AMERICA's most senior law official is considering an investigation into the use of interrogation techniques such as waterboarding.

Attorney-general Eric Holder could wreck Barack Obama's hopes of avoiding a scandal over alleged torture on terror suspects under the Bush administration.

Despite pleas from the president that the accusations should be forgotten, Mr Holder told aides he would decide whether to appoint a criminal prosecutor on the "facts and the law".

The prospect of former Bush officials facing trial would damage America's international credibility. Mr Obama has resisted Democratic pressure for a "truth commission", saying: "The nation should look forward."

An investigation would focus on whether the CIA tortured terrorism suspects after the 9/11 terror attacks on New York and the Pentagon.

Mr Holder said: "I hope that whatever decision I make would not have a negative impact on the president's agenda - but that can't be a part of my decision."

It has also been reported that former vice-president Dick Cheney ordered the CIA to withhold information about a secret counter-terrorism programme from Congress for eight years.

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