UK party funding probe ends without charges

LONDON, July 20 (Reuters) British prosecutors announced today they would not file charges after a 16-month police inquiry into alleged political corruption that overshadowed former prime minister Tony Blair's last months in office.

The decision is a boost to the ruling Labour Party and to new Prime Minister Gordon Brown.

The probe into party funding tarnished Labour's image and some analysts believe it contributed to pressure from the party for Blair to step down early last month after a decade in power.

''I have decided there is insufficient evidence to provide a realistic prospect of conviction against any individual for any offence in relation to this matter,'' Carmen Dowd, a top official at the Crown Prosecution Service, told reporters.

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.

Blair was questioned three times as a witness, the first serving prime minister quizzed in a criminal investigation.

He was one of 136 people interviewed in the probe which expanded to examine whether there had been a conspiracy to obstruct justice.

Blair, now a special envoy for Middle East peace mediators, said he had always expected the probe to end in this way.

''Those involved have been through a terrible, even traumatic, time,'' he said in a statement. But he said the police were right to carry out a thorough investigation.

POLICE CRITICISED Some politicians have criticised the length of the probe, which cost around one million pounds (2.05 million dollar).

John Yates, the police officer in charge, defended police, saying the investigation had to be ''thorough and meticulous''.

Two former Blair aides and a Labour Party donor arrested during the probe said they were relieved at the outcome. All three had been bailed without charge and denied wrongdoing.

Lord Michael Levy, Blair's former chief fundraiser who had twice been arrested, said he had been disappointed by ''misleading'' media leaks during the investigation and he said he hoped the probe would not put people off politics.

Ruth Turner, a former top Blair aide arrested in January on suspicion of perverting the course of justice, said it had been a very stressful time. ''I am now looking forward to getting on with my life,'' she said in a statement.

Labour donor Christopher Evans, head of a biotech firm, said he believed he became embroiled because one of the witnesses had wrongly alleged that Evans was expecting an honour.

Brown, speaking in Paris before the announcement, said he hoped the prosecutors' decision would end months of speculation.

''We should move ahead to try and get a better system of political funding in our country,'' he said after talks with French President Nicolas Sarkozy.

The decision is good news for Brown, who has taken the lead in opinion polls since replacing Blair and whose party held on to two parliamentary seats in by-elections yesterday.

The funding scandal led to a drop in donations to Labour and Brown must rebuild party finances before the next general election, which is expected in 2009 but could be held sooner. It also fuelled calls for reform of the House of Lords.

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