Minister cleared in passport scandal

Mandelson: Resigned from government twice

LONDON, England -- Former cabinet minister Peter Mandelson did not act improperly in a passport scandal that forced him to resign, an inquiry has concluded.

The former Northern Ireland Secretary resigned in January amid allegations he helped an Indian billionaire -- who donated cash to the Millennium Dome -- obtain British citizenship.

Mandelson, who was in charge of the Dome project, was said to have contacted the Home Office about Srichand Hinduja's passport application at about the time Srichand and his brothers were donating £1million ($1.5 million) to the Dome's Faith Zone.

Sir Anthony Hammond, the lawyer who carried out the inquiry, said there was no improper link between either Mandelson and the Hinduja brothers or their donations to the Dome and the passport application.

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The report also cleared Foreign Office minister Keith Vaz, who is responsible for Britain's relations with Europe, of any wrongdoing in his connections with the Hindujas.

UK Prime Minister Tony Blair said the inquiry had been established "not to look into Peter Mandelson's resignation" but because allegations of corruption had been made and needed to be investigated.

"Those allegations have now been firmly rebutted and will allow Peter to rebuild his life without any stain on his character," the statement said.

Mandelson said: "The report has given me a great sense of gratitude and considerable relief.

"I am grateful to Sir Anthony for clearing my name and in restoring my reputation."

Second resignation

Mandelson was one of Blair's most trusted advisers and his resignation in January was the latest chapter in his roller coaster political career.

He was one of the driving forces behind Blair's 1997 election victory and was playing a key role in formulating Labour's general election battle plans before his resignation.

Mandelson stepped down from his government role as Northern Ireland Secretary amid varying accounts of his 1998 involvement in the British passport application by Srichand Hinduja.

It was the second time that Mandelson was forced to resign from the cabinet. In 1998 he stood down after it was revealed that he had borrowed a large sum from a ministerial colleague to buy a house.

Reuters contributed to this report.

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