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http://www.bloomberg.com/apps/news?pid=20601102&sid=ae70tf73d6xU&refer=uk

U.K. Police Quiz Lord Levy Again in Cash-for-Honors Probe

By Gonzalo Vina and Robert Hutton

Sept. 20 (Bloomberg) -- Police investigating whether Britain's ruling Labour Party exchanged honors for loans have for a second time questioned Michael Levy, a Labour member of the House of Lords.

Michael Levy, Labour's chief fundraiser, was arrested on July 12 and questioned by police. He denied any wrongdoing and wasn't charged.

``A man who was arrested in July came back on bail today, was interviewed and re-bailed,'' London's Metropolitan Police said in a statement. Levy was not arrested today.

Since 1997, everyone who has donated more than 1 million pounds ($1.9 million) to Labour has been made either a knight or a member of the House of Lords, according to the Power Inquiry, a probe into changes in U.K. democracy funded by the Joseph Rowntree Charitable Trust, a Quaker charity campaigning for social justice. The report was published in February.

David Sainsbury, a member of the U.K.'s House of Lords and parliamentary under secretary of state at the Department of Trade and Industry, and Ian McCartney, a former Labour Party chairman who is now minister of state at the DTI, were among 48 people the police have spoken to, spokesmen for the ministers said on July 14.

After nine years in office, Blair is facing increasing hostility from Labour members of Parliament as the ruling party grapples with the police investigation and how to replace him when he retires.

Last Updated: September 20, 2006 13:36 EDT


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