Tory takes Labour to task over donor

Published on Thursday 7 March 2002 00:00

TOP Tory Michael Howard today poured scorn on the government’s claims that its approach to the Belgian authorities over criminal investigations into Labour donor Lakshmi Mittal was normal practice.

It emerged this morning that the Home Office took the extraordinary step of trying to obtain details of the inquiry by the Brussels public prosecutor into the affairs of the Indian billionaire at the centre of the "Steelgate" controversy.

The Belgians are investigating money laundering and bribery allegations surrounding a deal by Mr Mittal for a 39 million pipeline contract in the corrupt former Soviet republic of Kazakhstan.

Labour is already under fire over Prime Minister Tony Blair writing a letter in support of a bid by a Mittal company to take over the Romanian steel industry.

Mr Mittal gave the Labour party 125,000 before the last election.

The Belgians were stunned when the Home Office asked for details and rejected the request.

Spokesman Joseph Colpen said he had never seen a letter like this in 26 years and accused the government of acting like a "lawyer or personal adviser" to Mr Mittal.

The Home Office said this was routine to make such inquiries in respect of a British citizen being investigated before.

Shadow Chancellor Mr Howard said in his time as Home Secretary he had never come across such an approach.

He said: "I can’t recall a single example of this. The Home Office says its routine to make this inquiry on behalf of a British citizen. Mr Mittal is not a British citizen.

"We must have a public inquiry into the government’s link with Mr Mittal."

Mr Mittal’s firm in Romania is alleged to be in competition with British steelmakers such as Corus, which is making people redundant because of financial problems.

It is alleged that his companies employ just 100 people in Britain and thousands overseas.

One of his firms in America played a key role in lobbying US President George Bush to impose heavy import tariff on foreign steel including British products.