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Three forces probe donors scandal

Source ITN

Updated on 03 December 2007

Three separate police forces are now probing allegations surrounding Labour funding with Gordon Brown coming under mounting pressure over donor scandals.

Scotland Yard is already investigating how the identity of property developer David Abrahams, who gave more than £600,000, was kept secret from regulators.

Detectives in Scotland are examining complaints about a donation to the party's Scottish leader Wendy Alexander from a Jersey-based businessman.

And Durham police will be talking to Liberal Democrat MP Chris Huhne about his concerns over the decision to grant Labour's "disguised" donor permission to build a business park.

The row over Mr Abrahams' donations intensified over the weekend when the businessman claimed as many as ten senior Labour officials were aware of his funding arrangements.

Peter Watt resigned as the party's general secretary after admitting he was aware of the practice - but the Prime Minister says he only found out when it was exposed by a newspaper.

But Tory leader David Cameron said it "beggars belief" that the Prime Minister had been kept in the dark and accused Mr Brown of trying to "spin his way out of a scandal".

Mr Abrahams also claimed the chief fundraiser appointed by Mr Brown, Jon Mendelsohn, had not only known since April that he was using proxy donors but said it sounded "a good idea".

Mr Mendelsohn dismissed the allegation as "fictional and completely untrue".

As the Westminster row raged on, attention also turned north of the border after a formal complaint was lodged with Strathclyde Police by a Scottish National Party researcher.

Ms Alexander vowed not to quit over the £950 donation which breached a ban on accepting funding from people based outside the UK, denying she had done anything "intentionally" wrong.

Mr Brown was reported to have urged her not to resign amid concerns it could increase pressure for similar scalps at Westminster.

Mr Huhne will discuss his concerns over Mr Abrahams' business interests with Detective Chief Superintendent Ian Scott, head of the Durham Constabulary CID.

They surround the decision to lift objections to a company controlled by the Labour donor building a business park in County Durham.

Communities Secretary Hazel Blears has already announced a review of the circumstances, although she told MPs last week that ministers were not involved in the decision.

Speaking ahead of his meeting with Durham Police, Mr Huhne said: "Only if donations are openly declared can we be sure that donors have not benefited from Government decisions and that there is no link between the two."

Meanwhile, Mr Cameron raised fresh questions about Mr Brown's suitability for 10 Downing Street.

He was "not doing a very good job" and had failed in his promises to be competent, provide change and restore trust in politics, he said.

The Tory leader indicated he was happy to resume stalled cross-party talks on funding reforms - including a £50,000 cap on donations - a policy he proposed almost two years ago.

© Independent Television News Limited 2007. All rights reserved.

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