Foreigners loaned Tories millions

London: An Australian-born financier loaned Britain's Conservative Party millions of pounds, British newspapers reported in their Sunday editions.

The Sunday Telegraph said that Michael Hintze loaned the party £2.5 million (Dh16 million), and the Observer newspaper reported the Conservatives had another foreign-born benefactor in Swedish sports-equipment tycoon Johan Eliasch, who they said loaned the party £1 million (Dh6.4 million).

Both papers quoted Hintze as saying that he supported the party "because I can, and because the law allows me to do so."

Eliasch declined to comment to the Observer, saying that his financial dealings with the party were in strict accordance with the law.

The revelations come as Britain is embroiled in a furore over political loans.

Forbidden

British law forbids donations from foreign sources, but the law does not cover loans to political parties.

Loans to political parties do not have to be declared to the country's Electoral Commission, while gifts must be disclosed.

Eliasch became a British citizen three years ago, according to the Observer; Hintze has dual Australian and British nationality.

Liam Fox, who was Conservative party co-chairman at the last election, said yesterday he did not think loans had been made by overseas backers.

"All our loans were fully compliant with the law and we intend in the future they will be even more transparent because we will set out the names of the donors," he told the Sunday Programme on GMTV.