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Labour boss quits over donations Labour boss quits over donations
(10 minutes later)
Labour general secretary Peter Watt has resigned following the revelation that a property developer made donations to the party via two colleagues.Labour general secretary Peter Watt has resigned following the revelation that a property developer made donations to the party via two colleagues.
David Abrahams gave more than £400,000 through associates, claiming he wanted to avoid publicity.David Abrahams gave more than £400,000 through associates, claiming he wanted to avoid publicity.
Mr Watt told a meeting of officers of Labour's National Executive Committee that he had known about the arrangement but not that it might be illegal. Mr Watt told a meeting of officers of Labour's National Executive Committee he had known about the arrangement.
He added that he had always "prided myself on having complete integrity". Under the law, people making donations on behalf of others must give details of the person providing the money.
'Integrity' 'Highest standards'
Under electoral law, people making donations on behalf of others must give full details of the person providing the money. In a statement, Mr Watt said he had always "prided myself on having complete integrity" but added that, as general secretary, he was legally responsible for the reporting obligations for the party.
Mr Watt said that, as general secretary, he was legally responsible for the reporting obligations for the party.
I was advised that, unbeknown to me, there were additional reporting requirements Peter WattI was advised that, unbeknown to me, there were additional reporting requirements Peter Watt
He added: "I was aware of arrangements whereby David Abrahams gave gifts to business associates and a solicitor who were permissible donors and who in turn passed them on to the Labour Party and I believed at the time my reporting obligations had been appropriately complied with.He added: "I was aware of arrangements whereby David Abrahams gave gifts to business associates and a solicitor who were permissible donors and who in turn passed them on to the Labour Party and I believed at the time my reporting obligations had been appropriately complied with.
"As a result of press coverage over the weekend, I sought legal advice on behalf of the Labour Party. I was advised that, unbeknown to me, there were additional reporting requirements. "As a result of press coverage over the weekend, I sought legal advice on behalf of the Labour Party. I was advised that, unbeknown to me, there were additional reporting requirements."
"Once I discovered this error, I immediately notified the officers of the National Executive Committee. Mr Watt said he had informed the National Executive Committee straight away.
"I take full responsibility for the Labour Party's reporting obligations. Consistent with my own and the party's commitment to the highest standards in public life, it is with great sadness I have decided to resign my position as general secretary with immediate effect." He added: "Consistent with my own and the party's commitment to the highest standards in public life, it is with great sadness I have decided to resign my position as general secretary with immediate effect."
'Inept''Inept'
Mr Abrahams, who gave the money through colleagues Janet Kidd and Ray Ruddick, told the BBC he would declare the donation if required to.Mr Abrahams, who gave the money through colleagues Janet Kidd and Ray Ruddick, told the BBC he would declare the donation if required to.
Labour is investigating the donations and the Electoral Commission has also asked the party to explain.Labour is investigating the donations and the Electoral Commission has also asked the party to explain.
Former Labour treasurer Lady Prosser told BBC Radio 4's The World at One: "It's completely inept when there's been already questions raised in the minds of the public and others about ways in which monies are handled.Former Labour treasurer Lady Prosser told BBC Radio 4's The World at One: "It's completely inept when there's been already questions raised in the minds of the public and others about ways in which monies are handled.
I have always been fortunate enough to be able to make donations to worthwhile causes including the Labour Party David AbrahamsI have always been fortunate enough to be able to make donations to worthwhile causes including the Labour Party David Abrahams
"It seems to me to allow this to happen was completely daft.""It seems to me to allow this to happen was completely daft."
Justice Secretary Jack Straw said he was concerned about the arrangement, which was "plainly not transparent".Justice Secretary Jack Straw said he was concerned about the arrangement, which was "plainly not transparent".
When he was contacted by the Mail on Sunday newspaper, Mr Ruddick initially said 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, Mr Ruddick initially said he knew nothing about the donations - apart from a payment of £80,000 made in July.
The builder, who drives a Ford Transit van and lives in a former council house in Newcastle, told the newspaper's reporter: "I can't stand Labour. I can't stand any politicians."The builder, who drives a Ford Transit van and lives in a former council house in Newcastle, told the newspaper's reporter: "I can't stand Labour. I can't stand any politicians."
Mr Abrahams told BBC News he had funded the donations by his secretary Mrs Kidd and his "friend and colleague" Mr Ruddick.Mr Abrahams told BBC News he had funded the donations by his secretary Mrs Kidd and his "friend and colleague" Mr Ruddick.
'Very private''Very private'
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".He said he had not donated the money under his own name because he was "a very private person".
According to the Electoral Commission, Mr Ruddick has donated £196,850 and Mrs Kidd £185,000 since 2003.According to the Electoral Commission, Mr Ruddick has donated £196,850 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.
Conservative frontbencher Chris Grayling said: "This is all extremely mysterious. Gordon Brown needs to come clean quickly and explain what has been going on."Conservative frontbencher Chris Grayling said: "This is all extremely mysterious. Gordon Brown needs to come clean quickly and explain what has been going on."
Liberal Democrat home affairs spokesman Nick Clegg said: "I think it is precisely that lack of transparency that does so much damage not only to Labour - which it should - but to all politicians and all political parties."Liberal Democrat home affairs spokesman Nick Clegg said: "I think it is precisely that lack of transparency that does so much damage not only to Labour - which it should - but to all politicians and all political parties."