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Mendelsohn knew about donor

Updated on 28 November 2007

By Lucy Manning

Labour's chief fundraiser admitted today he knew a month ago that David Abrahams was using third parties to make donations to Labour.

Labour's chief fundraiser admitted today that he knew a month ago that businessman David Abrahams was using third parties to make donations to Labour, but he didn't tell the party leadership.

In a statement, Jon Mendelsohn said he was told by the party's general secretary, who resigned on Monday, that the arrangements were legal.

He decided to contact Mr Abrahams because he was concerned that the donations weren't transparent, but the property developer didn't agree to a meeting. He also mentioned past disagreements with Mr Abrahams.

Gordon Brown came under huge pressure from the Conservatives and the Liberal Democrats in the Commons today. And in a sign of just how serious this crisis is for the government, Labour's own treasurer said the way he and other officials were kept in the dark was "absolutely wrong".

So how worried should the prime minister be?

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