Davidson expects a "backlash"

Sarwar Inquiry Hears MP's Evidence

Mr Davidson, who gave his evidence at a secret location in London on Friday, backed Mike Watson not Mr Sarwar in the pre-election selection battle for the Glasgow Govern constituency.

After giving evidence Mr Davidson said he was expecting personal abuse from Mr Sarwar and his supporters, who fiercely deny the bribery claims.

"I would expect to be attacked and blamed for the Highland clearances, as well as the Irish potato famine, the Great Fire of London and the drowning of Atlantis."

He declined to give details of his evidence to the panel, saying it was a confidential meeting. I told them as much as I could."

Meanwhile, it was confirmed that the panel's report will be finalised over the weekend and put to Labour's development and organisation committee on Monday.

Sarwar: under a cloud

It is expected to recommend that Mr Sarwar, Britain's first Muslim MP, lose his privileges as an MP and face "internal exile" in the party because he has brought Labour into disrepute.

The measure would fall short of the ultimate sanction of losing the party whip as Labour chiefs are reluctant to withdraw that until the police finish their probe into the bribery claims. Permanent expulsion would only come should the police find hard evidence against Mr Sarwar.

Mr Sarwar is currently suing the News of the World which first alleged that he gave £5,000 to Islam Badar - who stood as an Independent Labour candidate against him at the General Election - to scale down his campaign.

A multi-millionaire who made his fortune in the cash-and-carry business in Glasgow, Mr Sarwar has repeatedly denied being involved in corruption.

However, attitudes towards him appeared to harden and his chances of remaining an MP seemed to weaken after he admitted handing the money to Mr Badar. He said it was a loan after the election, not a bribe. He faces further allegations that he bribed two other fringe candidates, Peter Paton and Jamil Abbassi.

Earlier this week, Mr Sarwar said the bribery allegation and the claim that the Govan Labour Party tried to "rig" the election were "baseless, false and ludicrous".

He said the £5,000 was a loan - made after the election - because Mr Islam was a fellow member of the Asian community in distress.

Mr Sarwar said such loans were normal business practice."There will be hundreds of people in Glasgow I've helped, and this has helped my business as well," he said.

The controversy has caused Labour intense embarrassment - while in Opposition the party harangued the Tory Government ceaselessly for failing to take tough action to combat sleaze.

When Labour's inquiry was set up last month, party general secretary Tom Sawyer vowed the probe would "leave no stone unturned" and Labour would not hesitate to act if there was any evidence of wrongdoing.

The claims have been investigated by a panel set up by Labour's National Executive Committee, which is anxious to snuff out the first sleaze allegation since the party won power.

Meanwhile, Strathclyde Police are still probing the bribery claims and allegations of vote rigging on polling day.