LABOUR peer Lord Ahmed, from Rotherham, has been suspended by the party over reports that he offered a £10 million bounty for the capture of US president Barack Obama.
Lord Ahmed, who denies the allegation, is quoted in a newspaper in Pakistan offering cash for the capture of Mr Obama and White House predecessor George Bush.
He is alleged to have made the comments at a reception in Haripur on Friday.
The Express Tribune said he spoke out in direct response to an American reward being offered for the capture of prominent Pakistani radical Hafiz Muhammad Saeed, who founded the violent extremist group Lashkar-e-Taiba, which is blamed by India for the 2008 Mumbai terror attacks in which 166 people were killed.
Labour has suspended the peer, pending an investigation.