Lord Peter Mandelson has been released from his bail conditions but remains under investigation, the Metropolitan Police have said.
Lord Mandelson was arrested on suspicion of misconduct in public office last month after police received a tip-off from Commons Speaker Sir Lindsay Hoyle that he was a flight risk.
Lawyers for the former peer said on Friday that he has now had his bail conditions removed and his passport returned.
The Metropolitan Police also confirmed Lord Mandelson’s bail conditions have now been dropped, saying he has instead been released under investigation.
A Met spokesperson said: “A 72-year-old man arrested on suspicion of misconduct in public office has been released under investigation.
“The investigation remains ongoing.”
Lord Mandelson’s lawyers at Mishcon de Reya said on Friday: “In light of speculation following his arrest last week, we wish to clarify that the Metropolitan Police have removed all of Peter Mandelson’s bail conditions and returned his passport.
“Our client did not and does not pose a flight risk and will continue to cooperate with the police investigation. He will not be making any further comment at this stage.”
Lord Mandelson was sacked as the UK’s ambassador to the US last year, and then resigned from the Labour Party and the House of Lords earlier this month when fresh emails surfaced in the latest tranche of the so-called Epstein files in the US.
He was arrested in late February on suspicion of misconduct in public office, following claims he had leaked sensitive government information to Jeffrey Epstein.
The police made the arrest despite an earlier agreement that Lord Mandelson would speak to police voluntarily. It followed what the former cabinet minister’s lawyers claimed was a “baseless suggestion that he was planning to leave the country”.
The Met Police apologised to Sir Lindsay after officers told Lord Mandelson’s lawyers he had tipped them off about claims he planned to flee to the British Virgin Islands, prompting his arrest.
In the recently released batch of Epstein files, Lord Mandelson appeared to confirm a yet-to-be-announced €500bn bailout of the Euro. The documents show Epstein emailed Lord Mandelson “sources tell me 500 b euro bailout , almost complete”.
In the wake of the criticism over Lord Mandelson’s appointment, the government has seen several advisors to the PM quit, including chief of staff Morgan McSweeney, communications director Tim Allan and cabinet secretary Sir Chris Wormald.
