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Funding: Brown govt 'in crisis'
27/11/2007 14:03 - (SA)
London - Britain's Prime Minister Gordon Brown faced searching questions on Tuesday over how much he knew about "secret" donations to his governing Labour Party, in the latest crisis to hit his government.
Labour's general-secretary Peter Watt resigned on Monday night after it emerged that a property developer donated £600 000 to the party through three friends in breach of funding rules.
The case has revived debate about the transparency of party political donations after a similar row engulfed Brown's predecessor Tony Blair and saw two of his closest aides arrested as part of a police corruption investigation.
It is a fresh blow to Brown, who came to office in June vowing greater openness in government.
His poll ratings have been severely dented in recent weeks after the government's loss of sensitive personal data for 25 million people and concern over the use of taxpayers' money to shore up troubled bank Northern Rock.
A ComRes survey for The Independent newspaper on Tuesday heaped more woe on the embattled prime minister, showing the main opposition Conservative Party 13 points ahead of Labour.
Brown 'unaware' of donations
That is their best rating since 1988 when Margaret Thatcher was prime minister.
The funding row was guaranteed to dominate Brown's monthly news conference later on Tuesday as the revelations filled the day's newspapers and airwaves and Labour sought to prevent the situation spiralling out of control.
Watt resigned after admitting he knew that wealthy, but secretive, businessman David Abrahams channelled a series of large cash donations to Labour through friends and colleagues to keep his name out of the spotlight.
Under British law, all donations over £5 000 have to be made public and parties must be aware of where the money came from. Third party donors also have to state the source of the original donation.
Brown's ally Jack Straw, the justice secretary, said Brown was unaware of the donations and would have acted swiftly had he known.
But the Tories, on the offensive and reviving their accusation of "sleaze" against Labour, are demanding to know when and how much Brown knew.
Tory finance spokesperson George Osborne said: "Everything Gordon Brown promised about his premiership - competence, honesty and change - has been blown away in the last few weeks.
"Gordon Brown's government is now officially in crisis."
The Tories are also demanding to know whether Harriet Harman, Labour's chairperson and a cabinet minister, was aware of the donations.
Newspapers piled further pressure on Brown on Tuesday, claiming that Abrahams was given planning permission for a business park in north-east England after donating the cash, despite being earlier refused the go-ahead.
At the time, Brown's trusted lieutenant Douglas Alexander was transport secretary and responsible for the Highways Agency, which initially objected to the scheme.
Abrahams, who said he regretted Watt's resignation, said: "Any suggestion that I have made donations in exchange for favours is false and malicious. I will not hesitate to issue proceedings to protect my reputation."
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