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Tuesday, December 29, 1998 Published at 11:03 GMT


UK Politics

Home-a-loan scandal: Unanswered questions

The loan for the £475,000 has raised many questions

One week after it was revealed Cabinet minister and new Labour architect Peter Mandelson had taken a secret loan from a colleague, glaring questions still remain unanswered.


[ image: Peter Mandelson is trying to clarify his mortgage application]
Peter Mandelson is trying to clarify his mortgage application
The scandal surrounding one minister borrowing £373,000 from another to buy a luxury house in a fashionable London suburb has already cost the government two scalps in Labour's biggest crisis to date.

But the continuing media interest into the former trade secretary's low interest loan from tycoon Geoffrey Robinson has raised more questions than it has answered.

  • Did Mr Mandelson declare the loan from Mr Robinson on his Britannia Building Society mortgage application form?

    Mr Mandelson could have been legally obliged to mention the loan from Mr Robinson when applying for the mortgage. Speaking shortly after resigning, the former minister said he failed to recall what he had said on the form, but had never intended to mislead anyone.

    Since then it has been alleged Mr Mandelson did not sell his former home in Clerkenwell until three months after he bought the £475,000 Notting Hill mansion. That would mean he was paying two mortgages despite earning only about £40,000 at that time.

    Mr Mandelson has since written to the building society to clarify what he wrote on his application form, but has made no further public comment to clarify the matter.

  • Should Mr Mandelson have declare private flights paid for by a US tycoon?

    Tories are planning to draft a complaint to the Parliamentary Commissioner for Standards over five free flights Mr Mandelson took in a private jet.

    Lingerie millionaire Linda Wachner, who is behind the former minister's free flights, describes Mr Mandelson as a friend.

    His office says the flights should not have been declared as they had nothing to do with his role as an MP or minister.

  • Did the paymaster general offer loans to other Cabinet ministers? If so, who?

    Newspapers from Rupert Murdoch's News International stable have claimed Mr Robinson offered home loans to three other Cabinet members.

    The Sunday Times quoted an anonymous minister as saying he had been offered a cheap loan, which would implicitly be repaid by loyalty to Chancellor Gordon Brown.

    So far, no firm evidence of this has been offered, nor has any publication sought to name the ministers allegedly approached by the former paymaster general.

    Conservatives are also asking whether the millionaire MP also funded Gordon Brown's team in opposition.

  • Who will be the new paymaster general?

    Within hours of Mr Mandelson resigning his successor had been announced as the Blairite Stephen Byers.

    However, Mr Robinson's replacement has yet to be announced.

    Mr Robinson finally resigned after months of opposition MPs calling for him to quit over his business affairs, which would have given the prime minister plenty of time to consider a successor.

    Two reasons are offered for the delay. First, the man widely tipped to replace Mr Robinson, Geoff Hoon, is a Blairite and could be opposed by Chancellor Gordon Brown and others at the Treasury.

    Secondly, Mr Robinson drew no salary for his government work. A successor would have to be paid and the budget for ministerial salaries is believed to already be stretched.

  • Who was behind the leak?

    Another key question that remains unsatisfactorily resolved.


    [ image:  ]
    The secret loan from Mr Robinson to Mr Mandelson two years ago features in the first chapter of Mirror journalist Paul Routledge's hostile biography of the former trade secretary.

    The Guardian, who broke the story, claim they obtained details of the loan from an independent source.

    Some have suggested sources close to Mr Mandelson may have leaked the story, although given the consequences that is unlikely.

    The main culprit according to the press is Charlie Whelan, Gordon Brown's press secretary, although he has denied anything to do with the leak.

  • Will Charlie Whelan survive?

    The Sun says Mr Whelan is doomed for damaging the government's infrastructure.

    "The government will not be held to ransom by one little oik," reads the headline on Monday's front page.

    Even if he was not behind the leak, many believe Mr Whelan must walk to save the integrity of his boss Gordon Brown and put an end to ministerial in-fighting.

    He has clung on so far, but many believe his days are numbered.



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