Did Hamilton receive land illegally?

UPDATE (GMM) An investigation into an investment deal involving championship leader Lewis Hamilton has been given a clean bill of health.

We reported that the McLaren driver's $35m deal to buy a luxury beachside hotel development on the Caribbean island was being probed, following a change of government.

But Grenada tourism minister Peter David says the review showed the deal to be "completely legitimate", according to the news agency Associated Press.

"The attorney general has reviewed the contractual deal … and has found no case of impropriety on the part of the Lewis Hamilton team," he said.

David added: "To suggest any underhanded dealing by the purchaser or his agents is not only unfortunate, but incorrect."

10/05/08 A land deal involving Formula One driver Lewis Hamilton is under investigation on the Caribbean island of Grenada. Prime Minister Tillman Thomas told a news conference Friday that he has ordered an investigation into the deal, which occurred before he took office.

The deed for the property shows that the government transferred property worth $15 million to the British driver "free from encumbrances" in exchange for using his image and name for the next four years, apparently to promote tourism.

However Hamilton's group did pay $35 million for the Grenada Grand Beach Resort built on the property, according to a copy of the deed seen by the Associated Press. The deed was signed July 7 of this year, a day before the general elections.

The deal is controversial in part because Grenada's government owns nearly all beachfront land and leases it to developers for an annual fee. Some local journalists complained that taxpayers received no payment for transfer of the land.

Daniella Mitchell, who works for the local law firm listed in the deed, did not immediately return a call for comment. Former prime minister Keith Mitchell told legislators Thursday that Hamilton's image would bring in millions of dollars in revenue. Hamilton has not done any promotional work so far.

Hamilton's grandfather lives in Grenada.