Lottery - Resignations Threatened"

Camelot Directors Threaten Resignation

She added: "Chris Smith has requested specific things - one of those is that bonuses be handed over to charity. If the directors feel they can't do that, the only obvious option for them to do next to safeguard the long-term future of the lottery is for them to resign." She said that the resignations would probably be from individual members rather than from the whole board.

At a meeting on Monday with Camelot chief executive Tim Holley, chairman Sir George Russell and communications director David Rigg, Chris Smith rejected an offer to pay the equivalent of the directors' bonuses to charity out of Camelot funds. He said he wanted to see some or all of the bonuses worth �2.3 million given up by the directors.

Mr Holley, Mr Rigg and the finance director, Peter Murphy were apparently considering resigning both to resist caving into political pressure and to end the long-running controversy once and for all. Camelot has always insisted the salary packets were agreed in 1994 and that the bonus payments being paid out are in recognition of targets which have been met.

The Government has already indicated that it wants the lottery to be run on a non-profit basis after Camelot's licence runs out in 2001.