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New donor questions for Osborne Osborne was 'right', says Cameron
(about 1 hour later)
The shadow chancellor is likely to face more questions over claims he tried to solicit a £50,000 donation for the Tories from a Russian billionaire. David Cameron has repeated his support for shadow chancellor George Osborne saying he was "right" not to ask for any money from a Russian billionaire.
Financier Nathaniel Rothschild insists George Osborne did discuss a donation from Oleg Deripaska in front of a witness at his Corfu home in August. The Conservatives deny claims Mr Osborne tried to solicit a £50,000 donation from Oleg Deripaska.
He also says Mr Osborne asked about ways to get round the ban on overseas residents donating to UK parties. But financier Nathaniel Rothschild says he did discuss a donation in front of a witness at his Corfu home in August.
Mr Osborne has denied these claims and has been backed by David Cameron. Mr Osborne has also denied claims that he asked about ways to get round a ban on overseas donations to UK parties.
The Tory leader said the shadow chancellor had shown the "right judgement" by not asking for or taking any money. Speaking outside his home on Wednesday morning, Conservative leader Mr Cameron said: "What matters is what you do and what you say and George Osborne was right not to ask for any money, the Conservative Party was right not to accept any money.
But Labour MP and chairman of the Public Administration Select Committee Tony Wright said Mr Osborne had actually made a "fundamental misjudgement". "And I think we have been right to set out in full all the meetings and everything that took place and others should do the same."
YachtYacht
But Labour MP and chairman of the Public Administration Select Committee Tony Wright said Mr Osborne had actually made a "fundamental misjudgement".
"The simple fact is once the issue of donations arose in the context of a foreign billionaire, George Osborne should have run a mile and not sought to get closer," he said."The simple fact is once the issue of donations arose in the context of a foreign billionaire, George Osborne should have run a mile and not sought to get closer," he said.
People make suggestions all the time about donations to the Conservative Party George Osborne, Shadow chancellor Read Nick's blog in fullRead Robert Peston's blogWho's who in the rowPeople make suggestions all the time about donations to the Conservative Party George Osborne, Shadow chancellor Read Nick's blog in fullRead Robert Peston's blogWho's who in the row
Mr Rothschild has said he will not "back down" and is prepared to defend his claims in court.Mr Rothschild has said he will not "back down" and is prepared to defend his claims in court.
He alleged he had discussed the idea of a donation via Mr Deripaska's UK firm, LDV Ltd, three times on 24 August - with Mr Osborne and Tory fundraiser Andrew Feldman.He alleged he had discussed the idea of a donation via Mr Deripaska's UK firm, LDV Ltd, three times on 24 August - with Mr Osborne and Tory fundraiser Andrew Feldman.
He said the first discussion, held in his Corfu home, was witnessed by a New York fund manager, James Goodwin.He said the first discussion, held in his Corfu home, was witnessed by a New York fund manager, James Goodwin.
He said Mr Goodwin also "recalled" that the subject of a donation "arose briefly" later when the men were guests on Mr Deripaska's yacht but the "conversation gained no traction".He said Mr Goodwin also "recalled" that the subject of a donation "arose briefly" later when the men were guests on Mr Deripaska's yacht but the "conversation gained no traction".
Mr Rothschild said the subject was raised again with Mr Osborne later that evening, in which he said the shadow chancellor was "interested in whether and how such a donation could be secured".
'More questions''More questions'
Mr Rothschild said the subject was raised again with Mr Osborne later that evening, in which he said the shadow chancellor was "interested in whether and how such a donation could be secured".
Furthermore, he added that during a conversation with Mr Feldman in the middle of September, he was "left with the impression that the Conservative Party remained interested in pursuing it".Furthermore, he added that during a conversation with Mr Feldman in the middle of September, he was "left with the impression that the Conservative Party remained interested in pursuing it".
On Tuesday, Mr Osborne denied asking for any money, but did not rule out having discussed a donation.On Tuesday, Mr Osborne denied asking for any money, but did not rule out having discussed a donation.
HAVE YOUR SAYThis is a fuss over a deal that never wasPeter, Cambridge, UKSend us your comments
He said: "People make suggestions all the time about donations to the Conservative Party, but we are always clear and rigorous [in assessing these]."He said: "People make suggestions all the time about donations to the Conservative Party, but we are always clear and rigorous [in assessing these]."
The Conservatives say the possibility of a donation was raised by Mr Rothschild, but any suggestion that money could be routed through LDV Ltd was rejected.The Conservatives say the possibility of a donation was raised by Mr Rothschild, but any suggestion that money could be routed through LDV Ltd was rejected.
The Lib Dems said a "lot more questions" had to be answered about the affair and called for a parliamentary inquiry.The Lib Dems said a "lot more questions" had to be answered about the affair and called for a parliamentary inquiry.
Former Chair of the Committee on Standards in Public Life, Sir Alistair Graham, says facilitating a donation from someone who is not allowed to give money to a political party could be an offence. Former Chair of the Committee on Standards in Public Life, Sir Alistair Graham, told the BBC it showed party funding continued to be an "awkward issue" for all parties adding: "Politics never stops surprising you about how nasty it can get."
But he said the chances of Mr Osborne facing criminal charges are very slim.
Sir Alistair said that under the 2000 Political Parties Act, "the term used is facilitation".
"If you're facilitating, you're setting in train, then potentially it could be a criminal offence.
"But of course no donation was received and of course there is this conflict of evidence between Nat Rothschild on the one hand and what George Osborne is saying on the other."