Labour names 12 behind secret loans

LONDON - Prime Minister Tony Blair’s Labour Party on Monday released the names of 12 supporters who secretly loaned almost $25 million to the party.

Blair was criticized after nominating at least three of those who made sizable secret loans to the House of Lords, but has denied allegations that he made the nominations in exchange for loans, saying they were all well-qualified.

The prime minister also has come under criticism for keeping the loans secret even from other senior Labour officials, including the party’s treasurer and the deputy prime minister.

Under current campaign finance law in Britain, only gifts to political parties must be made public – not loans. But Lord Falconer, the head of Britain’s judiciary, said parties will have to disclose all future loans.

“People are very concerned about funding of political parties right across the political spectrum,” Falconer, the Lord Chancellor, told the British Broadcasting Corp. “We are going to make it compulsory for all political parties to disclose any loans they get.”

Conservative leader David Cameron said all loans other than those from commercial institutions should be banned and donations from individuals, unions, companies and institutions should be capped at $88,000.

At least three of the Labour Party lenders – health care chain founder Chai Patel, financier Barry Townsley and property developer David Garrard – were nominated to the House of Lords. The men all loaned $1.8 million or more.

Blair’s official spokesman, who speaks on condition of anonymity in keeping with government policy, said the government would review political party funding.

© Copyright 2006 Union-Tribune Publishing Co.