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Suspended Labour Peer Lord Nazir Ahmed has told The Template that he did not call for a £10m bounty for the capture of US Presidents Barack Obama and George Bush.

He was reported to have made the remark by a Pakistani newspaper.

But Lord Ahmed said the story was “lies” and that he had never mentioned a bounty for President Obama or Bush.

The Express Tribune said the comments were a response to a US reward being offered for the capture of a Pakistani radical, Hafiz Muhammad Saeed who founded Lashkar-e-Taiba, the group which is blamed by India for the 2008 Mumbai terror attacks in which 166 people were killed.

Lord Ahmed is said to have made the remarks at a reception in Haripur on Friday.

Labour has suspend the peer, pending an investigation.