Blair’s chief fundraiser quizzed by police

TONY BLAIR’S chief fundraiser was last night interviewed by police in connection with Scotland Yard’s cash for honours inquiry.

Lord Michael Levy was questioned when he answered bail at a police station in London.

He was re-bailed following questioning pending further inquiries.

Lord Levy, who plays tennis with Mr Blair and is nicknamed ‘Lord Cashpoint’ for his role in raising party funds, has repeatedly denied any wrongdoing.

His spokesman said last night: “Lord Levy returned as requested to meet the police today to help them with their ongoing investigation.”

A Scotland Yard spokeswoman said: “A man who was arrested in July in connection with the investigation came back on bail today.

“He was interviewed and has now been re-bailed.”

Police later said a third person had been arrested.

The British Prime Minister’s Middle East envoy was first arrested in July in connection with the investigation into whether peerages were offered in return for financial support to parties. He was later released on bail, pending inquiries.

There were calls at the time for him to be sacked as the prime minister’s personal representative in the Middle East, despite not having been charged with any offence.

At the time there was also widespread speculation that Mr Blair himself may face questioning over allegations that Labour-supporting millionaires were nominated for peerages in return for making massive loans to the party in the run-up to last year’s general election.

Lord Levy, who does not draw a salary but has an office in the Foreign Office, had been keeping a low profile following his arrest but in August he appeared to resume his duties when he met Israeli government ministers.

Earlier this month he accompanied Mr Blair on his visit to the Middle East.