Labour donations: controversy deepens

Deputy Prime Minister Harriet Harman has said she will not resign over controversial Labour Party donations.

Janet Kidd donated £5,000 towards Ms Harman's deputy leadership campaign in July this year.

Ms Harman insists she accepted the donation in 'good faith' and did not know that the money originated from wealthy property developer David Abrahams.

The Deputy Prime Minister has now returned the money and says she will not resign over the matter.

And it has emerged that at least one of the contributors used to donate cash to the Labour Party had no idea it was happening.

David Abrahams is alleged to have transferred £25,000 in Janet Dunn's name in 2003. Ms Dunn's husband sometimes worked for the businessman, but she claims she knew nothing about it, and says they have always been Conservative supporters.

At his monthly press conference, the Prime Minister said his party would take advice on future safeguards on receiving donations after Mr Abrahams' £600,000 in "secret" donations came to light.

He said: "What has happened, where political donations have not been lawfully declared, is completely unacceptable, cannot be justified in any way, and this behaviour should never happen again in future."

Hilary Benn was also offered a cheque for £5,000 by Janet Kidd to help fund his campaign for the Labour deputy leadership earlier this year.

But the Environment Secretary's campaign team turned it down after discovering the money in fact originated from Mr Abrahams.

Mr Abrahams later offered a donation of the same sum in his own name, which was accepted.

Mr Benn's spokesman said the Cabinet Minister was not aware at any time that Mr Abrahams had been channelling large sums to the Labour Party via Mrs Kidd and two other associates.

On Monday the party's most senior official, General Secretary Peter Watt, quit after admitting he knew a wealthy donor had hidden his identity from regulators.

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