16 July 2006

"aussie tony" fingered ..... 

‘Downing Street was last night plunged into panic amid claims Lord Levy had pointed the finger of suspicion at Tony Blair following his arrest over the 'cash-for-peerages' inquiry.

In an emergency summit with party chairman Hazel Blears following his arrest last week, Levy insisted he would tell everything he knew about Labour's secret loans operation, even if his revelations propelled the Prime Minister further into the spotlight.

Scotland on Sunday understands Levy's police statements will make clear Blair was central to the campaign to secure multi-million-pound loans from supporters, and that he was well aware the transactions could look politically questionable.

The party hierarchy is now terrified Levy's evidence will bolster attempts to establish a crucial link between the operation to sign up 10 secret loans worth £14m for party coffers, and the decision to nominate four of the lenders as Labour peers.’

Downing Street Panics As Levy Points Finger At Blair

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