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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 police by the Electoral Commission.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 Scotland Yard to investigate after Gordon Brown said donations were not "lawfully declared".The Lib Dems and Conservatives had already urged Scotland Yard to investigate after Gordon Brown said donations were not "lawfully declared".
More than £650,000 given to the party by David Abrahams is to be returned.More than £650,000 given to the party by David Abrahams is to be returned.
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.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.
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. Under the Political Parties, Elections and Referendum Act 2000, details of any donor making gifts through a third party must be registered and reported to the Electoral Commission.
Labour's Harriet Harman came under fire over a £5,000 donation Harman: I acted within law Northern view on scandal
Mr Brown has said donations made over four years, under the names Janet Kidd, Janet Dunn, John McCarthy and Ray Ruddick, were "completely unacceptable".
All four people were associates of Mr Abrahams.
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.
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".
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.
The BBC understands Ms Harman's team were aware that Mr Brown had rejected Mrs Kidd's money but it is unclear if they questioned why the donation was turned down.
He's got to get a grip on his own party; he's got to get a grip on his government Tory leader David Cameron on Gordon Brown
Ms Harman said 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.
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 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 NewslogThe 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
The Lib Dems had said there appeared to have been "serious breaches" of the law wanted police to investigate "fully". Mr Brown said donations from Mr Abrahams over four years - under the names of associates Janet Kidd, Janet Dunn, John McCarthy and Ray Ruddick - were "completely unacceptable".
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 Lib Dems had said there appeared to have been "serious breaches" of the law and wanted police to investigate "fully".
On Thursday, Metropolitan Police Commissioner Sir Ian Blair told the party's environment spokesman, Chris Huhne, in a letter: "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."
Resignation He's got to get a grip on his own party; he's got to get a grip on his government Tory leader David Cameron on Gordon Brown
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". A spokesman for the Electoral Commission said the organisation had been "in dialogue" with the Crown Prosecution Service since Monday.
The police are the only people who can get to the bottom of this Chris Huhne, Liberal Democrat environment spokesman "The commission has now decided to refer the matter to the Metropolitan Police Service for further investigation," he added.
He went on: "The commission has now decided to refer the matter to the Metropolitan Police Service for further investigation."
Mr Huhne said this was "the right decision, precisely because the police are the only people who can get to the bottom of this".Mr Huhne said this was "the right decision, precisely because the police are the only people who can get to the bottom of this".
"I think there are real issues," he told BBC Radio Five Live. "We know [this] from the fact that people have been giving money to the Labour Party under false identities... and that is in itself an offence under electoral law.''"I think there are real issues," he told BBC Radio Five Live. "We know [this] from the fact that people have been giving money to the Labour Party under false identities... and that is in itself an offence under electoral law.''
Tory leader David Cameron said he thought Mr Brown was "in a very bad place" as a result of the affair, which he called one of "a succession of disasters to hit the government".Tory leader David Cameron said he thought Mr Brown was "in a very bad place" as a result of the affair, which he called one of "a succession of disasters to hit the government".
"He's got to get a grip on his own party; he's got to get a grip on his government. But I think we're just seeing a government that really is in terminal decline." "He's got to get a grip on his own party; he's got to get a grip on his government," he told BBC News during a trip to Washington. "But I think we're just seeing a government that really is in terminal decline."
Individual donations
As well as giving money to Labour, Mr Abrahams decided to support certain candidates campaigning to become the party's leader and deputy leader earlier this year.
Mr Brown's leadership campaign was sent a cheque for £5,000 by Mrs Kidd, money which it is now known was being offered on behalf of Mr Abrahams.
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
Mr Brown's campaign manager, Chris Leslie, said he "tore up the cheque" as Mrs Kidd's name was new to him and his colleagues. "It was not the practice of the campaign to accept donations from individuals who were not known to us."
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.
The BBC understands Ms Harman's team were aware that Mr Brown had rejected Mrs Kidd's money but it is unclear if they questioned why the donation was turned down.
Ms Harman said 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".
Labour's Harriet Harman came under fire over a £5,000 donation Harman: I acted within law Northern view on scandal
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.
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 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.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.
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.