Inquiry clears Mandelson of any wrongdoing

Mr Peter Mandelson has been cleared of lying or wrongdoing in the Hinduja passport affair, yet finds the door firmly shut against…

Mr Peter Mandelson has been cleared of lying or wrongdoing in the Hinduja passport affair, yet finds the door firmly shut against his return to Mr Tony Blair's government.

As critics branded the official report on the affair a "whitewash", the Prime Minister last night faced a growing chorus demanding that he explain why Mr Mandelson - once his most trusted ally - resigned in the first place.

Just five weeks after his enforced resignation as Northern Ireland Secretary, Mr Mandelson yesterday claimed vindication as Sir Anthony Hammond's report concluded:

that he did not make representations on behalf of either Mr S.P. or Mr Prakash Hinduja.

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that while it was "likely" that Mr Mandelson did phone the immigration minister, Mr Mike O'Brien, about Srichand Hinduja's naturalisation bid, his belief that he had not such a phone conversation "was honestly held".

that in his initial answer to inquiries from the Observer there was no evidence "that Mr Mandelson was seeking to be evasive".

that there was no evidence of any improper link between him and the Hindujas, or of any connection between his contacts with them in connection with their £1 million sponsorship of the Dome and their efforts to obtain naturalisation.

Sir Anthony's report also cleared the Foreign Office Minister, Mr Keith Vaz, of any improper relationship with the brothers.

"Sir Anthony's report established that I did not lie, I did not deceive and I did not set out to mislead," declared a relieved Mr Mandelson outside his Hartlepool constituency home, as he apologised for his part in what had been "a muddle rather than a misrepresentation".

He continued: "I intend to concentrate on winning back the full trust of my Hartlepool constituents and serving in parliament for another term. For reasons I hope people will understand I do not desire to return to government."

But there was more confusion and doubt than understanding as Mr Blair spoke of his regard for Mr Mandelson's "immense ability and indeed integrity" while seeming to indicate that his friend's fall from grace would be permanent. Speaking in Scotland, Mr Blair said: "Peter has made it clear and I have made it clear that there is no question of him coming back into government."

Nor, it appeared, was there any question of an apology from the Home Secretary, Mr Jack Straw, who had originally accused Mr Mandelson of telling "an untruth" about the disputed phone call to Mr O'Brien.

In a markedly cool response Mr Straw said: "This affair has been a personal tragedy for Peter Mandelson. Having worked closely with Peter over many years I have always had the highest respect for him as a colleague and friend."

While Sir Anthony decided it was not his function to examine the events inside No 10 which led to Mr Mandelson's resignation, his report reveals that the Cabinet Secretary, Sir Richard Wilson - stung by suggestions that he joined the Prime Minister's press secretary, Mr Alistair Campbell, and the Lord Chancellor Lord Irvine in a "kangaroo court" - had actually advised Mr Blair not to get "too involved" in the controversy.

As Ms Ann Widdecombe spoke of the report leaving "a nasty smell" about the government, the Conservative leader, Mr William Hague, said: "This whole bizarre chain of circumstances would never have happened at all had the Prime Minister not reappointed Peter Mandelson to the cabinet just 10 months after the first occasion he had to resign in disgrace."

The full text of the Hammond inquiry report is available on the Irish Times website at www.ireland.com