Tycoon denies role in UK passport row


Srichand Hinduja (right) maintains that no favours were asked

LONDON, England -- The business tycoon at the centre of the passport row which led to a British minister's resignation has denied that he sought political favours.

Indian-born Srichand Hinduja said on Thursday that he had made his passport application as any citizen of any country would do.

Peter Mandelson resigned as Northern Ireland Secretary after admitting he talked to a Home Office minister in 1998 about a passport application by Hinduja.

At the time Mandelson was responsible for the Millennium Dome project in London and the Hinduja Foundation, set up by the three Hinduja brothers, provided the attraction with Ł1 million sponsorship.

His opponents accused him of pulling strings for the Hinduja passport application -- allegations he has strenuously denied.

Speaking from New Delhi, Hinduja maintained that there was no connection between the Dome donation and his successful passport application -- one year after his previous application for British citizenship had been turned down.

"I have not asked anybody to give any favour to me, whether it is Peter Mandelson or anybody else," he said.

British Prime Minister Tony Blair has ordered a review of the citizenship application to ensure it was above board.

John Reid has taken over from Mandelson and is spending the first day of his job in key meetings at a crucial time for the peace process.

Reid, a Roman Catholic, who before the resignation was the Secretary of State for Scotland, was expected to meet Royal Ulster Constabulary Chief Constable Sir Ronnie Flanagan on his first official visit to Belfast on Thursday.

His talks with Northern Ireland police and political leaders are expected to last several days.

In a statement after taking office, Reid acknowledged the Good Friday Agreement was at a critical stage and that the main issues of IRA decommissioning, policing reform and demilitarisation were at the fore.

He said: "The next few weeks provide an enormous opportunity to put the Agreement and the future of Northern Ireland on a more stable basis.

"I believe that the Good Friday Agreement offers all the people of Northern Ireland the chance to leave the past behind and move into a more stable and prosperous future. I will do everything I can to make it work because that is the expressed will of the people."

Mandelson's resignation forced Prime Minister Tony Blair to shuffle his Cabinet, with energy minister Helen Liddell taking over from Reid in Scotland.

Northern Ireland First Minister and Ulster Unionist leader David Trimble welcomed Reid's appointment and said he looked forward to "working with him in a constructive manner in the days ahead."


John Reid: Looking for a stable Northern Ireland

Stormont Deputy First Minister and SDLP deputy leader Seamus Mallon said he hoped to develop a "good working relationship" with the new Northern Ireland Secretary.

Sinn Fein national chairman Mitchel McLaughlin wished him well but said republicans were more concerned about British government policy towards the Good Friday Agreement.

He said: "British policy at this time is enshrined in the Good Friday Agreement. We will be looking to Mr Reid to promote, defend and act as a guarantor of the Agreement. This is particularly important at this difficult phase of the peace process."

Meanwhile, Mandelson, 47, is considering his future in the British political wilderness after resigning as a senior minister in Blair's government for the second time in 25 months.

After days of confusion over the extent of his personal interest in the UK naturalisation ambition of Hinduja, Mandelson was called to a meeting with Blair in which he was forced to retract earlier statements that he had played no role in a passport application.

In 1998 the foundation run by Hinduja and his brothers, Gopichand and Prakash, gave Ł1 million to the Faith Zone in London's Millennium Dome.

At the time Mandelson was the minister in charge of the Dome project. His opponents accuse him of pulling strings for the Hinduja passport application -- allegations he strenuously denies.

All three brothers are in India where they face questions over corruption allegations.

Reuters contributed to this report.