LONDON - Police opened an investigation Tuesday into allegations that Prime Minister Tony Blair sold seats in the House of Lords in exchange for secret loans to his governing Labour Party, another twist in a political furor that has prompted calls for Blair to leave his job.
Public trust in Blair has taken a pummeling in the week-and-a-half since the loans became public, adding new weight to long-standing charges that those who support Labour financially are frequently nominated for peerages in the Lords or titles like knight, dame and Commander of the Order of the British Empire.
Blair says he has not made such nominations in exchange for party funding and that all his Lords nominees are well-qualified for seats in Parliament's upper chamber.
However, the party has acknowledged it accepted and did not disclose loans of almost $25 million from 12 supporters. Four of the 12 were nominated for a seat in the House of Lords, although three later withdrew their names.
http://news.yahoo.com/s/ap/20060321/ap_on_re_eu/britain_loan_scandal