LONDON (Reuters):
BRITISH POLICE said yesterday they were investigating Prime Minister Tony Blair's Labour party in response to complaints related to the country's age-old honours system.
"The Metropolitan Police Service has received three complaints about the Labour Party under section one of the Honours Act 1925," the police said in a statement. "These allegations are being investigated by the Specialist Crime Directorate."
It was not immediately clear who had made the complaints or what the implications of the probe might be.
Labour has come under fire for accepting loans from business-men, some of whom were later proposed for honours in the form of seats in the Upper House of Parliament.
The party has responded by insisting it has not broken the rules on party funding.
Most big political parties in Britain depend on loans and Blair did not break any law by not declaring them. Under current rules, only donations to parties have to be made public.
What irks some Labour lawmakers is that their party treasurer and some senior ministers did not know about the £14 million (US$25 million) received in loans.
Labour responded to the furore on Monday by publishing the names of 12 businessmen who all loaned the party between £250,000 and £2.3 million each.
It also urged the opposition Conservatives to do the same - something they have so far refused to do.
Instead, the Conservatives have called for a wholesale review of the way British political parties are funded.
