The Parliamentary Ombudsman has strongly criticised two government departments for withholding information during his inquiries into the Hinduja passport affair.

Sir Michael Buckley accuses the Cabinet Office of withholding information and says the Home Office failed to keep files properly on the "highly sensitive" case.

This is a challenge to the very heart of the democratic process

Norman Baker Lib Dem MP

Opposition MPs have seized on the comments, arguing that it suggests the government had something to hide.

Peter Mandelson resigned in the Hinduja row - which centred around the passports applications of two Millennium Dome donors - but he has been cleared of wrongdoing.

The ombudsman's criticisms arise from his investigation into whether the Cabinet Office and Home Office broke the rules on open government.

'Deep concern'

In a report published on Thursday, Sir Michael complains about the lack of co-operation he got from both departments in that inquiry.

The Cabinet Office appeared to be "withholding papers", he says.

"I was deeply concerned about this development," Sir Michael continues. "Such a refusal strikes at the very heart of my office's function."

Mike O'Brien's telephone conversation was at the centre of the Hinduja row

The watchdog reports that it took six months for the Home Office to arrange a contact point so his staff could get the papers he needed to see.

"I am also critical of the Home Office for their clear failure to maintain their files, on what was a highly sensitive matter, in anything approaching an adequate manner."

Sir Michael later received apologies from both departments and was given the papers he had requested.

Liberal Democrat MP Norman Baker, said the ombudsman's report was couched in "unprecedented language".

'Something to hide?'

"It is a very serious matter that the Cabinet Office was withholding documents from the ombudsman," said Mr Baker.

"This is a challenge to the very heart of the democratic process.

"It also shows that the government, while maintaining on the surface that there was nothing to hide, was paddling away furiously under the water to keep information from the ombudsman."

Peter Mandelson resigned over the Hinduja row

Sir Michael was investigating a complaint by a journalist who had claimed the two departments had refused to give him information about the Hinduja case.

The journalist wanted copies from the Home Office of any letters Labour MP Keith Vaz, then a minister, had written about the Srichand and Gopichand Hinduja.

He also asked for details of a conversation between Mr Mandelson had with Home Office Minister Mike O'Brien about the two brothers' passport applications.

Mr Mandelson now disputes that conversation took place and the Home Office told the ombudsman there were no details of it they could provide to the reporter.

Apologies

Sir Michael said the department had been wrong to refuse to provide Mr Vaz's one letter on the matter until the Hammond inquiry into the Hinduja case was finished.

But the journalist had been given a copy of the letter after it was published by the Hammond inquiry report.

That point was underlined by a Home Office spokesman.

But he added: "We accept, however, that there are lessons to be learned in terms of administration and the delays that arose largely due to the need for consultation."

Hinduja inquiries

A Cabinet Office spokesman emphasised its apology for the initial delay in dealing with Sir Michael's initial request.

In his second inquiry earlier this year, Treasury solicitor Sir Anthony Hammond cleared Mr Mandelson and Mr Vaz of wrongdoing in the affair.

But he said it remained "likely" that Mr Mandelson had telephoned Mr O'Brien about the Hindujas.

Those findings prompted Downing Street to say that Mr Mandelson might not have needed to resign had the full details been known from the start.