Cameron scolded by watchdog over fundraising

LONDON (Reuters) - Parliament's standards watchdog reprimanded Conservative Party leader David Cameron on Thursday for using his taxpayer-funded parliamentary office to raise money for his party following allegations of cash for access.

Cameron was "ill-advised" to offer access to his office in the Commons in return for membership of Conservative fundraising clubs with annual fees of as much as 50,000 pounds, the Commons' Committee on Standards and Privileges said.

Cameron accepted the ruling, apologised "unreservedly" to parliament and said it would not happen again.

The use of parliamentary facilities for political fundraising is strictly prohibited.

"Mr Cameron was in our view ill-advised to link directly ... the issues of access to his office and party fundraising," the watchdog said in a report.

"The parliamentary estate is not provided out of the public purse to be used as part of a device to attract party fundraising and the suggestion that it is so being used is not one likely to enhance the public reputation of the House," it added.

The decision, embarrassing for Cameron, comes as police investigate allegations parties nominated wealthy businessmen for seats in the Lords in exchange for loans.

Detectives are expected to wrap up their inquiry into the loans-for-Lordships scandal in coming weeks. Two senior aides to Prime Minister Tony Blair have been arrested and later released and Blair himself has been questioned.

The probe into Cameron's fundraising techniques was prompted by a complaint by Liberal Democrat MP Norman Baker following newspaper reports the Conservative leader was raising tens of thousands of pounds by inviting people to his office.