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- guardian.co.uk, Wednesday January 24 2001 17.34 GMT
Observer editor Roger Alton has praised the work of the paper's social affairs and politics team in breaking the Mandelson passport application story.
Following the spectacular resignation of Mr Mandelson, Mr Alton said the scoop that led to his downfall, by public affairs editor Antony Barnett, chief political correspondent Gaby Hinsliff and Asia correspondent Luke Harding, was a testament to "painstaking and diligent reporting".
"Peter Mandelson has been forced to resign today because he issued an inaccurate statement to one of our journalists via his spokesman at the weekend," said Mr Alton.
"The statement said that Mr Mandelson had made no personal representations on behalf of the Hindujas. This then became the basis for a series of incorrect public statements and press briefings by officials and ministers.
"We believe it was in the public interest that this matter was brought into the open," he continued.
Mr Barnett added that although the story was a triumph for "good, old-fashioned journalism", he was "sad that such a talented and clever man was forced to lie to us on Saturday and continued to lie to the government".
The Observer has been pursuing links between the Hinduja brothers and the funding of the Faith Zone in the Millennium Dome for some months.
Mr Barnett said that after a news story in November, he began receiving information from a number of sources who suggested that Mr Mandelson may have been among ministers who made enquiries on behalf of Mr Hinduja.
He contacted the MP Norman Baker, who tabled questions in the House, in response to which it became clear that Mr Mandelson had been involved.
But the Observer's chief political reporter, Gaby Hinsliff, was told on Saturday that Mr Mandelson had not been in personal contact with the home office.
