Police rushed to arrest Peter Mandelson fearing he was imminently planning to flee to the British Virgin Islands, it emerged on Tuesday.
Scotland Yard received new intelligence that the disgraced former minister presented a ‘flight risk’ and a decision was taken at a senior level to arrest him as soon as possible to prevent him leaving the country and taking up permanent residence abroad to avoid prosecution.
But an extraordinary row broke out on Tuesday as a furious Lord Mandelson hit out at detectives, telling friends they had been taken in by ‘complete fiction’ as he insisted that he never planned to leave the country and intended to cooperate fully with police.
Now the former Labour grandee’s lawyers have demanded Scotland Yard produce evidence of the ‘baseless suggestion’ that their client was planning to go into hiding abroad to avoid potential prosecution for misconduct in public office over alleged leaks to Jeffrey Epstein.
But sources close to the investigation said the officers concerned considered the intelligence was from a reputable source and there were ‘strong operational reasons’ for carrying out the arrest as soon as possible.
Detectives believed there was such a serious risk that Lord Mandelson could flee that they decided to impose bail conditions placing restrictions on his movements, including a ban on travelling out of the country.
On Tuesday it was reported on the News Agents podcast that police acted after the Lords Speaker informed them he had heard Lord Mandelson was planning to travel to the British Virgin Islands.
The Met has refused to reveal the source of the information.
Peter Mandelson being released from Wandsworth prison early on Tuesday morning
Lord Mandelson was held for around nine hours on Monday following his arrest on suspicion of misconduct in public office
On Tuesday, a spokesman for Lord Forsyth said he did not receive information relating to Lord Mandelson’s movements, saying: ‘Any suggestion at all that the Lord Speaker received information about Lord Mandelson’s movements or communicated any such information to the Metropolitan Police Service, is entirely false and without foundation.’
Some weeks ago, detectives agreed with Lord Mandelson’s lawyers that he could attend an interview under caution next month on a voluntary basis at a central London police station over allegations that he passed secret government information to the paedophile when he was business secretary.
But over the weekend the force received intelligence to suggest that the former minister, known as the so-called Prince of Darkness, was imminently planning to go abroad.
On Monday morning, detectives became so alarmed by claims that Lord Mandelson was preparing to leave the country, three officers rushed to arrest him at his £7.6million Regent’s Park home.
The ashen-faced peer was later pictured being led away by officers at 4.30pm, visibly stunned by the sudden knock at the door.
The unusual timing of the arrest had raised questions as criminal suspects are often arrested in early morning raids.
Earlier, Scotland Yard refused to comment on the timing yesterday, with a spokesman saying only that there were ‘strong operational reasons’.
But hours later, Lord Mandelson’s lawyers Mishcon de Reya issued a statement denouncing police for being fooled by a ‘baseless suggestion’.
Fuming, Lord Mandelson told friends shortly after his release following nine hours of questioning that he had been the victim of a ‘complete fiction.’
He said: ‘Despite a previous agreement between police and legal team over a voluntary interview in early March, police arrested me because they claimed… that I was about to flee to the British Virgin Islands and take up permanent residence abroad, leaving Reinaldo, my family, home and Jock behind me.
‘I need hardly say complete fiction. The police were told only today that they had to improvise an arrest. The question is, who or what is behind this?’
In this photo, Lord Mandelson stands in white underwear talking to a woman in a bathing robe
Peter Mandelson (L) with Andrew Mountbatten-Windsor in 2007 at the European Commission headquarters in Brussels
A spokesman for the law firm said: ‘Peter Mandelson was arrested yesterday despite an agreement with the police that he would attend an interview next month on a voluntary basis.
‘The arrest was prompted by a baseless suggestion that he was planning to leave the country and take up permanent residence abroad.
‘There is absolutely no truth whatsoever in any such suggestion. We have asked the Metropolitan Police Service for the evidence relied upon to justify the arrest. Peter Mandelson’s overriding priority is to cooperate with the police investigation, as he has done throughout this process, and to clear his name.’
Lord Mandelson has previously denied any wrongdoing and said he did not act for financial gain.
He is accused of sending market-sensitive information to the paedophile financier while he was business secretary in Gordon Brown’s government during the financial crisis.
Documents released by the US Department of Justice suggest information was leaked about potential policy measures, including an ‘asset sales plan’, a tax on bankers’ bonuses and a bailout package for the euro the day before it was announced in 2010.
The emails appeared to be sent to Epstein after he became a convicted sex offender.
On Tuesday, there was speculation that the unusual public statement from Lord Mandelson’s lawyers may turn into a wider complaint about the unfairness of his police treatment, which could result in arguments that Lord Mandelson cannot receive a fair trial in the event of any prosecution.
Last week, Andrew Mountbatten-Windsor was arrested by Thames Valley Police for the same offence of misconduct in public office over claims he similarly passed sensitive information to Epstein during his time as the UK’s trade envoy.
But the former Duke of York was released under investigation by the force, rather than ask him to submit to any bail conditions.
Police bail can only be imposed for three months before officers have to apply for permission for an extension.
In contrast, there is no similar time limit for a suspect ‘released under investigation’.
On Tuesday, the Metropolitan Police declined to comment on the row.
But the force showed no signs of backing down on the need for bail conditions, merely repeating their initial statement that, ‘a 72-year-old man arrested on suspicion of misconduct in public office has been released on bail pending further investigation.’
Lord Mandelson has been bailed until a date in May.
