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British prosecutors began considering on Friday whether to charge close allies of Tony Blair in a political corruption scandal that has further sullied the prime minister's reputation in his last days in office.
Detectives have been investigating since March last year whether political parties nominated people for state honours that come with seats in parliament's unelected upper house, the House of Lords, in return for cash.
Police sent their case file to prosecutors on Friday after interviewing 136 people as witnesses and suspects. Blair has been questioned twice as a witness, the first serving prime minister to be quizzed in a criminal investigation.
"It is now a matter for the CPS (Crown Prosecution Service) to consider the evidence, advise us on whether any further enquiries are necessary and whether any charges should be brought," London's police said in a statement. The probe has cast a shadow over the final months of Blair's premiership, compounding a loss of trust in his government.
Anger over the Iraq war and disillusionment with almost a decade of Blair's government has eroded the prime minister's popularity and support for his Labour Party. He is expected to announce his resignation after May 3 elections for local councils, the Scottish Parliament and Welsh Assembly and leave office in late June or July. Labour is expected to get a battering at the polls.
POTENTIAL COVER-UP: The CPS said the file would now be reviewed "to determine whether any individuals should be charged with any offences". A CPS spokesman said prosecutors would consider the evidence "for as long as it takes".
"This is an enormously significant development. It confirms the scale of the case to answer in the 'cash for honours' scandal," said Angus MacNeil, the lawmaker from the Scottish National Party who triggered the probe by complaining to police.
Charges against close Blair aides in the cash-for-honours affair would be an embarrassing legacy for a leader who pledged to strip corruption out of politics.
But analysts say the brunt of the damage is done and they do not expect any charges to change the timetable for Blair's exit. Detectives in past months broadened their inquiry to probe whether members of Blair's inner circle sought to conceal evidence from police.
Two close Blair aides are among three people who remain on police bail and both are under suspicion of taking part in a cover-up. All those questioned in the probe deny any wrongdoing. Lord Michael Levy, Blair's chief fundraiser and Middle East envoy, has been arrested twice, the second time in January on suspicion of conspiracy to pervert the course of justice.
Levy's spokesman said he had no comment. In March, Levy branded as inaccurate media reports that he had asked a second Blair aide, Ruth Turner, to "shape" her evidence. Turner, Blair's director of government relations and referred to as his "gatekeeper", was also arrested in January on suspicion of perverting the course of justice.

Copyright Reuters, 2007

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