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Concern over secret Labour donor Concern over secret Labour donor
(40 minutes later)
A wealthy North East property developer has admitted being behind a series of large donations to the Labour Party.A wealthy North East property developer has admitted being behind a series of large donations to the Labour Party.
David Abrahams gave more than £400,000 to the party through "friends" Janet Kidd and Ray Ruddick because, he said, he did not want to "seek publicity".David Abrahams gave more than £400,000 to the party through "friends" Janet Kidd and Ray Ruddick because, he said, he did not want to "seek publicity".
Justice Secretary Jack Straw has said he is concerned about the arrangement, which was "plainly not transparent".Justice Secretary Jack Straw has said he is concerned about the arrangement, which was "plainly not transparent".
The Electoral Commission has asked Labour to explain the donations, which may breach electoral law.The Electoral Commission has asked Labour to explain the donations, which may breach electoral law.
Mr Straw said: "Whether these arrangements are within the letter of the law they are plainly not transparent. I am concerned about them.Mr Straw said: "Whether these arrangements are within the letter of the law they are plainly not transparent. I am concerned about them.
"I shall ask both the Electoral Commission and my officials for immediate advice on what action should be taken.""I shall ask both the Electoral Commission and my officials for immediate advice on what action should be taken."
I can't stand Labour - I can't stand any politicians Ray RuddickLabour donorI can't stand Labour - I can't stand any politicians Ray RuddickLabour donor
Under electoral law, people making donations on behalf of others must give full details of the person providing the money.Under electoral law, people making donations on behalf of others must give full details of the person providing the money.
David Abrahams has told the BBC he will declare his donation if he is required to.David Abrahams has told the BBC he will declare his donation if he is required to.
According to Electoral Commission records, Mr Ruddick, a builder, who drives an old Ford Transit van and lives in a former council house in Newcastle, is Labour's third biggest donor.According to Electoral Commission records, Mr Ruddick, a builder, who drives an old Ford Transit van and lives in a former council house in Newcastle, is Labour's third biggest donor.
When he was contacted by the Mail on Sunday newspaper he initially told it he knew nothing about the donations - apart from a payment of £80,000 made in July.When he was contacted by the Mail on Sunday newspaper he initially told it he knew nothing about the donations - apart from a payment of £80,000 made in July.
He told the paper's reporter: "I can't stand Labour. I can't stand any politicians."He told the paper's reporter: "I can't stand Labour. I can't stand any politicians."
'Private person''Private person'
Mr Abrahams told BBC News it was he who had funded the donations by his "friend and colleague" Mr Ruddick and Mrs Kidd, who is reported to be his secretary.Mr Abrahams told BBC News it was he who had funded the donations by his "friend and colleague" Mr Ruddick and Mrs Kidd, who is reported to be his secretary.
Gordon Brown needs to come clean quickly and explain what has been going on Chris Grayling, shadow work and pensions secretaryGordon Brown needs to come clean quickly and explain what has been going on Chris Grayling, shadow work and pensions secretary
Mr Abrahams said: "I'm a member of the Labour Party and have been for nearly 40 years, since I was 15.Mr Abrahams said: "I'm a member of the Labour Party and have been for nearly 40 years, since I was 15.
"I have always been fortunate enough to be able to make donations to worthwhile causes including the Labour Party.""I have always been fortunate enough to be able to make donations to worthwhile causes including the Labour Party."
He said he had "gifted funds to my friends and colleagues" so they could make donations on his behalf.He said he had "gifted funds to my friends and colleagues" so they could make donations on his behalf.
He said he had not donated the money under his own name because he was "a very private person" who "did not seek publicity".He said he had not donated the money under his own name because he was "a very private person" who "did not seek publicity".
Labour inquiryLabour inquiry
According to the Electoral Commission, Mr Ruddick has donated £196,850 to Labour and Mrs Kidd £185,000 since 2003.According to the Electoral Commission, Mr Ruddick has donated £196,850 to Labour and Mrs Kidd £185,000 since 2003.
They are listed as having given the party £222,000 between them since Gordon Brown became leader, making them Mr Brown's third biggest donors after Lord Sainsbury and businessman Mahmoud Khayami.They are listed as having given the party £222,000 between them since Gordon Brown became leader, making them Mr Brown's third biggest donors after Lord Sainsbury and businessman Mahmoud Khayami.
Janet Kidd is also listed as making a donation to Harriet Harman's successful campaign to be Labour deputy leader, while Mr Abrahams is listed, under his own name, as a donor to Ms Harman's defeated rival Hilary Benn.Janet Kidd is also listed as making a donation to Harriet Harman's successful campaign to be Labour deputy leader, while Mr Abrahams is listed, under his own name, as a donor to Ms Harman's defeated rival Hilary Benn.
Michael Kidd, Mrs Kidd's husband, told BBC Radio Five Live his wife had been given the money by Mr Abrahams "with the clear instruction to donate it to the Labour Party".
"It was never a gift. She did it because she works for him part time and she saw it as part of her job. She was given no money to do this," Mr Kidd said.
'Mysterious'
The Labour Party earlier confirmed that its General Secretary Peter Watt had been asked to look into the donations.The Labour Party earlier confirmed that its General Secretary Peter Watt had been asked to look into the donations.
"It is important that the Labour Party is beyond reproach in this matter," said a spokesman."It is important that the Labour Party is beyond reproach in this matter," said a spokesman.
"The general secretary has therefore been asked to investigate this issue and report his findings to the party's treasurer.""The general secretary has therefore been asked to investigate this issue and report his findings to the party's treasurer."
Commenting on the donations, Conservative frontbencher Chris Grayling said: "This is all extremely mysterious.Commenting on the donations, Conservative frontbencher Chris Grayling said: "This is all extremely mysterious.
"It is bound to generate suspicions about what the Labour Party has been up to."It is bound to generate suspicions about what the Labour Party has been up to.
"Gordon Brown needs to come clean quickly and explain what has been going on.""Gordon Brown needs to come clean quickly and explain what has been going on."