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Falkirk vote-rigging row woman Karie Murphy quits Unite cleared over Labour vote-rigging row
(35 minutes later)
The woman at the centre of allegations of vote-rigging by the Unite union in the selection of a Labour candidate for the Falkirk constituency has withdrawn. Unite has been cleared of trying to rig the selection of a Labour candidate in Falkirk, claims which led to a major row between the union and Ed Miliband.
Karie Murphy said she had pulled out of the selection process in the interests of "reconciliation and unity". Labour has decided no organisation or individual broke party rules after evidence of wrongdoing was withdrawn.
Ms Murphy, who was the office manager of Labour MP Tom Watson, was the union's preferred candidate. Two union officials at the centre of the row have been reinstated.
Unite has been accused of hijacking the process to select a candidate to replace outgoing MP Eric Joyce. Mr Miliband proposed wide-ranging changes to Labour's links with the unions in the wake of the row, due to be debated at next week's TUC Congress.
Labour has been investigating allegations that the Unite union - its biggest financial backer - tried to sign up members without their knowledge in the constituency to ensure their favoured candidate, Karie Murphy, was selected.
Announcing the findings of the inquiry, the party said: "Since Labour began its internal process key evidence has been withdrawn and further evidence provided by individuals concerned.
"No organisation or individual has been found to have breached the rules as they stood at the time."
The party said that neither Ms Murphy nor Stevie Deans, a fellow Unite member who was chair of the local Labour Party, had been found guilty of any wrongdoing and both had been reinstated.
Labour defended the investigation saying it had "acted quickly to protect the interests of the party".
Despite her reinstatement, Ms Murphy has decided to withdraw from the contest to be Labour's candidate in Falkirk. She said she had done so in the interests of "reconciliation and unity".
'Ordinary values'
In a statement, she said she had been "shocked and saddened" by what had happened.
"Throughout the controversy surrounding what we consider to be the revitalisation work in Falkirk both Stevie Deans and myself have maintained that we have done nothing wrong, and that our union Unite has done nothing wrong," she said.
"The media attention on Falkirk has centred on candidate selection and, whilst having MPs who represent the values of ordinary working people is very important, our objective of getting ordinary members actively involved in a vibrant local party has been forgotten in media coverage."
Labour's ruling National Executive Committee will draw up a list of potential candidates from which local party members will choose a prospective MP to represent the party in the 2015 election.
Police were asked to investigate the matter but decided they were "insufficient grounds" to justify further inquiries.
The Falkirk row prompted Mr Miliband to call for an overhaul of the process by which union members affiliate to Labour - a move which would have cost the party millions in funding but which he says could revitalise the party and boost membership.
The GMB union announced earlier this week that it would cut affiliation fees to Labour by nearly £1m.
The party, which has been accused by the Conservatives of having policy dictated by the unions, is also carrying out a review of membership rules to ensure they are not open to abuse.