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Donations row referred to police Donations row referred to police
(40 minutes later)
The row over a property developer's donations to Labour has been referred to the police by the Electoral Commission, it has been confirmed. The row over a property developer's donations to Labour has been referred to police by the Electoral Commission.
The Lib Dems and Conservatives had already urged the Metropolitan Police to investigate, after Gordon Brown said donations were not "lawfully declared". The Lib Dems and Conservatives had already urged the Metropolitan Police to investigate after Gordon Brown said donations were not "lawfully declared".
The London force said it would "receive and review" the commission's report and see what the outcome of that was. More than £650,000 given to the party by David Abrahams is to be returned.
Mr Brown has launched his own inquiry and pledged to pay back the money. Meanwhile the Labour leader's campaign manager said "at no point" did Mr Brown know Mr Abrahams was a donor, or was passing on money via four other people.
And he pledged to pay back more than £650,000 donated by David Abrahams, under the names of four other people.
Under the Political Parties, Elections and Referendum Act 2000, political parties must register the details of any donor making gifts through a third party, and report them to the Electoral Commission.
'Completely unacceptable''Completely unacceptable'
In this case, Mr Brown has said donations made over four years, under the names Janet Kidd, Janet Dunn, John McCarthy and Ray Ruddick, were not "lawfully declared" and were "completely unacceptable". Under the Political Parties, Elections and Referendum Act 2000, political parties must register the details of any donor making gifts through a third party, and report them to the Electoral Commission.
Mr Brown has said donations made over four years, under the names Janet Kidd, Janet Dunn, John McCarthy and Ray Ruddick, were "completely unacceptable".
Labour's Harriet Harman came under fire over a £5,000 donation Harman: I acted within law Northern view on scandal
All four people were associates of Mr Abrahams.All four people were associates of Mr Abrahams.
Asked why he had not called in the police himself, Mr Brown said he was following convention in referring the matter first to the Electoral Commission, which was carrying out its own inquiry. Mrs Kidd sent a cheque for £5,000 to Mr Brown's leadership campaign earlier this year, money which it is now known was passed being offered on behalf of Mr Abrahams.
Labour's Harriet Harman came under fire over a £5,000 donation class="" href="/1/hi/uk_politics/7118274.stm">Harman: I acted within law class="" href="/1/hi/uk_politics/7119805.stm">In full: Met Police response class="" href="/1/hi/uk_politics/7119165.stm">Northern view on scandal Mr Brown's campaign manager, Chris Leslie, said he "tore up the cheque" as Mrs Kidd was a new name to him and his colleagues and "it was not the practice of the campaign to accept donations from individuals who were not known to us".
But the Lib Dems say there appear to have been "serious breaches" of the law and police should investigate "fully". He said he passed her details to the team overseeing Harriet Harman's successful bid to be Labour's deputy leader - and that campaign then accepted a £5,000 donation from Mrs Kidd.
Metropolitan Police Commissioner Sir Ian Blair wrote to Lib Dem environment spokesman Chris Huhne, who had called for an investigation, and said: "Donations to political parties are dealt with in the first instance by the Electoral Commission. Ms Harman says she had no idea the money really came from Mr Abrahams, and had accepted it on the basis that Mrs Kidd was a known Labour donor. She said she acted in good faith, "within both the letter and the spirit of the law".
In heated exchanges in Parliament earlier, the Tories pressed Ms Harman for a Commons statement, branding the affair a "sleaze scandal" - but Ms Harman insisted she acted within the law.
The Electoral Commission has now decided to refer matters to the Metropolitan Police for further investigation. The next step is for us to receive and review their reference report Metropolitan Police Commissioner Sir Ian Blair In full: Met Police response Nick Robinson's Newslog
Additionally, it is known that one of Ms Harman's rival contenders, Hilary Benn, turned down the same amount from Ms Kidd, because he had been told it was actually from David Abrahams. He later accepted it under Mr Abrahams' name.
The Lib Dems had said there appeared to have been "serious breaches" of the law wanted police to investigate "fully".
On Thursday, Metropolitan Police Commissioner Sir Ian Blair wrote to Lib Dem environment spokesman Chris Huhne and said: "Donations to political parties are dealt with in the first instance by the Electoral Commission.
"The Crown Prosecution Service and the Electoral Commission have been in dialogue with us this afternoon."The Crown Prosecution Service and the Electoral Commission have been in dialogue with us this afternoon.
"The Electoral Commission has now decided to refer matters to the Metropolitan Police for further investigation. The next step is for us to receive and review their reference report.""The Electoral Commission has now decided to refer matters to the Metropolitan Police for further investigation. The next step is for us to receive and review their reference report."
Internal inquiry Resignation
A spokesman for the Electoral Commission said: "The Electoral Commission has been in dialogue with the CPS since 26 November and this afternoon held further discussions with the CPS and Met Police. A spokesman for the Electoral Commission said the organisation had been "in dialogue with the CPS since 26 November and this afternoon held further discussions with the CPS and Met Police".
"The commission has now decided to refer the matter to the Metropolitan Police Service for further investigation." He went on: "The commission has now decided to refer the matter to the Metropolitan Police Service for further investigation."
BBC correspondent Laura Kuenssberg said this meant the commission's inquiry was now essentially over.
Mr Brown is determined to "take action" to clean up public life Q&A: Labour donations rowMr Brown is determined to "take action" to clean up public life Q&A: Labour donations row
BBC correspondent Laura Kuenssberg said this meant the commission's inquiry was now essentially over.
Mr Brown has launched an internal inquiry, headed up by Labour peer Lord Whitty, who will report back to Lords McCluskey and Harries who will advise on what changes are needed.Mr Brown has launched an internal inquiry, headed up by Labour peer Lord Whitty, who will report back to Lords McCluskey and Harries who will advise on what changes are needed.
The Metropolitan Police have just wrapped up the 19-month, £1.4 million "cash-for-honours" investigation into party funding, which was prompted by an MP's complaint. The Metropolitan Police has just wrapped up the 19-month, £1.4 million "cash-for-honours" investigation into party funding, which was prompted by an MP's complaint.
That inquiry, which cast a shadow over Tony Blair's final months as prime minister, ended with no charges being brought.That inquiry, which cast a shadow over Tony Blair's final months as prime minister, ended with no charges being brought.
Resignation
Labour's general secretary Peter Watt has already resigned over the latest row - saying he knew about Mr Abrahams' funding arrangement, but did not think it broke the rules.Labour's general secretary Peter Watt has already resigned over the latest row - saying he knew about Mr Abrahams' funding arrangement, but did not think it broke the rules.
Labour's chief fundraiser Jon Mendelsohn has said Mr Watt told him about it last month but he had been unhappy about it and had contacted Mr Abrahams with the intention of putting his donations on a proper footing.Labour's chief fundraiser Jon Mendelsohn has said Mr Watt told him about it last month but he had been unhappy about it and had contacted Mr Abrahams with the intention of putting his donations on a proper footing.
We acted at all times within both the letter and the spirit of the law Harriet Harman
Harriet Harman is also under fire, as it has emerged that she accepted a £5,000 donation from Janet Kidd towards her successful campaign to become Labour's deputy leader.
One of her rival contenders, Hilary Benn, had turned down the same amount from Ms Kidd, because he had been told it was actually from David Abrahams - he later accepted it under Mr Abrahams' name. Gordon Brown also turned down a donation from Janet Kidd.
Ms Harman says she had no idea the money came from Mr Abrahams, and had accepted it on the basis that Mrs Kidd was a known Labour donor. She said she acted in good faith, "within both the letter and the spirit of the law".
But in heated exchanges earlier, the Tories demanded she make a Commons statement on the "sleaze scandal that engulfs her".