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Harman rejects Brown damage claim Brown denies war over donations
(about 2 hours later)
Labour deputy leader Harriet Harman has "absolutely" denied damaging Gordon Brown's reputation after her aides accepted £5,000 from a proxy donor. Downing Street has played down reported tensions between Gordon Brown and Labour deputy leader Harriet Harman over proxy donations to the party.
Ms Harman's campaign took the cash from an associate of businessman David Abrahams after the contact had been passed to them by Mr Brown's team. The prime minister's spokesman said he was "fully supportive" of Ms Harman and "focused" on running the country.
Ms Harman said she had "complied with the letter and spirit of the law and I think Gordon Brown has done the same". Ms Harman earlier denied harming Mr Brown's reputation after it emerged her aides accepted £5,000 from Janet Kidd, an associate of David Abrahams.
It comes as police launched a probe into Mr Abrahams' donations. Police have launched an inquiry into Mr Abrahams' Labour donations.
In total, the North East property developer gave Labour more than £650,000 via four associates.
'Unacceptable''Unacceptable'
The North East property developer gave more than £650,000 to the party, via four associates, over four years.
See how David Abrahams made donations to the Labour PartyIn graphicsSee how David Abrahams made donations to the Labour PartyIn graphics
Mr Brown has said all the donations will be returned, as they were unlawful and "completely unacceptable". Mr Brown has said all the money will be returned, as the donations were unlawful and "completely unacceptable".
It has emerged that Ms Harman's deputy leadership campaign team accepted £5,000 from Mr Abrahams' secretary, Janet Kidd. Downing Street has insisted Mr Brown knew nothing about the arrangement with Mr Abrahams.
The money was used to pay off debts run up during the contest. But Ms Harman appeared to implicate Mr Brown in the affair by revealing his former leadership campaign manager, Chris Leslie, had suggested Janet Kidd as a possible donor.
When asked whether the acceptance of the donation had "dropped Gordon Brown in it", Ms Harman replied: "No absolutely not. Asked earlier if she had "dropped Gordon Brown in it," she replied: "No absolutely not.
"I strongly maintain I have complied with the letter and spirit of the law and I think Gordon Brown has done the same.""I strongly maintain I have complied with the letter and spirit of the law and I think Gordon Brown has done the same."
Cheque destroyed And No 10 has sought to play down reports of a Cabinet rift over the donations.
Before contacting the Harman team, Mrs Kidd had attempted to give £5,000 to Mr Brown's campaign to become Labour leader. 'Mind-blowing'
But former Labour MP Chris Leslie, who was Mr Brown's campaign co-ordinator, tore the cheque up because no-one on the staff knew who Mrs Kidd was. The prime minister's official spokeswoman said: "The prime minister is fully focused on the business of government and has made clear he is keen that all the issues regarding party political donations are investigated thoroughly."
If Gordon Brown had had even a sniff that this was going on, he would have stopped it immediately, as would have I Jack Straw,Justice secretary f Gordon Brown had had even a sniff that this was going on, he would have stopped it immediately, as would have I Jack Straw, Justice Secretary
After the leadership and deputy leadership were settled, Mr Leslie was approached by a member of Ms Harman's team who asked if he knew of anyone who might be prepared to make a donation to her campaign fund. Justice Secretary Jack Straw has insisted "99.9%" of people in the Labour Party - including both Mr Brown and himself - knew nothing about the secret donations.
"I passed them the details of Mrs Kidd as someone whose offer of a donation we had not taken up," Mr Leslie said. He told BBC Radio 4's Today programme the situation was "mind-blowing".
He stressed that neither Mr Brown nor his campaign manager, Jack Straw, had known anything about the contacts with Mr Abrahams or Mrs Kidd's attempted donation. "Gordon Brown had absolutely no knowledge of any connection - inappropriate connection - between Mr Abrahams and Mrs Kidd. Neither did I.
Mr Straw told BBC Radio 4's Today programme: "Gordon Brown had absolutely no knowledge of any connection - inappropriate connection - between Mr Abrahams and Mrs Kidd. Neither did I.
"Neither, to the best of my knowledge - although I accept this is ultimately a matter for these inquiries - did any member of the immediate campaign team involved or the other campaigns.""Neither, to the best of my knowledge - although I accept this is ultimately a matter for these inquiries - did any member of the immediate campaign team involved or the other campaigns."
He added: "If Gordon Brown had had even a sniff that this was going on, he would have stopped it immediately, as would have I."
'Unprompted' cheque
Ms Harman's campaign team accepted £5,000 from Mrs Kidd in July - the month after she won the deputy leadership contest.
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The BBC has learned this money was used to pay off debts accrued during campaigning.
Mr Leslie said Mrs Kidd had been suggested as a possible donor by Mr Abrahams.
But when she sent an "unprompted" cheque for £5,000 Mr Leslie destroyed because the campaign team did not know who she was.
He did however suggest Mrs Kidd as a possible donor when Ms Harman's campaign team asked him for help.
"I passed them the details of Mrs Kidd as someone whose offer of a donation we had not taken up," Mr Leslie said.
Cheque destroyed
In law, details of any donor making gifts through a third party must be registered and reported to the Electoral Commission. The commission has asked the Metropolitan Police to investigate.
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 Chris Leslie: Full statementThe 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 Chris Leslie: Full statement
Mr Straw said: "If Gordon Brown had had even a sniff that this was going on, he would have stopped it immediately, as would have I."
He added that "for a long time this was an unknown unknown. The moment it became a known known, we got on to it."
Mr Straw also said "99.9%" of people in the Labour Party had not been involved, adding: "I can't tell you how irritated the rest of us are about this."
He added: "I think the culture has changed but not enough. There are going to be, in every system, some errors made."
One of Ms Harman's rival contenders, Hilary Benn, turned down £5,000 from Mrs Kidd, because he had been told it was actually from Mr Abrahams. He later accepted it under Mr Abrahams' name.One of Ms Harman's rival contenders, Hilary Benn, turned down £5,000 from Mrs Kidd, because he had been told it was actually from Mr Abrahams. He later accepted it under Mr Abrahams' name.
Mr Abrahams has said he did not know he was breaking any rules when he made the donations by proxy, claiming that he kept them secret to avoid publicity.Mr Abrahams has said he did not know he was breaking any rules when he made the donations by proxy, claiming that he kept them secret to avoid publicity.
Labour's general secretary Peter Watt has already resigned, saying he knew about Mr Abrahams' funding arrangement, but did not think they had broken the rules.Labour's general secretary Peter Watt has already resigned, saying he knew about Mr Abrahams' funding arrangement, but did not think they had broken the rules.
Labour's chief fundraiser, Jon Mendelsohn, has said Mr Watt told him about the situation last month but 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 the situation last month but had been unhappy about it and had contacted Mr Abrahams with the intention of putting his donations on a proper footing.
The Metropolitan Police recently completed the 19-month, £1.4m "cash-for-honours" investigation into party funding.The Metropolitan Police recently completed the 19-month, £1.4m "cash-for-honours" investigation into party funding.
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.
In law, details of any donor making gifts through a third party must be registered and reported to the Electoral Commission.
The commission has asked the Metropolitan Police to investigate.