Businessmen ‘gave loans for peerages’

THE BRITISH honours system is expected to be changed following disclosures that funds and loans have had been paid by wealthy businessmen to secure appointments to the House of Lords.

The controversy centred around a claim by the treasurer of the Labour Party, Jack Dromey, that he was "kept in the dark" about large sums of money that were paid by the businessmen who were seeking to become peers.

British Prime Minister Tony Blair has admitted he knew of the loans from donors as Labour leader, but had not passed the information onto the body that vets potential peers.