Hinduja passport scandal report published

The facts behind the resignation of Peter Mandelson are to be revealed.

The Hammond Inquiry report into the Hinduja passport affair is to be published.

Leaks suggest it will clear Mr Mandelson of wrong-doing, while painting a picture of chaos and confusion at Downing Street.

Former Treasury solicitor Sir Anthony Hammond QC was charged by Tony Blair with investigating the circumstances surrounding the granting of an application for British citizenship to Indian businessman Srichand Hinduja.

Mr Hinduja approached Mr Mandelson in 1998, asking him if he could find out how his application was progressing, and the then Minister without Portfolio passed on his query to the Home Office.

Mr Mandelson quit in January after accepting he should have made clear that he personally telephoned immigration minister Mike O'Brien about Mr Hinduja, rather than saying only his office had been involved.

Whatever its conclusions, the report has the potential to seriously embarrass Mr Blair.

If Mr Mandelson is shown to have helped Mr Hinduja - a £1m donor to the Millennium Dome for which he then had responsibility - it will add weight to Tory claims that Labour has allowed a crony culture to develop in the Government.

But if Mr Mandelson is cleared of wrong-doing, it will suggest his resignation was sparked by panic within 10 Downing Street.

The report was received by No 10 when Mr Blair was in Northern Ireland for Ulster peace talks.