Labour calls for electoral commission inquiry - Irish Times

The Irish Times - Wednesday, March 28, 2012

MARK HENNESSY, London Editor

BRITISH PRIME minister David Cameron is desperately trying to stave off an official inquiry by the electoral commission into Conservative Party fundraising, after a top official was forced to resign for improperly offering access to him.

The battle between Conservatives and the Labour Party on the issue now centres on the electoral commission, after former Labour justice secretary Jack Straw wrote to it demanding an official inquiry.

If such an inquiry were to go ahead and have negative findings, it could have a devastating impact on Tory fortunes. Consequently, Number 10 is keen to do everything possible to ensure that one is not ordered. Last night, the electoral commission was keeping its counsel.

In his letter to the commission, Mr Straw said the Tory co-treasurer Peter Cruddas and former party staffer Sarah Southern had broken rules simply by listening to undercover reporters offering to funnel Middle Eastern money to the party.

In one of the clips released by the Sunday Times, Ms Southern said she had spoken to Conservative Central Office, which said the money would have to come via individuals listed on the British electoral roll.

Under the 2000 Political Parties, Elections and Referendums Act, donations can only come from voters, or from companies registered in the UK, and funds that might be coming from a third-party must also be declared.

"These reports raise serious questions as to how the Conservative Party is soliciting donations, potentially in contravention of [the legislation]," said Mr Straw, who asked the question: did Mr Cruddas or Ms Southern commit a criminal offence by soliciting such funds?

Laws that he had introduced in 2009 "make sure you cannot use front organisations to disguise the original source of the donation", Mr Straw said, adding that there was "a prima facie" case for the electoral commission to investigate and potentially a need for a criminal investigation.

Mr Cameron is hoping that his decision to release details on Monday of the major Conservative donors who have enjoyed his hospitality at Number 10 and Chequers has taken the heat out of the crisis.

Labour leader Ed Miliband promised to detail his meetings with major trade union leaders as he continued to push for an independent inquiry into allegations that Conservative supporters were offered access to the prime minister in return for cash.

"I'm very happy to publish and to be very transparent about what we do and who we meet," said Mr Miliband, who is being urged by his brother David to accept changes to fundraising rules that would reduce the contributions from the unions to Labour funds.

He insisted that Labour "engage constructively" in the upcoming talks with the Conservatives and the Liberal Democrats, though few around Westminster see much possibility of the parties being able to, or wanting to, come to an agreement.

The lobbyist who tipped off the Sunday Times about Mr Cruddas' and Ms Southern's behaviour has made a complaint to police. However, they were badly scalded in the cash-for-honours investigation during Labour's years in power and will be reluctant to act, unless pushed.

One barrister, James Vine, has demanded action from the director of public prosecutions, Keir Starmer, saying there is clear evidence justifying a full investigation under the Bribery Act – legislation that has been toughened since the Conservatives came to power.

A senior Conservative fund-raiser has "given a clear intimation" to a potential donor that a large donation would grant access to the prime minister, the chancellor of the exchequer, and influence Number 10 for an "awesome" business advantage, not enjoyed by others, said Mr Vine.