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Labour boss quits over donations Labour boss quits over donations
(20 minutes later)
Labour general secretary Peter Watt has resigned following the revelation that a property developer made donations to the party via two colleagues.Labour general secretary Peter Watt has resigned following the revelation that a property developer made donations to the party via two colleagues.
David Abrahams gave more than £400,000 through associates, claiming he wanted to avoid publicity. David Abrahams, who gave more than £400,000 through associates, said Mr Watt's resignation was "sad".
Mr Watt told a meeting of officers of Labour's National Executive Committee he had known about the arrangement.Mr Watt told a meeting of officers of Labour's National Executive Committee he had known about the arrangement.
Under the law, people making donations on behalf of others must give details of the person providing the money. Under the law, those making donations on behalf of others must give details of who is providing the money.
'Highest standards''Highest standards'
In a statement, Mr Watt said he had always "prided myself on having complete integrity" but added that, as general secretary, he was legally responsible for the reporting obligations for the party.In a statement, Mr Watt said he had always "prided myself on having complete integrity" but added that, as general secretary, he was legally responsible for the reporting obligations for the party.
This is a government which appears to be in a state of chaos, unable to get on with the job of governing Britain Chris GraylingConservativesThis is a government which appears to be in a state of chaos, unable to get on with the job of governing Britain Chris GraylingConservatives
He added: "I was aware of arrangements whereby David Abrahams gave gifts to business associates and a solicitor who were permissible donors and who in turn passed them on to the Labour Party and I believed at the time my reporting obligations had been appropriately complied with.He added: "I was aware of arrangements whereby David Abrahams gave gifts to business associates and a solicitor who were permissible donors and who in turn passed them on to the Labour Party and I believed at the time my reporting obligations had been appropriately complied with.
"As a result of press coverage over the weekend, I sought legal advice on behalf of the Labour Party. I was advised that, unbeknown to me, there were additional reporting requirements.""As a result of press coverage over the weekend, I sought legal advice on behalf of the Labour Party. I was advised that, unbeknown to me, there were additional reporting requirements."
Mr Watt said he had informed the National Executive Committee straight away.Mr Watt said he had informed the National Executive Committee straight away.
He added: "Consistent with my own and the party's commitment to the highest standards in public life, it is with great sadness I have decided to resign my position as general secretary with immediate effect."He added: "Consistent with my own and the party's commitment to the highest standards in public life, it is with great sadness I have decided to resign my position as general secretary with immediate effect."
'Inept''Inept'
Mr Abrahams, who gave the money through colleagues Janet Kidd and Ray Ruddick, told the BBC he would declare the donation if required to.Mr Abrahams, who gave the money through colleagues Janet Kidd and Ray Ruddick, told the BBC he would declare the donation if required to.
Labour is investigating the donations and the Electoral Commission has also asked the party to explain.Labour is investigating the donations and the Electoral Commission has also asked the party to explain.
Former Labour treasurer 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.Former Labour treasurer 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.
I have always been fortunate enough to be able to make donations to worthwhile causes including the Labour Party David AbrahamsI have always been fortunate enough to be able to make donations to worthwhile causes including the Labour Party David Abrahams
"It seems to me to allow this to happen was completely daft.""It seems to me to allow this to happen was completely daft."
Justice Secretary Jack Straw said he was concerned about the arrangement, which was "plainly not transparent". Mr Abrahams told the BBC that Mr Watt "didn't deserve to resign".
When he was contacted by the Mail on Sunday newspaper, Mr Ruddick initially said he knew nothing about the donations - apart from a payment of £80,000 made in July. He added: "He was an excellent and very efficient general secretary. If he wasn't aware of the law, he should have been given another chance.
The builder, who drives a Ford Transit van and lives in a former council house in Newcastle, told the newspaper: "I can't stand Labour. I can't stand any politicians." "The party should review his resignation. It's not the way forward for the Labour Party."
Mr Abrahams told BBC News he had funded the donations by his secretary Mrs Kidd and his "friend and colleague" Mr Ruddick.
'Very private'
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."
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".
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.
Conservative frontbencher Chris Grayling said: "I think it's a question to put to Gordon Brown - did he have any idea about these donations?Conservative frontbencher Chris Grayling said: "I think it's a question to put to Gordon Brown - did he have any idea about these donations?
"I wait with interest to hear what he has to say. But the broader issue is that day after day, week after week, we get announcements, get issues, get crises."I wait with interest to hear what he has to say. But the broader issue is that day after day, week after week, we get announcements, get issues, get crises.
"This is a government which appears to be in a state of chaos, unable to get on with the job of governing Britain.""This is a government which appears to be in a state of chaos, unable to get on with the job of governing Britain."
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."