MP Sandys had fraud charges dropped-claim LONRHO SCANDAL: NEW ALLEGATIONS

A SUGG STIO Streatham and exorbitant fees dropped against added fresh fuel Heath regime.

reports that the fraud charges, alleging deception in a Lonrho bid to take over a South African mining company, were mysteriously withdrawn in January without explanation.

'Sandys spent a good deal of time talking with South Africa's Foreign Minister Hilgard Muller and London Ambassador Carel de Wet ...

'If Sandys' talks with the South Africans did persuade their Attorney-General to withdraw the fraud charges, then in simple cost benefit terms, he was certainly worth £50,000 to Lonrho,' the paper comments.

Sandys's consultancy salary was suddenly increased from £10,000 a year to £50,000 a year in November 1971, the 'Sunday Times' reveals, shortly after finance director Fred Butcher was arrested in Johannesburg. Other directors could not go to South Africa for fear of LUMP SUM Later, Sandys transferred to a £40,000-a-year post as chairman plus a £130,000 lump sum as 'compensation'. A reported 98 per cent of his consultant's fees and 55 per cent ot his chairman's salary were paid into a tax haven. The £130,000 lump sum was paid in secret.

Heath told the Conservative Women's conference last week:

It is no part of our philosophy that, by one device or another, vast sums of money should pass hands at the heart of our financial system as personal rewards; sums out of all proportion to the rewards available for high distinction in other professions and walks of life.

This hypocritical cover-up rottenness which is N th Duncan form er Colonia by Lonrho to company in South the scandals burning Sandys ... talks with South Africans.

at the heart of the capitalist system is exposed by Heath's own actions with regard to another great scandal, the Polwarth affair.

Lord Polwarth, appointed by Heath to look after the 'public interest An North Sea oil development, has substantial shareholdings in investment companies which have a growing interest in the private exploitation of the very industry Polwarth is meant to be watching on our behalf.

He did not declare this interest when he took the job.

Even the 'Sunday Times' has had to comment on 'the curious belief of Lord Polwarth that neither the public nor the Prime Minister had any business even to know about his oil holdings. This belief the Prime Minister has now explicitly endorsed'.

The Sunday Times' regards this as an even more serious scandal than the Lambton-Jellicoe affair, or Lonrho.

This is wrong. There is no distinction between them. All are aspects of the capitalist system which is itself based on the private ownership for profit of the earth's riches and the exploitation of man by man.

But the biggest scandal of all is the hypocritical waging of the class war by the representatives of capitalism.

Heath's comment on the 'ugly and unacceptable face of capitalism' is a sop to andys, Tory Secretary, was F get fraud char Ages South Africa has public opinion behind which new outrages are being prepared against the working class through wage-cutting, legal repression trade unions and preparations for the corporate state.

Sandys typifies the hatred of the labour movement that goes hand in hand with capitalism's 'ugly face'.

In the 1970 election campaign, he proposed that workers should be sued for damages if they broke their contracts of employment; that secret ballots be imposed to prevent strikes being called; and that the law be used more harshly against demonstrators.

HANG ON The reactionary politics of the Tories are entirely directed against the labour and trade union movement to enable the ruling class to hang on to their privileged existence.

In this, they receive invaluable support from the Labour Party and TUC leaders who are the major obstacle standing in the way of the only policy which can now deal with the situation —an all-out campaign to force the Tory government to resign from office. • WHO IS THE THIRD MAN? •p. Iz.

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Party Building Fund 86a, Clapham High Street London SW4 7UG. REASE SOUN OTHER ERS Pickets outside South Africa House, London, protest against the trial of the 'Pretoria Six' under the notorious Terrorism Act. Among the demonstrators were Mrs Kathleen Hosey, of Dublin, and four of her children: Maureen (22), Tom (17), Peter (13) and Christopher (4). John Hosey, her eldest son, is one of the accused.

TOMORROW

How a centrist 'corrects' Marx and Lenin Cliff Slaughter replies to an attack on the SLL in the pul cation 'Permanent Revolutic issued by the group cal 'Workers Fight' Order now-01-622