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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 he had known about the arrangement. | Mr Watt told a meeting of officers of Labour's National Executive Committee he had known about the arrangement. |
| Under the law, people making donations on behalf of others must give details of the person providing the money. | Under the law, people making donations on behalf of others must give details of the person providing the money. |
| 'Highest standards' | 'Highest standards' |
| 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. | 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. |
| This is a government which appears to be in a state of chaos, unable to get on with the job of governing Britain Chris GraylingConservatives | |
| 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." |
| Mr Watt said he had informed the National Executive Committee straight away. | Mr Watt said he had informed the National Executive Committee straight away. |
| 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." | 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 Abrahams | I 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: "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: "I think it's a question to put to Gordon Brown - did he have any idea about these donations? | |
| "I wait with interest to hear what he has to say. But the broader issue is that day after day, week after week, we get announcements, get issues, get crises. | |
| "This is a government which appears to be in a state of chaos, unable to get on with the job of governing Britain." | |
| 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." |