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Labour party in pain over MP's Benazir connections

Murali Krishnan in London

A Labour MP find himself involved in a sleaze row following allegations that he received cash-for-favours from former Pakistani premier Benazir Bhutto.

Maverick politician George Galloway is accused of netting up to 300,000 pounds in return for supporting Bhutto's causes in Britain while she held office.

It is believed the payout came out of Pakistan's state coffers and were illegally channelled to a publishing company he co-founded, called Asian Voice.

The money is alleged to have been used to launch an Asian newspaper, East in 1996.

The activities of Galloway, the super rich MP for Glasgow Kelvin, are to be part of a major probe by the Pakistani authorities into claims that Bhutto and her family stole $1.5 billion during her two terms in power.

Saifur Rehman, who is leading the enquiry, said, "There is an investigation into money given to Galloway's company to help set up the magazine."

"She (Bhutto) was hoping to use him as her personal lobbyist under the cover of raising the Kashmir issue."

Rehman further added, "He is involved in our investigation and the case will be passed onto the courts if appropriate."

But investigations have revealed that no such payments had been declared under Galloway's name at Westminster.

If the accusations levelled against him stick, he could face serious disciplinary measures from the both the Commons standards watchdog and Labour bigwigs for bringing the party into disrepute.

Although Galloway and Bhutto are friends, sharing similar views on Kashmir, the Pakistani government insists that Shamsal Hasan, the country's former high commissioner in London, was the main link between the two.

The government claims he acted as a channel for cash flowing from the ex-prime minister to the Scottish politician.

Hasan was called back to Islamabad in November 1996 after Bhutto was ousted from power on charges of corruption.

But not before he and Galloway co-founded East newspaper -- now alleged to be the secret beneficiary of stolen State funds and the subject matter of enquiry.

A former colleague at the publication said the MP was always wary of criticising Bhutto.

"There was an unspoken code that we shouldn't write anti-Benazir stories. Everyone understood that," he said.

Galloway -- who earned the nickname 'Gorgeous George' for wearing Georgio Armani suits and Gucci shoes -- was this week on a controversial mission to Iraq.

Having been criticised in the past for openly praising Saddam Hussein, he is currently trying to get around United Nations-enforced sanctions to bring a sick Iraqi girl, suffering from a terminal disease, to Britain and provide her with life-saving treatment.

The visit earned huge publicity for Galloway as major television networks and newspapers focussed on his mission.

A spokeswoman for the MP refused to comment on the Pakistani government's claims. His office said they were not in a position to remark on the allegations.

Meanwhile, back in Islamabad, Benazir Bhutto has accused the Pakistani government of trampling on her legal rights and launching a campaign to destroy her and her family.

The accusations followed a decision earlier this week by two Pakistani courts to freeze the assets of Bhutto, her jailed husband, her mother and several associates.

The value of the assets is estimated at roughly $ 300 million and includes property and bank accounts.

The courts in both Lahore and Rawalpindi ordered the assets frozen while the government conducts an investigations into corruption charges against Bhutto, whose administration was sacked in 1996 on charges of runaway abuse of power and economic mismanagement.

Bhutto has denied the charges.

In a letter faxed today to news organisations in Islamabad, Bhutto said she was given no opportunity to defend herself in court before her assets were frozen.

''This was an astounding order passed by a court that gave my family and me no notice, advance warning or ability to respond or defend ourselves against any charges,'' she said in her letter.

''I was given no opportunity for defence or notice of any kind,'' she said.

Bhutto, who is on a speaking tour in the United States, faced three separate charges of corruption in a Lahore high court. She said the charges have been fabricated.

''The Sharief regime's supposed case against me involves three specific contracts and on none of which do they have a shred of evidence or proof of my misusing my position,'' she said.

Her husband, Asif Ali Zardari, a senator in the upper house of Parliament, has been in jail since his wife's dismissal on charges he ordered the police killing of her estranged brother, Murtaza Bhutto, in September 1996.

Bhutto's first term in power also ended early when another President used his constitutional power to dismiss her government, also on corruption charges.

No charges were proved. Her husband spent more than two years in jail then as well, but was eventually acquitted of all charges against him.

Additional reportage: UNI

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