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Mandelson scandal spreads to Tony Blair years as officials probe early New Labour links

In the corridors of power, whispers of a decades-old connection between a prominent political figure and a notorious financier are stirring unease and intrigue.

Tony Blair

Officials are scouring records stretching back more than 25 years to Tony Blair’s administration (Image: Channel 4)

Officials are scouring records stretching back more than 25 years to  Tony Blair’s administration hunting for evidence of inappropriate Lord Mandelson-Jeffrey Epstein contact.

Civil servants have been directed to examine government correspondence tracing back to Mandelson’s 1999-2001 Northern Ireland secretary appointment.

Officials are simultaneously scrutinising his 2008-2010 government service, when Gordon Brown returned him to Cabinet as business secretary and de facto deputy prime minister.

The documents are unlikely to be made public, although any findings will be forwarded to Scotland Yard and may prompt an enlarged police investigation into Mandelson.

Potential witnesses could encompass Blair and Jonathan Powell, presently Sir Keir Starmer‘s national security adviser.

Imminent questioning

Detectives are believed to be about to question Mandelson under caution within days concerning suspected misconduct in public office, an offence that can mean life imprisonment.

Mandelson has dismissed all allegations of wrongdoing.

The Cabinet Office search’s scale underscores the potential Mandelson scandal repercussions, involving senior figures across successive Labour administrations.

Relationship spanning decades

Mandelson’s connection to Epstein stretches back multiple decades.

In May 2002, he orchestrated a Blair-Epstein meeting following his Northern Ireland secretary resignation the preceding year, whilst preserving tight links to the prime minister.

He messaged Jonathan Powell, Blair’s chief of staff, stressing that Bill Clinton had told Blair he wished to present his “travelling friend” Epstein.

Mandelson characterised Epstein in flattering language as an “active scientific catalyst/entrepreneur” with his “finger on the pulse of many world markets and currencies.”

He remarked: “He’s young and vibrant. He’s safe (whatever that means) and Clinton is now doing a lot of travelling with him.”

The 14 May 2002 London encounter saw officials describe Epstein as “very rich and close to the Duke of York.”

Police launched the probe after US Department of Justice document disclosures exposed Mandelson relaying confidential and market-sensitive intelligence to Epstein on no fewer than four occasions throughout the 2008 financial crisis period.

This included disclosing a memorandum by Nick Butler – a senior Brown adviser – proposing government asset disposals to settle bank bailout obligations, whilst seemingly addressing prospective tax cut strategies.

Mandelson

Mandelson has dismissed all allegations of wrongdoing. (Image: DoJ)

Epstein

Officials are hunting for evidence of inappropriate Lord Mandelson-Jeffrey Epstein contact. (Image: DoJ)

Extensive search operation

The Cabinet Office examination seeks to uncover further government archive material relating to Mandelson and Epstein that may prove relevant to the police inquiry.

Dozens of civil servants are believed to be dedicated full-time to the documents, with a Whitehall source characterising it as a “mammoth operation.”

The source remarked: “They are going through absolutely everything right back to when Mandelson was in Northern Ireland. They want to make certain that there isn’t anything else out there.”

The search proceeds concurrently with work to locate all communications between Mandelson, ministers and special advisers prior to and during his US ambassador posting, which terminated in September following seven months.

This represents tens of thousands of documents.

Any material concerning national security or diplomatic affairs will undergo scrutiny by Parliament’s Intelligence and Security Committee (ISC).

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