The Conservative Party treasurer, Mr Michael Ashcroft, is to issue a writ for libel against the Times of London following articles about his business interests in Belize and donations to the party amounting to £3 million (stg).
In an `open letter' to the editor of The Times, Mr Peter Stothard, in today's editions, Mr Ashcroft says: "I am this afternoon issuing a writ against you, your employers and two of your journalists."
The Conservative Party yesterday denied claims that Mr Ashcroft was linked, in a US Drug Enforcement Administration report, to drug trafficking. The party leader, Mr William Hague, has vowed not to allow people to be "driven from positions in the party by smear and innuendo."
Mr Ashcroft has also repeatedly denied the allegations, stressing that he has never been involved in drug trafficking or money laundering: "My business affairs are entirely proper and no amount of smear, rumour, or innuendo will alter that fact."