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Alexander apology over donation Apology as donations row deepens
(about 2 hours later)
The leader of the Scottish Labour Party has publicly apologised for the funding row that has engulfed her party. Scottish Labour's leader has apologised for the funding row which has hit her party - as it emerged that Labour had received a second illegal donation.
Wendy Alexander said she "deeply regrets" that her Labour leadership campaign accepted an illegal donation. Wendy Alexander said she "deeply regrets" that her leadership campaign accepted a payment from businessman Paul Green which broke donation rules.
Her comments came as the Electoral Commission announced it would examine all donations made to Ms Alexander during her leadership campaign. The Electoral Commission has said it will examine all donations made to Ms Alexander during the campaign.
The businessman who made the illegal donation has revealed that he made another contribution to Labour. Mr Green then revealed he had made a second gift to Labour.
Paul Green, who is based in Jersey, gifted £950 to the Glasgow South branch of the party. The property developer, who is based in the Channel Islands, gave £950 to the Glasgow South branch of the party.
Personal letter
That is the same figure he donated to Ms Alexander's leadership campaign.That is the same figure he donated to Ms Alexander's leadership campaign.
When asked if I could donate, I was told there was no problem Paul Green
It is illegal for people who are based offshore to donate to a UK political party.It is illegal for people who are based offshore to donate to a UK political party.
Mr Green said he had received a personal letter from Ms Alexander thanking him for his contribution.Mr Green said he had received a personal letter from Ms Alexander thanking him for his contribution.
The property developer said he was "very angry" to have become embroiled in a national controversy surrounding political donations. "I am very angry after innocently becoming embroiled in a national controversy surrounding donations to the Scottish Labour Party," he said.
I deeply regret that this situation has occurred... I am very sorry for it Wendy AlexanderScottish Labour leader class="" href="http://www.bbc.co.uk/blogs/thereporters/briantaylor/2007/11/grave_times_for_alexander.html">Read Brian Taylor's blog "However, I have been completely exonerated. My donation to the Wendy Alexander campaign was open and above board.
"When asked if I could donate, I was told there was no problem."
Damaged party
In a statement, the 65-year-old said no questions had been raised when he made the donation to the Glasgow South Labour Party in April.
Mr Green added that he was "dismayed" that Charlie Gordon, the MSP who sought the leadership campaign donation, was likely to lose his career over the row.
"It has damaged the Labour Party that I support in Scotland and it was all so unnecessary if the party had only applied the rules," he added.
I am not aware of any other donations made by Mr Green to any part of the Labour Party or to any Labour elected member Charlie GordonLabour MSP Read Brian Taylor's blog
"I cannot understand why they continued to maintain that the donation had come through a UK company when I had a letter from Wendy Alexander thanking me personally."
Labour said it was not told about Mr Green's earlier donation to the Glasgow South constituency.
The party said the donation should have been referred to its compliance unit - and would have been rejected if that had happened.
Mr Gordon confirmed on Friday that he had asked Mr Green to make the donation in April.
He said he had written to the chairman of the Glasgow South party after he realised the "invalidity" of the latest donation.
'In good faith'
In that letter he told the chairman that he may have made a similar error interpreting the donation rules and advised him to notify the Electoral Commission.
Mr Gordon has apologised to the party chairman and Mr Green, and stressed that he had acted in good faith.
I deeply regret that this situation has occurred... I am very sorry for it Wendy AlexanderScottish Labour leader
"I am not aware of any other donations made by Mr Green to any part of the Labour Party or to any Labour elected member," he added.
The Electoral Commission said on Friday that it had written to Ms Alexander to request details of the donations received by her campaign.The Electoral Commission said on Friday that it had written to Ms Alexander to request details of the donations received by her campaign.
In her first public comment on the revelations, Ms Alexander told reporters: "I deeply regret that this situation has occurred.In her first public comment on the revelations, Ms Alexander told reporters: "I deeply regret that this situation has occurred.
"I am very sorry for it. I realise that you will have many questions but it's a matter for the Electoral Commission."I am very sorry for it. I realise that you will have many questions but it's a matter for the Electoral Commission.
"They are looking in to it and it really is inappropriate for me to comment on any specifics at this time.""They are looking in to it and it really is inappropriate for me to comment on any specifics at this time."
Clear contradictions
She said a cheque had been returned to the commission, which was standard procedure.She said a cheque had been returned to the commission, which was standard procedure.
Constitutional commission The SNP said it expected the Electoral Commission to refer matters to the police for investigation.
The donation had been sought by Labour MSP Charlie Gordon, who has resigned as the party's transport spokesman over the row. The party said there were "clear contradictions" between statements made on behalf of Ms Alexander and claims made by Mr Green.
Ms Alexander was speaking after delivering a speech on Scotland's place in the UK, which had aimed to drawing a line under the controversy. A spokesman said Ms Alexander's leadership of Labour was becoming "increasingly untenable".
She called for the creation of a Scottish constitutional commission to look into the devolution settlement.
She said more tax raising powers for Holyrood should be at the heart of its work, instead of the one-off block grant the Scottish Government currently received from Westminster.
Charlie Gordon may have taken the cheque but Wendy Alexander must take the responsibility Roseanna CunninghamSNP MSP
The SNP has claimed that Labour is in "meltdown" on both sides of the border.
SNP MSP Roseanna Cunningham said the case "casts a huge question mark over Wendy Alexander's judgement and her leadership abilities".
"Charlie Gordon may have taken the cheque but Wendy Alexander must take the responsibility," she said.
"It was her campaign, it is her party and this is a mess of her own making. She cannot continue to hide.
"Ms Alexander has a lot of questions to answer, and I am sure that both the Electoral Commission and the police will be keen to ask them."
Referred to police
The Scottish Conservatives' deputy leader, Murdo Fraser, said: "This is a huge embarrassment for the Labour Party in Scotland.
"The way in which Labour has handled this issue demonstrates either inability or reluctance to get to the core of the problem. Neither explanation is impressive."
South of the border, the row over donations to Labour by property developer David Abrahams 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".