"Britain's loans furore spirals
26/03/2006 12:02  - (SA)  
London - An Australian-born financier loaned Britain's Conservative Party more than £2.5m, British newspapers reported in their Sunday editions.

The Sunday Telegraph said that Michael Hintze loaned the party £2.5m, and The Observer newspaper reported the Conservatives had another foreign-born benefactor in Swedish sports-equipment tycoon Johan Eliasch, who they said loaned the party £1m.

Both papers quoted Hintze as saying that he supported the party ""because I can, and because the law allows me to do so.""
Eliasch declined to comment to the Observer, saying that his financial dealings with the party were in strict accordance with the law.
The revelations come as Britain is embroiled in a furor over political loans.

British law forbids donations from foreign sources, but the law does not cover loans to political parties. Loans to political parties do not have to be declared to the country's Electoral Commission, while gifts must be disclosed.
Eliasch became a British citizen three years ago, according to The Observer; Hintze has dual Australian and British nationality.

A Conservative spokesperson said the party had no comment to make about the reports. The party has been urged to reveal who their supporters are. Party treasurer Jonathan Marland has said that he is not willing to divulge the names of people who lent money under condition of anonymity.
Two legislative committees have announced investigations into claims that Prime Minister Tony Blair's Labour government offered honors - including seats in the House of Lords - in return for large loans to the party.

Labour has acknowledged it accepted nearly £14m in previously secret loans from a dozen wealthy supporters, of whom at least four were nominated to the House of Lords.

The government denies wrongdoing, and has since proposed that all parties be required to disclose funds raised through loans.

Also in Sunday's editions were stories which said a company founded by two property developers who lent large sums to Labour benefited from planning decisions made by Britain's deputy prime minister.
Prescott has said that he did not know about the series of loans to Labour. A spokesperson in his office told the Telegraph that the deputy prime minister did not grant planning permission to the property developers, saying that was done by the local government authority.
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