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Hain under fire over think tank Hain under fire over think tank
(about 1 hour later)
Work and Pensions Secretary Peter Hain is under fresh pressure over a think tank used to channel money to his bid to become Labour's deputy leader.Work and Pensions Secretary Peter Hain is under fresh pressure over a think tank used to channel money to his bid to become Labour's deputy leader.
The BBC understands two men who gave money to the Progressive Policy Forum (PPF) were not told it would go towards supporting the unsuccessful campaign.The BBC understands two men who gave money to the Progressive Policy Forum (PPF) were not told it would go towards supporting the unsuccessful campaign.
But Mr Hain says all PPF donors were asked if funds could be transferred.But Mr Hain says all PPF donors were asked if funds could be transferred.
Energy Minister Malcolm Wicks said Mr Hain had "got himself into a very difficult position".Energy Minister Malcolm Wicks said Mr Hain had "got himself into a very difficult position".
He told BBC Radio 4 that Mr Hain, who is also Welsh secretary, was a man of "great integrity".He told BBC Radio 4 that Mr Hain, who is also Welsh secretary, was a man of "great integrity".
Mr Wicks said leadership candidates should not have to raise "tens and tens of thousands of pounds to run a campaign", but should be funded by the party instead.Mr Wicks said leadership candidates should not have to raise "tens and tens of thousands of pounds to run a campaign", but should be funded by the party instead.
'Nothing illegal''Nothing illegal'
Liberal Democrat leader Nick Clegg said it was "intensely embarrassing" for Mr Hain but warned against a rush to judgement while investigations were under way.Liberal Democrat leader Nick Clegg said it was "intensely embarrassing" for Mr Hain but warned against a rush to judgement while investigations were under way.
He told the BBC: "From what I've heard I can't really distinguish between what appears to be either utter incompetence in the way his campaign was run, or deliberate obfuscation.He told the BBC: "From what I've heard I can't really distinguish between what appears to be either utter incompetence in the way his campaign was run, or deliberate obfuscation.
"But equally we have the Electoral Commission now looking into it, and the Parliamentary authorities. I hope they will do their job quickly because I think we need answers quickly.""But equally we have the Electoral Commission now looking into it, and the Parliamentary authorities. I hope they will do their job quickly because I think we need answers quickly."
Mr Hain admitted on Thursday he had failed to declare 17 donations to his campaign totalling £103,000.Mr Hain admitted on Thursday he had failed to declare 17 donations to his campaign totalling £103,000.
He has blamed the mistake on overwork, but the Electoral Commission and the Parliamentary Standards Commissioner are now investigating.He has blamed the mistake on overwork, but the Electoral Commission and the Parliamentary Standards Commissioner are now investigating.
If it was a crime to report things late, beyond deadlines, then millions of taxpayers every year would probably be in trouble too Dan Norris MPPeter Hain's former parliamentary private secretaryIf it was a crime to report things late, beyond deadlines, then millions of taxpayers every year would probably be in trouble too Dan Norris MPPeter Hain's former parliamentary private secretary
Their focus is likely to be on the PPF and how donations to it totalling more than £35,000 came to be channelled to Mr Hain. Their focus is likely to be on the PPF and how donations to it totalling more than £50,000 came to be channelled to Mr Hain.
A source has told the BBC that one of the donors, diamond dealer Willie Nagel, was unaware of the transfer, but "was not surprised" and "not unhappy" when he learned of it.A source has told the BBC that one of the donors, diamond dealer Willie Nagel, was unaware of the transfer, but "was not surprised" and "not unhappy" when he learned of it.
'Not tenable''Not tenable'
Labour MP Dan Norris, who was parliamentary private secretary to Mr Hain during his deputy leadership bid, said the minister had "not done anything illegal".Labour MP Dan Norris, who was parliamentary private secretary to Mr Hain during his deputy leadership bid, said the minister had "not done anything illegal".
"And if it was a crime to report things late, beyond deadlines, then millions of taxpayers every year would probably be in trouble too," he said."And if it was a crime to report things late, beyond deadlines, then millions of taxpayers every year would probably be in trouble too," he said.
Six of the donations to Mr Hain were made by individuals through the PPF, a virtually unknown think tank which has a registered address at a London solicitor's offices.Six of the donations to Mr Hain were made by individuals through the PPF, a virtually unknown think tank which has a registered address at a London solicitor's offices.
It was set up three months after the launch of Mr Hain's campaign, and counts John Underwood, who was closely involved in financing the Hain campaign, as a trustee.It was set up three months after the launch of Mr Hain's campaign, and counts John Underwood, who was closely involved in financing the Hain campaign, as a trustee.
In a statement, Mr Hain said there was nothing illegal about using a third party to donate money, provided the original source of the donation was registered.In a statement, Mr Hain said there was nothing illegal about using a third party to donate money, provided the original source of the donation was registered.
But Elfyn Llwyd, Plaid Cymru's leader in Parliament, told BBC Wales Mr Hain's position was no longer tenable.But Elfyn Llwyd, Plaid Cymru's leader in Parliament, told BBC Wales Mr Hain's position was no longer tenable.
"The buck stops with him according to the law. He can't just blame his assistants," Mr Llwyd said."The buck stops with him according to the law. He can't just blame his assistants," Mr Llwyd said.
Gordon Brown, meanwhile, is standing by Mr Hain and the Conservatives say they are holding off from calling for his resignation until the standards commissioner produces his report.Gordon Brown, meanwhile, is standing by Mr Hain and the Conservatives say they are holding off from calling for his resignation until the standards commissioner produces his report.