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Hain faces sleaze watchdog probe Hain faces sleaze watchdog probe
(about 1 hour later)
Peter Hain has been reported to the Parliamentary Standards Commissioner after he admitted failing to declare more than £100,000 in donations. Peter Hain has been reported to the Parliamentary Standards Commissioner for failing to declare £103,156 in gifts to his Labour deputy leader bid.
The watchdog will investigate whether the work and pensions secretary broke the rules on MPs' conduct over gifts to his Labour deputy leadership bid. The watchdog will investigate whether the work and pensions secretary broke the rules on MPs' conduct.
Mr Hain said the failure to declare donations was an innocent mistake. Downing Street said Gordon Brown had "full confidence" in Mr Hain, who has said his failure to declare the donations was an innocent mistake.
Plaid Cymru earlier called for Mr Hain's resignation following new revelations about the donations. But Plaid Cymru has called for Mr Hain, who is also Welsh secretary, to resign.
Standards Commissioner John Lyon will now prepare a report for the Parliamentary Standards Committee, which has the power to suspend Mr Hain from Parliament, if it decides he broke the rules.Standards Commissioner John Lyon will now prepare a report for the Parliamentary Standards Committee, which has the power to suspend Mr Hain from Parliament, if it decides he broke the rules.
It has emerged that a trustee of a think tank which channelled £25,000 into Mr Hain's bid, John Underwood, a former Labour communications director, was also closely involved in the financing of the campaign. This appears to be playing fast and lose with the law and cabinet ministers can't do that Elfyn LloydPlaid Cymru
The cash in the form of five donations was not declared to the Electoral Commission. In a statement on Thursday evening, Mr Hain admitted he had failed to declare £103,156 in donations to his failed campaign to become Labour's deputy leader to the Electoral Commission.
More than £25,000 in donations and a further loan of £25,000 were made by individuals through the Progressive Policy Forum, which does not have a website and whose registered address is a solicitor's office in London. The commission is carrying out its own investigation into whether electoral rules were broken.
Failed to declare Mr Hain said: "I had reasonably assumed that the arrangements in place for deputy leader campaign would be sufficient to ensure compliance with reporting requirements."
The money was then passed to Mr Hain's campaign but not declared to the Electoral Commission as donations. Think tank
In a statement on Thursday evening, Mr Hain admitted he had failed to declare more than £100,000 in donations to the Electoral Commission. He said it had become necessary to raise more cash after the deputy leadership contest finished in June because "unpaid invoices" emerged during the summer and autumn.
He said: "I had reasonably assumed that the arrangements in place for deputy leader campaign would be sufficient to ensure compliance with reporting requirements." But he learned on 29 November last year that these donations had not been declared within the required timescale, and "immediately" informed the Electoral Commission.
He said all of the individuals who had given money to the Progressive Policy Forum were asked if they were happy for the cash to be transferred to his campaign. The commission has since been kept in touch with progress on establishing which donations were not registered, added Mr Hain.
But the BBC has spoken one donor who said that he had not been consulted. In another development, it has emerged that a trustee of a think tank which channelled £25,000 into Mr Hain's deputy leadership bid - John Underwood, a former Labour communications director - was also closely involved in the financing of the campaign.
The cash, in the form of five donations, was not declared to the Electoral Commission.
More than £25,000 in donations and a further loan of £25,000 were made by individuals through the Progressive Policy Forum (PFF), which does not have a website and whose registered address is a solicitor's office in London.
The think tank was set up in December 2006, shortly after the launch of Mr Hain's deputy leadership campaign.
Donors 'not told'
The money was passed to the campaign but not declared to the Electoral Commission as donations.
Mr Hain said all of the individuals who had given money to the Progressive Policy Forum were asked if they were happy for the cash to be transferred to his campaign.
But the BBC has spoken to one donor who said that he had not been consulted.
Another donor, diamond dealer Willie Nagel, who donated £25,000 to the PFF and made three-month loan for the same amount, was not told the cash was given to Mr Hain's campaign, according to the Financial Times.
'Dynamite''Dynamite'
A spokeswoman for Mr Hain said he stood by everything he had said in his statement and would not be making any further comment.A spokeswoman for Mr Hain said he stood by everything he had said in his statement and would not be making any further comment.
Anyone who's worked with Peter Hain - which I've done over the years - would know that it could only be what he says it is - an honest innocent oversight Martin LintonLabour MP
Elfyn Llwyd, Plaid Cymru's leader in Parliament, told BBC Wales the latest revelations meant Mr Hain's position was no longer tenable.Elfyn Llwyd, Plaid Cymru's leader in Parliament, told BBC Wales the latest revelations meant Mr Hain's position was no longer tenable.
He said: "John Underwood was treasurer of the campaign - he must have known of donations.He said: "John Underwood was treasurer of the campaign - he must have known of donations.
"Yesterday I didn't say Mr Hain should consider his position, but today's revelations are dynamite."Yesterday I didn't say Mr Hain should consider his position, but today's revelations are dynamite.
"More than sorrow than in anger, I am forced to say his position is untenable."More than sorrow than in anger, I am forced to say his position is untenable.
"This appears to be playing fast and lose with the law and cabinet ministers can't do that.""This appears to be playing fast and lose with the law and cabinet ministers can't do that."
'Innocent oversight''Innocent oversight'
Shadow work and pensions secretary Chris Grayling said the revelations were "quite extraordinary".Shadow work and pensions secretary Chris Grayling said the revelations were "quite extraordinary".
"Failing to declare £100,000 of donations, which is the equivalent of the maximum spending limit on a Conservative leadership campaign, demonstrates breathtaking incompetence". "Failing to declare £100,000 of donations, which is the equivalent of the maximum spending limit on a Conservative leadership campaign, demonstrates breathtaking incompetence."
But the Labour MP for Battersea, Martin Linton, who was part of Mr Hain's campaign team, defended what he described as an "innocent oversight". But Labour MP for Battersea, Martin Linton, who was part of Mr Hain's campaign team, defended what he described as an "innocent oversight".
"Anyone who's worked with Peter Hain - which I've done over the years - would know that it could only be what he says it is - an honest innocent oversight - and he's very sorry for it." "Anyone who's worked with Peter Hain, which I've done over the years, would know that it could only be what he says it is - an honest innocent oversight - and he's very sorry for it."
Mr Hain finished last in the five-way race to replace John Prescott as Labour's deputy leadership, a contest won by Harriet Harman. Mr Hain came fifth in the six-way race to replace John Prescott as Labour's deputy leader, a contest won by Harriet Harman.
His campaign is thought to have spent heavily on courting trade union support and, in the final days of the contest, took out advertisements in national newspapers.His campaign is thought to have spent heavily on courting trade union support and, in the final days of the contest, took out advertisements in national newspapers.