19/04/2006

Lord Falconer to be questioned over party funding

The Lord Chancellor will be questioned by MPs over funding for political parties in the wake of the 'cash for honours' debacle.

Lord Falconer will be questioned by the Commons Constitutional Affairs Committee, which has launched an inquiry into the way parties are funded.

The Metropolitan Police are already investigating the 'cash for honours' row. The investigation was launched after it emerged that the Labour party had received a number of secret loans to help finance their General Election campaign last year. Four of those businessmen who lent them money last year were subsequently nominated for peerages. However, their names were blocked by an independent watchdog, along with a Conservative nominee who lent the party £2 million.

The police investigation, which is being led by Deputy Assistant Commissioner John Yates, has been widened to cover other political parties.

The Commons Public Administration Committee is also conducting an inquiry into the affair.

(KMcA)

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