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Labour donation 'clearly illegal' Labour donation 'clearly illegal'
(about 1 hour later)
Wendy Alexander's campaign for the Scottish Labour leadership broke the law by accepting money from a Jersey-based businessman.Wendy Alexander's campaign for the Scottish Labour leadership broke the law by accepting money from a Jersey-based businessman.
Her campaign manager, Tom McCabe, accepted there was a clear breach of donation rules when a cheque for £950 was accepted from developer Paul Green.Her campaign manager, Tom McCabe, accepted there was a clear breach of donation rules when a cheque for £950 was accepted from developer Paul Green.
The MSP who sought the donation, Charlie Gordon, has quit as Labour's transport spokesman at Holyrood.The MSP who sought the donation, Charlie Gordon, has quit as Labour's transport spokesman at Holyrood.
The party has reported the matter to the Electoral Commission.The party has reported the matter to the Electoral Commission.
During a press conference, Mr McCabe said the incident had cast a shadow over Ms Alexander's leadership campaign. During a press conference, Mr McCabe said the incident had cast a shadow over Ms Alexander's leadership campaign and that arrangements were being made to return the money.
He said it was his understanding that Mr Green's name had been on the cheque. I acted in good faith and I deeply regret the fact that this has happened and that Wendy Alexander has been in any way been implicated Charlie GordonLabour MSP href="http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7110000/newsid_7119400?redirect=7119444.stm&news=1&bbram=1&nbram=1&bbwm=1&nbwm=1" onClick="javascript:newsi.utils.av.launch({el:this});return false;">Full statement
'Good faith' On Wednesday, he said the registered donation was "a UK corporate one".
Ms Alexander's team had been assured that the donation was from a UK-registered company and arrangements are now being made to return the money. However, it is now his understanding that Mr Green's name had been on the cheque.
"Clearly, at the moment, there's been a breech of the law, as it stands," said Mr McCabe, who insisted that all other donations to the campaign were made within the rules.
The Labour MSP and former Scottish finance minister said the priority now was to co-operate with the Electoral Commission and "right a wrong that has clearly happened".
Mr McCabe described Ms Alexander, who became Scottish Labour leader without the need for a leadership contest, as an honourable person.
Campaign team
He added: "She's clearly very upset that having secured the leadership and having done so successfully, this kind of distraction, I think, casts a shadow over the entire campaign."
Making a statement to journalists, Mr Gordon explained: "I asked for a donation from Mr Green, and he asked me to ensure that it was in line with the rules.Making a statement to journalists, Mr Gordon explained: "I asked for a donation from Mr Green, and he asked me to ensure that it was in line with the rules.
"I handed the donation on to the campaign team and conveyed to them that it was a donation under the auspices of Combined Property Services and that Mr Green had a controlling interest in the company.""I handed the donation on to the campaign team and conveyed to them that it was a donation under the auspices of Combined Property Services and that Mr Green had a controlling interest in the company."
The MSP for Glasgow Cathcart went on: "Unfortunately I was wrong in both these assumptions.The MSP for Glasgow Cathcart went on: "Unfortunately I was wrong in both these assumptions.
"I acted in good faith and I deeply regret the fact that this has happened and that Wendy Alexander has been in any way been implicated.""I acted in good faith and I deeply regret the fact that this has happened and that Wendy Alexander has been in any way been implicated."
'Complex' law
Mr Gordon said he had apologised to Mr Green for the distress which the situation had caused him, as well as to Ms Alexander and her campaign team.Mr Gordon said he had apologised to Mr Green for the distress which the situation had caused him, as well as to Ms Alexander and her campaign team.
Mr McCabe also said that modern electoral law was now "extremely complex", adding: "It is now very difficult, I think, to raise money for political campaigns and cover all the bases that make sure you're entirely within the law."
The story emerged after revelations that a property developer gave £650,000 to the UK Labour Party through intermediaries, which may breach electoral law.
David Abrahams gave Labour the money over four years under other people's names.
Prime Minister Gordon Brown has described the situation as unlawful and "completely unacceptable".