SENIOR Labour Party figures have ordered an inquiry into allegations of bribery against the new Scottish MP, Mr Mohammed Sarwar.
The leadership acted swiftly yesterday to extinguish the first sleaze allegation since the party won power. The party general secretary, Mr Tom Sawyer, vowed the investigation would "leave no stone unturned" and Labour would not hesitate to act if there was any evidence of wrongdoing. The panel will include three members of the National Executive Committee as well as party officials and will start work immediately.
Mr Sarwar (44), Britain's first Muslim MP, has rejected claims made in last Sunday's News of the World that he gave Mr Islam Badar, who stood as an Independent Labour candidate against him in the general election, £5,000 to scale down his campaign. Mr Sarwar was the ultimate winner in the seat of Govan, Glasgow.
However, Mr Sarwar did admit handing the money to Mr Badar. He claimed it was a loan after the election, not a bribe.
He faces further allegations that he bribed two other fringe candidates, Mr Peter Paton and Mr Jamil Abbassi.
A multimillionaire who made his fortune in the cash and carry business in Glasgow, Mr Sarwar yesterday repeated strong denials of involvement in any corruption and is suing the newspaper. But the controversy has caused Labour intense embarrassment as the party harangued the Tories ceaselessly when they were in power for failing to take tough action to combat sleaze.
Labour chiefs spent around 25 minutes debating the Sarwar case at yesterday's National Executive meeting in London in what one source described as "a very sombre discussion".
The Prime Minister, Mr Tony Blair, told the meeting the party had set very high standards for action" if there was any wrongdoing.
The party inquiry will run parallel to the investigation being carried out by Strathclyde police, which was sparked by the government. In the last resort, Mr Sarwar could be expelled from the party.
The News of the World stood by its original story, with the managing editor, Mr Stuart Kuttner, hinting that further details might be disclosed.
Speaking in Glasgow, Mr Sarwar said he "fully understood" the decision to set up an inquiry.
"I reiterate my earlier statement that I refute entirely the totally false allegations made against me by the News of the World newspaper," he said.
In the Tory camp, the battle for the leadership descended into bitter recrimination after Mr William Hague - denounced the "constantly shitting fudge of the recent past.
The former Welsh secretary said his comments, in a speech to party activists in London, were not intended to criticise individuals and insisted the Tory government had changed Britain for the better. But Mr Hague said the Conservatives had lost the election because they failed to communicate with the electorate and their message had become tainted by "sleaze, greed and self indulgence".