Labour And Political Donations

A year-and-a-half after the loans-for-honours scandal broke, I was amazed to listen to a 5 Live interview last night with David Abrahams.

He has given £222 000 to Labour in the six months since Gordon Brown became PM, but he gave the money to two intermediaries (a friend; his secretary), and they donated to Labour as if it was their own money. Donations made via third parties are illegal unless the person behind the donation is also declared or there is a "reasonable excuse." Abrahams' excuse seems to be that he didn't want any publicity. Well, that worked out well. The strange thing is that has been a member of Labour for 40 years, and is a former local councillor, so why the need for secrecy?

It's not just Abrahams who could have broken the law. It's whomever accepted his donation:

"The agent must ensure that, at the time when the donation is received by the party, the party is given all such details in respect of the donors as are required . . . to be given in respect of the donor of a recordable donation." It continues: "A person commits an offence if, without reasonable excuse, he fails to comply . . ." Under schedule 20, such an offence is punishable by up to a year in prison or an unlimited fine or, if a case is heard in a magistrates court, six months in jail or a fine up to £5,000.

This is Gordon Brown's promise for a new type of Labour politics? Did Labour investigate where this money was coming from?

In contrast to "grey party" political donations buying influence, access and seats in the Lords, the Green Party has had five donations which were £10 000 or larger since the 1st quarter of 2001. The largest of these was a bequest from a will (the late David Gillet, £132 000, August 2006).

You can search here for all political donations to all parties, thanks to computer boffins at the Electoral Commission.