Levy rearrested in honours probe

Tuesday 30th January 2007 at 00:00

Labour fundraiser Lord Levy has been rearrested on suspicion of conspiracy to pervert the course of justice.

The peer, who is also the prime minister's special envoy to the Middle East, was rearrested on Tuesday and later released on bail.

It was the second time he has been arrested by Scotland Yard detectives investigating the 'cash-for-honours' affair.

A spokesman for the peer said: "Lord Levy went to the police station today as asked. He was interviewed again.

"He completely denies any allegations of wrongdoing whatsoever.

"He left the police station in the early afternoon and since there is a continuing investigation he will not make any further comments at this time."

Lord Levy was detained when he answered bail for alleged breaches of the Honours (Prevention of Abuses) Act 1925 and Political Parties, Elections and Referendums Act 2000.

A police statement said he has now been bailed pending further enquiries.

Last week it emerged that John McTernan, the prime minister's political operations director, was interviewed under caution for the second time.

That news came just days after it was revealed that another Number 10 aide, government relations director Ruth Turner, was arrested by police officers conducting the investigation.

Tony Blair was then forced to give his backing to Turner, saying in a statement: "Ruth is a person of the highest integrity for whom I have great regard and I continue to have complete confidence in her."

Downing Street has also previously dismissed claims that its employees have perverted the course of justice, saying officials had "fully co-operated with the police throughout the investigation and will continue to do so".