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| Version 4 | Version 5 |
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| Lib Dems can keep £2.4m donation | Lib Dems can keep £2.4m donation |
| (about 1 hour later) | |
| The elections watchdog has ruled that the Liberal Democrats can keep £2.4m in donations which it had been suggested came from a fraudster. | The elections watchdog has ruled that the Liberal Democrats can keep £2.4m in donations which it had been suggested came from a fraudster. |
| Michael Brown was convicted of stealing £30m from clients - his trial heard he had channelled money through his firm, 5th Avenue Partners, to the Lib Dems. | Michael Brown was convicted of stealing £30m from clients - his trial heard he had channelled money through his firm, 5th Avenue Partners, to the Lib Dems. |
| But the Electoral Commission said there was no "reasonable basis" to conclude he had personally donated the money. | But the Electoral Commission said there was no "reasonable basis" to conclude he had personally donated the money. |
| The Lib Dems welcomed the ruling and said they had acted in "good faith". | The Lib Dems welcomed the ruling and said they had acted in "good faith". |
| The money was donated to the Lib Dems - the UK's third largest political party - by 5th Avenue Partners Ltd in 2005, ahead of its general election campaign. | The money was donated to the Lib Dems - the UK's third largest political party - by 5th Avenue Partners Ltd in 2005, ahead of its general election campaign. |
| Permissible donor | Permissible donor |
| In its findings the Electoral Commission said Brown - who was tried in his absence after skipping bail - was the "sole director" of 5th Avenue Partners Ltd. | In its findings the Electoral Commission said Brown - who was tried in his absence after skipping bail - was the "sole director" of 5th Avenue Partners Ltd. |
| But the watchdog said the company itself met the requirements under the Political Parties, Elections and Referendums Act 2000, to be a "permissible donor". | But the watchdog said the company itself met the requirements under the Political Parties, Elections and Referendums Act 2000, to be a "permissible donor". |
| It examined suggestions the true donor was actually Brown himself or the company's parent company -Switzerland-based 5th Avenue Partners GmbH - neither of which would have been allowed to make political donations under the rules. | It examined suggestions the true donor was actually Brown himself or the company's parent company -Switzerland-based 5th Avenue Partners GmbH - neither of which would have been allowed to make political donations under the rules. |
| At all times the party acted in good faith in releation to the receipt and the expenditure of these donations in the 2005 general election campaign Liberal Democrats class="" href="/2/hi/uk_news/politics/8371079.stm">Tory donor probe 'could drag on' | |
| The watchdog concluded: "There is no reasonable basis, on the facts of this case and taking into account the relevant law, to conclude the true donor was someone other than 5th Avenue Partners Limited." | The watchdog concluded: "There is no reasonable basis, on the facts of this case and taking into account the relevant law, to conclude the true donor was someone other than 5th Avenue Partners Limited." |
| Its report went on: "There is no credible evidence that any of the donations came from Michael Brown's own money rather than from one of his companies." | Its report went on: "There is no credible evidence that any of the donations came from Michael Brown's own money rather than from one of his companies." |
| The commission said "evidence indicates" that three of the donations "came from money transferred into 5th Avenue Partners Limited by investors". | The commission said "evidence indicates" that three of the donations "came from money transferred into 5th Avenue Partners Limited by investors". |
| In the case of the other two donations, it says the parent company was involved but there was "no evidence that the manner of transfer of funds was intended to conceal the true source of the donation". | In the case of the other two donations, it says the parent company was involved but there was "no evidence that the manner of transfer of funds was intended to conceal the true source of the donation". |
| 'Thorough investigation' | 'Thorough investigation' |
| It also says it was reasonable for the Lib Dems to "have regarded the donations as permissible". | It also says it was reasonable for the Lib Dems to "have regarded the donations as permissible". |
| Commission chair Jenny Watson said its job was to make sure the rules were followed. | Commission chair Jenny Watson said its job was to make sure the rules were followed. |
| She said the watchdog had conducted "a thorough investigation" and looked at a "substantial body of evidence" - including documents from the trial, from the City of London Police, accountants' analysis and evidence from the Lib Dems. | She said the watchdog had conducted "a thorough investigation" and looked at a "substantial body of evidence" - including documents from the trial, from the City of London Police, accountants' analysis and evidence from the Lib Dems. |
| This does not seem right Stuart WheelerUKIP donor | This does not seem right Stuart WheelerUKIP donor |
| "The Electoral Commission will be taking no further action in this case," she said. | "The Electoral Commission will be taking no further action in this case," she said. |
| In a statement, a spokesman for the Liberal Democrats said: "We welcome the Electoral Commission's ruling on this matter. | In a statement, a spokesman for the Liberal Democrats said: "We welcome the Electoral Commission's ruling on this matter. |
| "At all times the party acted in good faith in relation to the receipt and the expenditure of these donations in the 2005 general election campaign. All our donations and loans were properly declared to the Electoral Commission." | "At all times the party acted in good faith in relation to the receipt and the expenditure of these donations in the 2005 general election campaign. All our donations and loans were properly declared to the Electoral Commission." |
| In a separate ruling earlier this year, the Commission said that the UK Independence Party should forfeit £363, 697 in donations made by a man who was not registered to vote. | In a separate ruling earlier this year, the Commission said that the UK Independence Party should forfeit £363, 697 in donations made by a man who was not registered to vote. |
| A district judge had ruled it should only repay £14,481 after ruling the breach had been accidental - but the Commission appealed to the High Court and won. | A district judge had ruled it should only repay £14,481 after ruling the breach had been accidental - but the Commission appealed to the High Court and won. |
| UKIP leader Nigel Farage warned having to repay so much may put his party "out of business" and accused the watchdog of double standards. | UKIP leader Nigel Farage warned having to repay so much may put his party "out of business" and accused the watchdog of double standards. |
| On Friday, UKIP donor Stuart Wheeler said the commission's ruling on the Lib Dems "does not seem right" when it had pursued UKIP for donations which had been ruled impermissible due to "a purely technical slip which is acknowledged by the court to have been entirely inadvertent". | On Friday, UKIP donor Stuart Wheeler said the commission's ruling on the Lib Dems "does not seem right" when it had pursued UKIP for donations which had been ruled impermissible due to "a purely technical slip which is acknowledged by the court to have been entirely inadvertent". |