Alexander refuses to quit over donations

Scottish Labour leader Wendy Alexander has refused to resign despite facing a ban from Parliament for breaking the law over registering donations.

Holyrood's Standards Committee agreed by a one-vote majority that she should be excluded on the first Wednesday of the next session in September for failing to declare donations to her leadership campaign.

But Labour MSP David Whitton - speaking on behalf of the embattled leader - said the ruling was "politically motivated".

Asked if Ms Alexander's position was now untenable, he said: "That is complete nonsense."

Meanwhile, detectives investigating "disguised" donations to the Labour Party have handed their main file of evidence to the Crown Prosecution Service.

Police were called in by the Electoral Commission in November to look into whether £650,000 of donations given by property developer David Abrahams through associates to get round the law requiring political donors to be declared were in breach of party finance laws.

In a statement, Scotland Yard said: "The Metropolitan Police Service have today passed to the CPS the main file of evidence in relation to the investigation into potential breaches of the Political Parties, Elections and Referendums Act 2000 as a result of donations made through intermediaries.

"We have had regular consultation with the CPS since the inquiry began on November 30 2007 and it is now a matter for the CPS to consider the evidence, advise us on whether any further inquiries are necessary and whether any charges should be brought."

The investigation into "disguised" donations to the Labour Party, led by Met Temporary Commander Nigel Mawer, has not led to any arrests, unlike the previous "cash for honours" probe.

One of those at the centre of the controversy, Peter Watt, resigned as Labour's general secretary after it emerged that he knew Mr Abrahams had donated large sums of money to the party via friends and colleagues to keep his own name secret.

Mr Abrahams' solicitor said in April that there were "no grounds to proceed with a prosecution" against the Newcastle-based businessman after he gave police "full and open co-operation" in a voluntary interview at home.

Prime Minister Gordon Brown, who called the practice "unacceptable", has instructed party staff, MPs and peers to "co-operate fully in providing relevant information".

Former Cabinet minister Peter Hain quit as work and pensions secretary after detectives opened an investigation into more than £100,000 of unrelated undeclared donations to his campaign.

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