Donorgate police 'to press criminal charges'

baalhadadThu 27/12/07 02:17

http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/12/27/nloans127.xml

From The Daily Telegraph, 27 December 2007

The scandal over the Labour Party's £670,000 illegal donations will return to haunt Gordon Brown in the New Year as criminal charges may be imminent, according to an authoritative Whitehall source.

The Daily Telegraph can disclose that those leading the investigation into the so-called "donorgate" affair will complete their inquiries as early as the end of next month.

The source has said that Peter Watt, who resigned as Labour's general secretary, may be facing criminal charges over his role in the worst fundraising controversy since Labour took power in 1997.

The development will overshadow attempts by Mr Brown to regain the political initiative in the New Year after a disastrous last quarter of 2007.

The Prime Minister is spending Christmas in his constituency drawing up plans to try to rebuild his own personal reputation and to reverse Labour's slump in the opinion polls, which has seen the Tories rise to their strongest position in 15 years.

To avoid accusations of a witch hunt, any suspect is unlikely to be arrested, but will be "invited" to attend a police station to be interviewed under caution.

The police are conducting a far more low-profile inquiry than that conducted into the cash-for-honours affair, which saw senior Downing Street aides arrested and dawn raids carried out on their homes.

In contrast to that investigation, which lasted 15 months and resulted in no one being charged, the police will hand over a file to the Crown Prosecution Service within weeks.

Last month, Labour admitted that it had secretly received more than £670,000 from David Abrahams, a property developer from Newcastle upon Tyne, which was paid to the party by at least four conduits in breach of party funding legislation introduced by the Labour government.

Evidence and legal advice already collected by the authorities suggest that only Mr Watt and not Mr Abrahams or his associates is likely to face criminal charges for the method in which the donations were made.

Mr Abrahams is understood to have set up a relatively sophisticated scheme of legal "deeds of covenant" to give money to his associates that was then handed on to Labour.

Paperwork passed to police by the Labour Party is thought to be of interest to the tax authorities, although there is no suggestion that Mr Abrahams has illegally evaded tax.

Mr Watt was forced to resign as the party's general secretary and Mr Brown condemned Labour officials for accepting the money.

Mr Abrahams said that the arrangement had been drawn up in conjunction with Labour Party officials.

The Electoral Commission, which regulates party fundraising, called in the Metropolitan Police earlier this month.


However, the source added that failings in the drafting of electoral laws would make a prosecution problematic despite the matter being described as "illegal" by the Prime Minister.

It is understood that only the person directly responsible for signing off the Labour Party's donations with the Electoral Commission can be held legally accountable for any misleading statements.

The prosecuting authorities are very unsure as to whether someone who was, or claims to be, unaware that what they were doing was illegal can be successfully prosecuted.

"The CPS will have to be able to establish there is a strong public interest in pushing ahead with a prosecution," said the source.

However, Mr Watt is still expected to be charged for his role in the scandal.

He signed off the forms sent to the Electoral Commission naming Janet Kidd and Ray Ruddick as the donors to the party. However, the money was actually from Mr Abrahams.

Mr Abrahams was unavailable for comment, but has strenuously denied any wrongdoing.

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Well it is the Telegraph I suppose, so perhaps the vague language the article is written is suggestive that there is actually no story here.

However, it makes for a fun what if scenario. Would criminal charges being pressed be particularly damaging for Brown? Or would he be able to brush it off? Are people simply bored with the Donorgate scandal?