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Labour donations handling 'inept' Labour donations handling 'inept'
(about 1 hour later)
Labour's failure to check donations made by a businessman through two colleagues was "inept" and "daft", a former party treasurer has said.Labour's failure to check donations made by a businessman through two colleagues was "inept" and "daft", a former party treasurer has said.
Property developer David Abrahams gave more than £400,000 through associates, claiming he wanted to avoid publicity.Property developer David Abrahams gave more than £400,000 through associates, claiming he wanted to avoid publicity.
But Lady Prosser said party officials normally ran a "due-diligence test" to ensure people were "bona fide" and money received was "legitimate".But Lady Prosser said party officials normally ran a "due-diligence test" to ensure people were "bona fide" and money received was "legitimate".
Labour is investigating the donations, which may have breached electoral law.Labour is investigating the donations, which may have breached electoral law.
The Electoral Commission has also asked the party to explain.The Electoral Commission has also asked the party to explain.
'Stumbled''Stumbled'
Lady Prosser told BBC Radio 4's The World at One: "It's completely inept when there's been already questions raised in the minds of the public and others about ways in which monies are handled.Lady Prosser told BBC Radio 4's The World at One: "It's completely inept when there's been already questions raised in the minds of the public and others about ways in which monies are handled.
"It seems to me to allow this to happen was completely daft.""It seems to me to allow this to happen was completely daft."
Lady Prosser also said: "My understanding is, ordinarily, when significant sums of money are being given, the officials at the party do a sort of due-diligence test to make sure that these people are bona fide; obviously that they're registered as electors; and that they've got the money to pay and that the money is legitimate money."Lady Prosser also said: "My understanding is, ordinarily, when significant sums of money are being given, the officials at the party do a sort of due-diligence test to make sure that these people are bona fide; obviously that they're registered as electors; and that they've got the money to pay and that the money is legitimate money."
Justice Secretary Jack Straw has said he was concerned about the arrangement, which was "plainly not transparent".Justice Secretary Jack Straw has said he was concerned about the arrangement, which was "plainly not transparent".
This is all extremely mysterious Chris GraylingConservativesThis is all extremely mysterious Chris GraylingConservatives
Sir Alistair Graham, chairman of the Committee on Standards in Public Life, said: "Gordon Brown put as a central theme of his government restoring trust in politics.
"Well, he's had a fairly disastrous period where trust in government as a whole has dropped dramatically.
"So I think he needs to recognise funding political parties is probably one of those areas where he needs to develop a consensus among political parties to see how that trust can be restored."
Labour confirmed general secretary Peter Watt would examine its donations to ensure the party was "beyond reproach".Labour confirmed general secretary Peter Watt would examine its donations to ensure the party was "beyond reproach".
Under electoral law, people making donations on behalf of others must give full details of the person providing the money.Under electoral law, people making donations on behalf of others must give full details of the person providing the money.
Mr Abrahams, who gave the money through Janet Kidd and Ray Ruddick, told the BBC he would declare the donation if required to.Mr Abrahams, who gave the money through Janet Kidd and Ray Ruddick, told the BBC he would declare the donation if required to.
According to Electoral Commission records, Mr Ruddick, a builder, who drives a Ford Transit van and lives in a former council house in Newcastle, is Labour's third biggest donor.According to Electoral Commission records, Mr Ruddick, a builder, who drives a Ford Transit van and lives in a former council house in Newcastle, is Labour's third biggest donor.
'Can't stand Labour''Can't stand Labour'
When he was contacted by the Mail on Sunday newspaper he initially said he knew nothing about the donations - apart from a payment of £80,000 made in July.When he was contacted by the Mail on Sunday newspaper he initially said he knew nothing about the donations - apart from a payment of £80,000 made in July.
He told the paper's reporter: "I can't stand Labour. I can't stand any politicians."He told the paper's reporter: "I can't stand Labour. I can't stand any politicians."
Mr Abrahams told BBC News he had funded the donations by his secretary Mrs Kidd and his "friend and colleague" Mr Ruddick.Mr Abrahams told BBC News he had funded the donations by his secretary Mrs Kidd and his "friend and colleague" Mr Ruddick.
Mr Abrahams said: "I'm a member of the Labour Party and have been for nearly 40 years, since I was 15.Mr Abrahams said: "I'm a member of the Labour Party and have been for nearly 40 years, since I was 15.
"I have always been fortunate enough to be able to make donations to worthwhile causes including the Labour Party.""I have always been fortunate enough to be able to make donations to worthwhile causes including the Labour Party."
'Friends''Friends'
He said he had "gifted funds to my friends and colleagues" so they could make donations on his behalf.He said he had "gifted funds to my friends and colleagues" so they could make donations on his behalf.
He said he had not donated the money under his own name because he was "a very private person".He said he had not donated the money under his own name because he was "a very private person".
According to the Electoral Commission, Mr Ruddick has donated £196,850 and Mrs Kidd £185,000 since 2003.According to the Electoral Commission, Mr Ruddick has donated £196,850 and Mrs Kidd £185,000 since 2003.
They are listed as having given the party £222,000 between them since Gordon Brown became leader, making them Mr Brown's third biggest donors after Lord Sainsbury and businessman Mahmoud Khayami.They are listed as having given the party £222,000 between them since Gordon Brown became leader, making them Mr Brown's third biggest donors after Lord Sainsbury and businessman Mahmoud Khayami.
Michael Kidd, Mrs Kidd's husband, told BBC Radio Five Live his wife had been given the money by Mr Abrahams "with the clear instruction to donate it to the Labour Party".Michael Kidd, Mrs Kidd's husband, told BBC Radio Five Live his wife had been given the money by Mr Abrahams "with the clear instruction to donate it to the Labour Party".
"It was never a gift. She did it because she works for him part-time and she saw it as part of her job. She was given no money to do this," he added."It was never a gift. She did it because she works for him part-time and she saw it as part of her job. She was given no money to do this," he added.
Conservative frontbencher Chris Grayling said: "This is all extremely mysterious. Gordon Brown needs to come clean quickly and explain what has been going on."Conservative frontbencher Chris Grayling said: "This is all extremely mysterious. Gordon Brown needs to come clean quickly and explain what has been going on."
Liberal Democrat home affairs spokesman Nick Clegg said: "I think it is precisely that lack of transparency that does so much damage not only to Labour - which it should - but to all politicians and all political parties."Liberal Democrat home affairs spokesman Nick Clegg said: "I think it is precisely that lack of transparency that does so much damage not only to Labour - which it should - but to all politicians and all political parties."