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Police asked to probe donations Police asked to probe donations
(about 2 hours later)
Lib Dem leader contender Chris Huhne has asked the Metropolitan Police to investigate donations given to Labour by property developer David Abrahams. The Liberal Democrats have formally urged the police to investigate apparent "serious breaches" of party funding laws by Labour.
Acting leader Vincent Cable said it was essential to "establish the facts" and press charges if necessary.
Lib Dem leadership hopeful Chris Huhne has written to Met Police boss Sir Ian Blair asking him to investigate.
Gordon Brown has said donations made to Labour through intermediaries were unlawful and has announced an inquiry.
But, asked in prime minister's questions earlier why he had not called in the police, he said he had followed convention in referring the matter to the Electoral Commission.
Investigate fully
The commission has begun its own inquiry and Mr Brown has asked Labour veteran Lord Whitty to hold an internal inquiry.
Mr Abrahams gave £663,975 to Labour, but under four other people's names.Mr Abrahams gave £663,975 to Labour, but under four other people's names.
Prime Minister Gordon Brown has already said that was unlawful and said it must not be allowed to happen again. In a statement, Mr Cable said: "At first sight it appears that there may have been serious breaches of the law in relation to senior figures in the Labour Party accepting proxy donations from David Abrahams.
Mr Huhne told the BBC's Daily Politics he had written to Met Police chief Sir Ian Blair asking him to look into the events and any breach of the law. Frankly we do need a police inquiry, we need to clear the air Chris HuhneLib Dems
Mr Huhne is battling with Nick Clegg to succeed Sir Menzies Campbell as Lib Dem leader. "It is essential to establish the facts in this case, and for anyone who has broken the law to take the consequences for their actions."
The Metropolitan Police has recently finished a lengthy inquiry - prompted by the Scottish nationalist MP Angus MacNeil's complaint - into allegations that honours were given in return for cash. He said the police should investigate "fully" and the Crown Prosecution Service should decide if anyone should be charged.
That inquiry, which cast a shadow over Tony Blair's final months as prime minister, ended with no charges being brought by the Crown Prosecution Service. The Metropolitan Police has recently finished a lengthy, £1.4m inquiry - prompted by the Scottish nationalist MP Angus MacNeil's complaint - into allegations that honours were given in return for cash.
A spokeswoman for the Metropolitan Police said the force had not yet received Mr Huhne's letter, nor had the Electoral Commission requested that it investigate Mr Abraham's donations. Cash-for-honours
That inquiry, which cast a shadow over Tony Blair's final months as prime minister, ended with no charges being brought.
Earlier Mr Huhne, who is battling with Nick Clegg to become the Lib Dems' next leader, said there were "conflicts of interest" in the inquiries announced by Mr Brown. He pointed out that Lord McCluskey had been a solicitor general in Harold Wilson's government.
"Frankly we do need a police inquiry. We need to clear the air and get the police involved," he told the BBC's Daily Politics.
A Metropolitan Police spokeswoman said the force had not yet received Mr Huhne's letter, nor had the Electoral Commission requested that it investigate Mr Abraham's donations.
Mr MacNeil said he had not written to the police this time as he believed the commission was taking it seriously.Mr MacNeil said he had not written to the police this time as he believed the commission was taking it seriously.
But he added: "I understand Chris Huhne has made a complaint to the Metropolitan Police over Labour's illegal funding scandal. But he challenged Mr Huhne or Mr Clegg to "lead by example" and commit to repaying the £2.4m donation their party received from Michael Brown in 2005.
"I would politely challenge both the Liberal leadership hopefuls to commit themselves to repaying the £2.4m donation made by Michael Brown back in 2005. The question is, are Chris Huhne and Nick Clegg prepared to lead by example?" The following year, Mr Brown was jailed for perjury.
The year after giving the Lib Dems £2.4m, Mr Brown was jailed for perjury.