A British Labour MP, George Galloway, who is accused of accepting money from Saddam Hussein's regime has said he intends to initiate libel action against the Daily Telegraph.
The newspaper claimed that Iraqi intelligence documents found in Baghdad suggest Mr Galloway received £375,000 a year from the oil for food programme.
The Telegraph also alleges that the deal was arranged at a meeting between Mr Galloway and an unnamed Iraqi spy in 1991.
Mr Galloway said he had never seen, bought or sold a barrel of oil and he said that, to his knowledge, he had never met a member of Iraqi intelligence.