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UK Conservative party secret loans to keep details from police
*** The main "opposition" party in the UK has hurriedly paid back millions of pounds of secret loans to prevent the police and the public from discovering the truth during an investigation into widespread criminal corruption within British politics. Many people privately suspect that the cover-up involves businessmen who have made "donations" or "loans" shortly before benefitting from key decisions, such as planning permission, in local authorities controlled by the party, and in key votes in parliament affecting law and government policy. ***
Tories publish unpaid loans list
The Conservative Party owes £16m to 13 wealthy supporters who helped bankroll its election campaign.
But the identity of backers it has repaid - including a number of foreign nationals - will remain secret.
The party also revealed it has a £16m bank loan secured on property and £4.7m loaned from local Tory associations - making total debts of about £37m.
The biggest individual lenders are ex-party treasurer Lord Ashcroft, with £3.6m, and Lord Laidlaw with £3.5m.
The party had been under pressure from the Electoral Commission to reveal details of the loans after Labour revealed it had been lent nearly £14m ahead of last year's election.
Unveiling the list, Conservative Chairman Francis Maude said: "It is perfectly proper for people to make loans to us on commercial terms."
Foreign lenders
But he said it would not have been fair to reveal the identity of lenders "without their permission" and it had been contacting them in the past few days to seek that permission.
"We have also repaid around £5m to lenders who did not wish their names to be disclosed," he added.
These are thought to include foreign nationals - but Mr Maude hit back at suggestions it had gone against the spirit of the party funding rules which ban foreign donations.
"It is perfectly legal to borrow money from overseas sources as long as it is on commercial terms. It is irrelevant," Mr Maude told BBC News 24.
Mr Maude insisted the Conservatives had done nothing wrong and that Labour had been "much less transparent about this whole process than we have".
'Very proud'
For example, Labour had not revealed if it had repaid any of its loans or anything about its outstanding debts, he said.
Mr Maude said he was "very proud" of the people who loaned money to the Tories and they had not supported the party out of "self-interest".
The party revealed it had borrowed nearly £16m from a bank to buy the freehold on its former headquarters in Smith Square which, together with the next door property, it says is worth £30m.
The party said it had no overdraft at the bank.
Labour has provided a full list of lenders and has been pressing the Conservatives to do the same.
Police investigation
Tory leader David Cameron is seeking a meeting with Tony Blair on Monday to discuss party funding. He also called for a cap on political donations.
The party is also announcing all donations it has received since Mr Cameron became leader last year.
The announcements come after it emerged the police investigation into "cash for peerages" allegations had been widened.
The Metropolitan Police said the inquiry, which initially focused on Labour, had become a cross-party probe.
It refused to say which parties were being investigated but it has emerged that Labour MP Rosemary McKenna has asked the force to look at the Tories too.
It is understood Scotland Yard's specialised crime directorate is also looking at claims about at least one other party.
Amid pressure to show the source of up to £25m in loans, the Conservatives have been approaching lenders to ask if they can make their names public.
SOURCE
BBC News, "Tories publish unpaid loans list", 31 March 2006.
http://news.bbc.co.uk/1/hi/uk_politics/4865468.stm
"The Insider" mailing list article, 31 March 2006.
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