Four set to face charges over expenses scandal

Published on Tuesday 24 November 2009 00:21

POLICE investigating allegations of expenses fraud in Westminster yesterday referred four politicians to the Crown Prosecution Service (CPS).

The Metropolitan Police have handed files on the four to officials at the CPS. Last week, six politicians, including Scottish Labour MP Jim Devine, were believed to be under investigation by Scotland Yard. In a statement yesterday, the CPS said a "small number" of other cases, on top of the four, remained under investigation.

The CPS last night said decisions on whether to bring charges against all or any of the four would be made "as quickly as is reasonably practical".

None of the parliamentarians concerned have been named by the police, although recent media reporting has concentrated on the six individuals.

They include the Labour MPs Elliot Morley and David Chaytor, who each claimed thousands of pounds in second home allowances for so-called phantom mortgages, which had already been paid off.

Mr Devine, the Labour MP for Livingston, has reportedly been under investigation over invoices he submitted for electrical work worth 2,157 from a company with an allegedly fake address and an invalid VAT number. He has consistently denied any wrongdoing.

Detectives from Scotland Yard reportedly made several trips to Mr Devine's constituency to interview witnesses. After the row over his expenses erupted, Mr Devine was forced to appear before Labour's "star chamber", which was set up to investigate MPs accused of expenses abuses.

It ruled that Mr Devine should be banned from standing as a candidate at the next general election, although he remains an MP.

The Labour peer Baroness Uddin is facing allegations that she claimed 100,000 in allowances by registering as her main home a property in Maidstone, Kent, that was reportedly barely occupied.

Another Labour peer, Lord Clarke of Hampstead, a former party chairman, has admitted his "terrible error" in claiming up to 18,000 a year for overnight subsistence when he often stayed with friends in London or returned home to St Albans in Hertfordshire.

Lord Hanningfield, the Conservative peer who is leader of Essex County Council, was reported to be under investigation over whether he was returning to his home while claiming allowances totalling 100,000 over a seven-year period.

Scunthorpe MP Mr Morley, who is quitting at the next general election, was also being investigated by a sleaze watchdog. But he has previously said he expected to be cleared of any deliberate wrongdoing as he had found evidence that his lender did not give him the type of mortgage he asked for.

Mr Morley's second large repayment, which he made on 3 June, was among those on a long list of sums returned voluntarily to the taxpayer published by Commons authorities.

The watchdog was called in when it was revealed that the MP had continued to claim for mortgage payments – totalling 16,800 – after the loan had been paid off. Mr Morley last night said he did not know whether he was among the four cases referred to the CPS. "I have heard absolutely nothing. I have no idea where this story has come from," he said.

Asked if her case was among those involved, Baroness Uddin said: "I could not possibly comment." None of the other four could be contacted for comment.

Keir Starmer, the Director of Public Prosecutions, must now decide whether there is a realistic chance of securing convictions and what charges, if any, he should bring. Potentially, the four parliamentarians could be prosecuted for fraud or false accounting, with maximum penalties of seven or ten years.

A CPS spokesman said: "Any decisions on whether or not there should be any charges in relation to these files will be made as quickly as is reasonably practical. Since a number of other cases in relation to parliamentary expenses are still under investigation, it would be inappropriate to comment any further at this stage."

A Met spokesman said: "The Metropolitan Police Service has today delivered four main files of evidence relating to parliamentary expenses to the Crown Prosecution Service.

"The files relate to four people, from both the House of Lords and the House of Commons, and will now be subject to CPS consideration on whether there should be any charges."

THE ALLEGATIONS

Elliot Morley, more than 16,000 for a paid-up mortgage.

David Chaytor nearly 13,000 for paid-up mortgage.

Jim Devine invoices worth 2,157 from an allegedly fake company.

Baroness Uddin allegedly claimed 100,000 for property she barely occupied.

Lord Hanningfield 100,000 London allowance, despite living 46 miles away.

Lord Clarke up to 18,000 a year for overnight living, while often staying with friends.