produced in Court? Not according to one QC.
No wonder the jails are having to be emptied early when the people who are in jail may have broken laws, but their real mistake was in not appointing the CPS who will one day decide if the PM can be charged.
Is there a correlation between this weasily double speak and low turnouts in elections? You bet your life there is!
Frank Keegan, Alderley Edge,
Industrious though our police were, anybody who thought members of the government would be brought to trial is extraordinarily naive.............
john problem, london,
Initially, those involved in the investigation didn't complain about the police, we now find that they're beginning to attack the police's role.
An allegation was made, the police investigated, whats wrong with that. Terror suspects have to put up, with being investigated, whether they are guilty or not. Are they thinking that they, should be above the law?
The general public knew that it was unlikely to see any prosicutions, but the police din't say they was no evidence, only insufficient evidence!
polly, newcastle,
These few evil thugs have made Britain a State formally ruled by a gang of crooked thugs. Police, CPS, Courts and Executive are no more than mere puppies of the evil politicinas who in the Uk are worse than Hitler.
Vicitm, Lon don, Nazi
The whole affair stank because it became, quite simply, a media witch hunt which the late and unlamented Senator McCarthy would have been proud to join. Let`s be clear there were too many in the press who just wanted to `get at Blair` irrespective of any investigation or reasonable look at the evidence. Now the cry `stinking fish`. Perhaps they should realise that the smell comes from them
phil, market drayton, uk
This decision stinks !
Better for a judge and jury to decide what is admissible.
It is clearly in the interests of justice and the public interest that this matter be aired in a court.
The alternative is that the smell will linger on and those arrested will be for ever tainted with suspicion and denied their opportunity to be found innocent by a jury.
tony cave, london, UK
The CPS have never stated that the suspects had not committed any offences, i.e. were "Not Guilty ."
Just that there was an unrealistic prospect of conviction if prosecutions were undertaken .
There is the difference.
Tony Cocks, Plymouth, UK
What is needed is for a wealthy person to finance a private prosecution and demand all the evidence that the police have by way of a court order if necessary. By pass the CPS and let a jury decide.
Kevin, Birmingham, United Kingdom
The sudden decision by CPS not to pursue a prosecution smells to high Heaven! It is in the public's interest to have ALL documents relating to the investigtation made public. Certainly it would be in the best interests of all concerned. For any to oppose openess would only serve to make them appear guilty.
David Perry QC, ruling that the diary was not admissible as evidence was more than the usual nitpicking that has destroyed the justice system. Ignoring the supporting evidence out of hand makes the CPS appear to be a participant along with others who were under suspicion.
Bob Evans, Anaheim, California