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Harman facing donor row grilling I acted within law, says Harman
(about 4 hours later)
Labour's deputy leader Harriet Harman is to be put on the spot over unlawful donations when she faces MPs. Harriet Harman has told MPs she acted "within both the letter and spirit of the law" in the row over a property developer's disguised donations.
The donations row was prompted by the news that property developer David Abrahams had given more than £650,000 to Labour under other people's names. She came under fire for accepting a £5,000 donation for her deputy leader bid from Janet Kidd, who it turns out was acting on behalf of David Abrahams.
Gordon Brown has said that donations to Labour from Mr Abrahams, given under other people's names, were not lawful.
For the Tories, Theresa May said Ms Harman was facing a "sleaze scandal".
Police probe urged
The donations row this week was prompted by the revelation that more than £650,000 in donations had been made to Labour since 2003 by Mr Abrahams under other people's names.
That breaks the rules on donations and has prompted calls from the Lib Dems and Tories for a police investigation.That breaks the rules on donations and has prompted calls from the Lib Dems and Tories for a police investigation.
Ms Harman said she took "in good faith" £5,000 from Janet Kidd without knowing it was actually Mr Abrahams' money. The public knows sleaze when they see it Theresa MayShadow Commons leader class="" href="/1/hi/uk_politics/7115626.stm">Q&A: Donations row class="" href="/1/hi/uk_politics/7116787.stm">Key players
'No evidence' Mrs May told MPs: "The Leader of the House, the prime minister and the Labour Party treasurer are like the three wise monkeys.
She will face MPs for her weekly grilling as Leader of the House of Commons at about 1130 GMT. "They see no evil, hear no evil, and speak no evil. Quite simply it won't wash.
The Conservatives have a series of questions they want to ask Ms Harman about whether she knew the money was from Mr Abrahams and how the donation to her deputy leadership campaign came to be offered. "The public knows sleaze when they see it. The people know spin when they hear it. And the voters will know what to do when they have their say. They'll get rid of this sleazy Labour government."
Money refused
Mr Abrahams also offered money, using Janet Kidd's name, to Gordon Brown's leadership bid and Hilary Benn and Ms Harman's deputy leadership bids.
Mr Brown refused the money as he did not know Ms Kidd, Mr Benn accepted it only when the donation was made in Mr Abrahams' name.
You can huff and puff but you will not blow this Leader of the House down Harriet Harman Sketch: PM's Commons clash
Ms Harman said she took "in good faith" £5,000 without knowing it was actually Mr Abrahams' money.
During her weekly grilling by MPs as Leader of the House of Commons, she was asked by Mrs May to make a Commons statement on the issue.
She said that her team accepted the money after checking Janet Kidd was on the electoral roll and that she was an established Labour Party donor.
Standards debate
Ms Harman told Mrs May: "You can huff and puff but you will not blow this Leader of the House down."
Both she and her deputy leadership team had "acted at all times within both the letter and the spirit of the law," she said.
She also said there would be a debate in the Commons next week on standards in public life.
DONORS Ray Ruddick - £196,850Janet Kidd - £185,000 since 2003John McCarthy - £257,125 since 2004Janet Dunn - £25,000Source: Electoral Commission Profile: David Abrahams Donor's business interestsDONORS Ray Ruddick - £196,850Janet Kidd - £185,000 since 2003John McCarthy - £257,125 since 2004Janet Dunn - £25,000Source: Electoral Commission Profile: David Abrahams Donor's business interests
Gordon Brown came to her defence on Wednesday saying there was not "one iota" of evidence that she knew about the donation's true origins before Saturday. Gordon Brown said on Wednesday there was not "one iota" of evidence that Ms Harman knew about the donation's true origins before Saturday.
But her position was not helped by the revelation that her fellow deputy leadership contender, Hilary Benn, rejected a donation from Janet Kidd after being told by one of his team, Baroness Jay, that the money was actually from Mr Abrahams. Mr Benn has said he rejected the donation from Janet Kidd after being told by one of his team, Baroness Jay, that the money was actually from Mr Abrahams.
Mr Abrahams, who says he donated money under other people's names to protect his privacy and did not know it broke laws, then agreed to give money to Mr Benn in his own name instead.Mr Abrahams, who says he donated money under other people's names to protect his privacy and did not know it broke laws, then agreed to give money to Mr Benn in his own name instead.
'Concealment' 'Absolutely wrong'
Meanwhile Mr Brown has said his team turned down a donation from Janet Kidd during his leadership campaign because she was not known to them. Ms Harman's husband, Jack Dromey, who is Labour's treasurer, was asked on Wednesday if he had known that Labour had been receiving donations from Mr Abrahams under Janet Kidd and three other people's names.
Ms Harman said that her team accepted the money after checking Janet Kidd was on the electoral roll and that she was an established Labour Party donor.
The house has noticed the prime minister's remarkable transformation in the last few weeks from Stalin to Mr Bean Vincent CableLib Dems Q&A: Donations row Key players
That explanation led to Ms Harman's husband, Jack Dromey, who is Labour's treasurer, being asked on Wednesday if he had known that Labour had been receiving donations from Mr Abrahams under Janet Kidd and three other people's names.
He did not specifically deny that, saying instead that the donations were "absolutely wrong" and saying "complete concealment" when asked if he or his wife had known about them.He did not specifically deny that, saying instead that the donations were "absolutely wrong" and saying "complete concealment" when asked if he or his wife had known about them.
On Monday Labour's general secretary, Peter Watt, resigned after admitting he knew such donations had been made to the party in recent years. He said he did not realise there was anything wrong with the practice.On Monday Labour's general secretary, Peter Watt, resigned after admitting he knew such donations had been made to the party in recent years. He said he did not realise there was anything wrong with the practice.
'Beggars belief'
And on Wednesday it emerged that the party's chief fundraiser, Jon Mendelsohn, was told about the disguised donations last month, shortly after his appointment.And on Wednesday it emerged that the party's chief fundraiser, Jon Mendelsohn, was told about the disguised donations last month, shortly after his appointment.
He said he was unhappy about it, and determined it would not continue, but did not tell anyone else as he wanted to sort out the matter with Mr Abrahams personally. He said he was told they "fully complied with the law" but was unhappy about it and determined it would not continue, but did not tell anyone else as he wanted to sort out the matter with Mr Abrahams personally.
This is something that has got to be cleaned up in the interests of the whole of public life and I'm determined to take that action Gordon Brown at PMQs Sketch: PM's Commons clash
It is not clear if any other people in the party knew about the donations.It is not clear if any other people in the party knew about the donations.
On Wednesday, at prime minister's questions, Tory leader David Cameron said there had been "disaster after disaster" since Mr Brown took over, and asked if he was "cut out for the job".
He said Mr Brown's explanation "beggars belief" and asked why he had not called in the police to probe what he had agreed were "unlawful" donations.
Lib Dem acting leader Vince Cable said there seemed to have been "serious" breaches of the law" and called for a police investigation.
Mr Cable said the prime minister had gone "from Stalin to Mr Bean" in a matter of weeks.
Mr Brown said he would be judged on his record for delivering low inflation and investing in the NHS and education and said he had acted immediately he found out about the donations.
This action included launching inquiries, informing the Electoral Commission of the position, and returning the money.