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MAJOR ISSUES

BULLETIN

BLAIR'S GATEKEEPER HELD OVER HONOURS

'COVER-UP'

Kirsty Walker, Stephen Wright and Jane Merrick.

Daily Mail-Saturday, January 29, 2007.

ONE of Tony Blair's closest aides was arrested yesterday on suspicion of trying to cover up the sale of honours to Labour party donors.

Ruth Turner, number two in the Prime Minister's inner circle, was questioned for several hours by police who suspect she tried to conceal 'smoking gun ' evidence.

Her arrest on suspicion of perverting the course of justice caused panic at Downing Street and fuelled speculation that charges that charges will be brought within the next few months.

Mr Blair immediately spoke up in her defence, insisting she is a women of 'the highest integrity'.

Sources close to the inquiry confirmed that the focus of the inquiry had shifted to the whereabouts of key e-mails or memos, which it is alleged, have been deleted or destroyed.

Opposition MPs said the water is 'now lapping around Tony Blair's neck' and Labour backbenchers were preparing to step up calls on Mr Blair to resign before further damage is inflicted.

Insiders revealed that the Prime Minister and his close aides were stunned by Miss Turner's arrest.

The 36-year-old director of government relations was arrested by four officers at her London home at 6.30am. It is believed she was still in bed when they banged the door.

She was given time to dress before being taken to an undeclosed police station for questioning.

She is believed to have been subjected to lengthy interrogation by Detective Superintendent Graham McNaulty, the officer who also quizzed the Prime Minister last month.

The interview was tape-recorded, Miss Turner was fingerprinted and had DNA taken. One of the purposes of this is to help determine whether she touched key documents. It is understood her home was searched and a number of items were taken away.

Lord levy, Labour's chief fund-raiser, is also expected to be rearrested before police send a file on the investigation to the Crown Prosecution Service.

The news that they were probing a possible cover-up drew parallels with the WATERGATE scandal which led to the resignation of U.S. President Richard Nixon.

Sources have told the Mail that police have uncovered a mass of evidence which may well have 'totally justified' the decision to investigation, code named

'OPERATION RIPPLE'

However, It is likely to be mid-summer before a decision on whether to bring criminal charges is made.

In a statement last night, Miss Turner firmly denied any wrongdoing, she said:

'I have been completely open with the police throughout and will continue to co-operate with them fully. I absolutely refute any allegations of wrongdoing of any nature whatsoever.'

Mr Blair who spent yesterday at Chequers, added: Ruth is a person of the highest integrity for whom I have great regard and I continue to have complete confidence in her.'

The charge of perverting the course of justice, which carries a maximum life sentence, can be brought if a person tries to interfere with an investigation that might bring criminal proceedings.

As Mr Blair's 'gatekeeper' Miss Turner holds a key position in Number 10, reporting direct to chief of staff Jonathan Powell and playing a role in controlling access to the PM.

She became the fourth person -and the first salaried Government official -to be arrested in the inquiry, after lord Levy, major Labour donor Sir Christopher Evans and headmaster des Smith.

She was previously interviewed under caution in September last year. it was reported this was connected to the e.mails uncovered during a search of Downing Street files.

Police questions then reportedly centred on e.mails which appeared to have been sent to and from Miss Turner's work station, discussing which lenders might be placed on a list of nominees for peerages.

In June last year, she faced charges that she and another senior Downing Street adviser John McTeran had secured a signature from Labour chairman Ian McCartney, as he lay seriously ill in his hospital bed, to sign off the peerages. She denied this.

She personally telephoned lenders in October 2005 to tell them they were on the Prime Minister's peerages nomination list, including Sir Gulam Noon and Sir David Garrard.

The police inquiry began in March 2006 after the House of Lords rejected nominations for four millionaire backers -Chal Patal, Sir Gulam, Sir David and Barry Townsley - whose names were put forward by the Prime Minister for peerages.

Angus MacNeil, the Scottish national Party MP whose complaints helped trigger the inquiry, said:

'Water is now lapping around Blair's neck'.

Labour party sources said last night:

To have a senior aide to Tony Blair facing possible charges for perverting the course of justice will cause deep concern on the Labour backbenchers.'

Detectives have ruled out the possibility of reinterviewing Mr Blair.

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JANUARY/07