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An MEP from the UK Independence party (UKIP) is under investigation for fraud after embezzling tens of thousands of pounds of taxpayers’ money by pretending to be someone else.
Bank documents show that Tom Wise channelled nearly £40,000 of public funds into his personal account after claiming it was for an assistant’s salary. He is now being investigated by a European antifraud watchdog, which has asked to interview him and others in connection with the case.
This is potentially the most serious crisis to hit UKIP, which has always held itself up as the party opposed to the European Union “gravy train”.
The development comes as the Electoral Commission announced it was launching a full inquiry into UKIP’s finances after its repeated failures to keep within the rules. EU rules state that MEPs can claim up to £125,000 a year for assistants’ wages but the money must be paid either directly to the employees or through a third-party “agent”. To avoid fraud, MEPs are not allowed to handle the money themselves.
Instead Wise, a former policeman, pretended that his own bank account was actually that of Lindsay Jenkins, his researcher.
From November 2004 until October 2005 he funnelled £39,100 of taxpayers’ money into his own account with the Cooperative Bank from which he paid Jenkins just £13,555, according to bank statements obtained by The Sunday Times. They show that the only money coming into the account was from the EU, ostensibly for Jenkins.
In another breach of the EU rules, some of the £13,555 paid to her was actually for work done on behalf of other party members, including the UKIP leader Nigel Farage who had agreed to fund the publication of a Eurosceptic book written by Jenkins.
During the same timespan, more than £19,000 of the money was steadily paid out from Wise’s account to other destinations, some of them apparently credit cards. One disbursement alone, made via a transfer to somebody other than Jenkins, was for £6,500.
Last night Wise, who describes himself as a bon viveur and wine-lover, refused to reveal what the money had been used for. When questioned by The Sunday Times on the ultimate destination of the cash, he went silent before putting down the telephone. He failed to respond to further messages.
Wise, 58, an MEP for Eastern England since 2004, also applied for other assistants’ salaries to be paid through his bank account before the period involving Jenkins.
Despite an internal UKIP inquiry into Wise’s behaviour, launched after the EU became aware of his scam, no action has been taken against him and the results of the investigation have been kept secret.
Three days after the EU was alerted, and to head off a scandal, Wise began repaying £25,530.
If Olaf, the antifraud watchdog, establishes fraud, the evidence will be passed to British and Belgian police for a possible prosecution.
Last week the Electoral Commission said it was taking legal action to recover more than £360,000 in donations to UKIP, which allegedly breach rules governing party funding. The demand, which threatens to make the party bankrupt, comes after this newspaper revealed that the commission is also looking at donations totalling £118,000 which were not put through any of UKIP’s main bank accounts.
An e-mail, sent last April by Andrew Smith, then the party’s treasurer, to various senior members, reveals the degree to which it intended to mislead the commission.
“We need to give the Electoral Commission every reason to believe we are serious about compliance, in order to provide the next party treasurer with a good story to tell when we next fail to meet the statutory requirements,” he wrote.
The commission said: “We are going to launch a full review of UKIP’s internal systems for dealing with their financial affairs and handling their statutory reporting requirements. We are taking it very seriously.”
UKIP systematically flouts the spirit of EU rules, which forbid party workers from being paid with taxpayers’ money.
The party has been paying its regional organisers by designating them “advisers” and “assistants” to its 10 MEPs, thereby allowing them to draw salaries of up to £40,000 a year from the EU, while they do their actual jobs “in their spare time”.
Further details are set to be exposed because Denis Brookes, one of the party’s former officials, issued industrial tribunal proceedings against Mike Nat-trass, the party’s MEP for the West Midlands region.
It is understood that Brookes has stated in his claim for unfair dismissal that he was being paid to do one job while actually employed to do another one entirely, so that the party could secure EU funding for him.
“Some people in the party have a cavalier and even contemptuous attitude to taking what is actually taxpayers’ money and using it for their own ends,” a UKIP source said.
Within months of his election Wise was attempting to channel public funds into his own bank account. In October 2004 he applied to the EU payments office for Jenkins, a freelance researcher as well as a candidate at the time for selection to fight a parliamentary seat for the Conservatives, to be paid £36,000 a year.
He had, however, no intention of paying her such an amount. His actual agreement with her was that she would be given monthly “retainer” payments of £500 in return for her advice and statistical research, with any additional work being paid for on top.
Wise’s method was simple. He supplied the EU payments office with a contract, obtained by The Sunday Times, which included Jenkins’s name and details and stipulated that she apparently wanted her money to be paid into her account, entitled “Stags”.
In fact, this account, the full name of which was “T Wise trading as Stags”, was a business account run by the MEP himself.
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Unfortunately, you can't believe everything you read, even in the Times. The truth is that UKIP is becoming very popular with disillusioned Conservatives . Of course the Conservatives and their Press are getting twitchy.
Andy Goody, Yeovil, Somerset., UK
I am a former member but left when I first got the whiff that something was not quite right turned into a rotting stench.
It is a crying shame that those elected to play by the rules and fight EU corruption and fraud have turned out to be nothing more than massively expensive parasites and spongers living the high life off the back of the British taxpayer.
Nigel Farage and his cabal of cronies are more interested in feathering their own nests than fighting to get Britain out of the EU.
Bill, Torquay, Devon
Frankly UKIP have always been idiotic, inefficient, and amazingly disputatious. Sleaze was discovered immediately after the 2004 Euro Election, when one of their MEPs had to leave the party due to benefit fraud investigation. These latest reports show that may have been the tip of a very unpleasant iceberg. How is it they have "lost" their founder, previous leaders, and people such as Kilroy Silk, none of whom have a civil word to say about them.
Anyone who takes them seriously should be carefully questioned and sent for a professional check-up.
Monnet, Devon,
Nigel Farage, the leader of UKIP, has always had a reputation of being a wide-boy. His philosophy of "If it's legal - do it" has now it seems permeated through to the Party and other MEPs.
This affair is one of the accidents that has been waiting to happen.
The Electoral Commission need to investigate and regulate the lack financial governance in UKIP before it is too late to save the Party.
Germaine, Birmingham, UK
The real question is why can MEPs spend £125,000 a year of tax payer's money for assistants wages?
Last time I wrote to an MEP it took 3 letters to get a reply, and then it was a form letter that thanked me for my interest in the issue without even saying what the issue was.
So lets bring MEPs' salary and expenses package down, to reflect the value of the service we are getting from them.
Mr CWR Phillips, Huntingdon, England
I voted UKIP last Euro elections. Never again. These allegations, and it's leader Nigel Farage being carried out drunk of a Brussles bar is the last straw. They are as sleazy as NuLabour and don't deserve the support of patriotic Britons. I will now support the BNP, there is really no alternative.
jim burns, altrincham, cheshire
So it seems that the EU is coming to the aid of the conservative party. That does not surprise me.
But if we cannot vote for a party to bring change it may be time to pick up the Kalashnikov.
Steve Byrne, christchurch,
We have recently seen some of our own MP's applications for their expense accounts, so what is the difference? UKIP's present problems look like a genuine mistake, yet the proceedings against them may bring more people to support them. Why? because I am beginning to believe that all are in politics "for what they can get out of it". If it means destroying your own country, so be it-if it means giving your country away, losing its independence, sovereignty, authority, the total loss of the ability of this country to speak for itself internationally again, tough! or letting the EU 'rule the waves' instead of Britannia, so-be-it, for after-all, they have only one life to live so these MP's and MEP's might as well live it to the full eh? What rubbish to speak of 'honesty', 'integrity, 'truth' when speaking of politicians. Ah yes, you see, you all get tarred with the same brush in the end whether true or not.
Anne , West Midlands, England
Tom Wise was cleared of any wrong-doing by an E.U. investigation last year. This fact does not appear in the report.
Eric Wilson, Hartlepool, U.K.
All well-meaning patriots who are members of the allegedly corrupt UKIP should think about joining the only real patriotic party in this country, The British National Party. You will be welcome to join us.
Donna, West Sussex
Donna Bailey, West Sussex,
As far as I,as a member of UKIP are concerned, this is proof we are frightening to many big wigs, we are gaining members faster than any other party, and we are taking more Tories out of the running, so the establishment has in it's fright taken us down the dirty tricks route. Politics is a dirty game ,even dirtier if you upset the present governing body and they don't come dirtier than Blair and cohorts.
Leonard Baynes, March, Cambridgeshire.
As a longstanding UKIP member and a strong supporter of leaving the EU I am appalled by the string of "offences" now coming to light.
I do believe that there is a concerted effort to wipe out the party by both the corrupt and undemocratic EU and also by the Tory and other parties. UKIP has been getting too much media coverage to ignore and is seen as dangerous, hence the exposure. There have been numerous similar examples of wrongdoings over the years in respect of the EU and the Tories but the effect has been minimal because of their relative size and power.
However if the allegations are true it does not excuse the apparent stupidity by senior members of the party who should have realised that they must be cleaner than clean and that the party must comply with all the rules.
You don't prod big beasts who can react with overwhelming force at the first opportunity unless you are sure that your defences are perfect.
John, Brighton,
You'll find that this is all part of a cunning plan by one, Baldrick MEP, who by jumping into one of the carriages of the Euro-gravy train, was able to demonstrate to the world at large how easy it is to steal food from the dining car without paying. It was an attempt at exposing the slack methods of accounting within the European Union and that UKIP is more than satisfied to see that things are now tightening up. I know this to be true as it was told to me by the tooth fairy.
Gerry19B, Belfast,
I discovered UKIP was dubious some years ago. They did not appear to be serious about pulling this country out of the EU.
As soon as someone came along who was prepared to campaign efficiently the leadership used dubious people to circulate and discredit people.
Simon, St Albans, UK
Can anyone really be surprised about the latest dodgy dealings within UKIP? This organisation is being used as a safety valve by the establishment in its attempt to prevent genuine anti-EU organisations gaining influence.
Glenn, Leeds, West Riding of Yorkshire
Originally set up as a safety valve for disillusioned voters who may have voted BNP, this bunch are as bad as the LibLab=con. Who on earth can we trust?, it seems to me that despite all the media smears against the BNP orchestrated by the controlling parties, they are the only movement with any decency or values left today.
Daniel Levinson, Glasgow, Scotland
A former policeman now a politician, what else did you expect ????
Ray , Manchester , UK
Sounds as though William and his cronies in the larger parties, electoral commission and media are becoming desperate to kill off the UKIP.
Michael, UK,
This story, as well as the the other investigations to the cash for honours and other donations, shows why we need the regulations to exist and be enforced.
Neil Walton, Bicester, UK
Why should this news surprise anyone, all ukip have done is get there snouts into the same trough as the other parasites, aks the European parliament
ian callaghan, camelford, cornwall
Yes, wholly incorrect behavour if it proves to be true. So much of this is going on within the corridors of Europegistan, Why is it that all of a sudden UKIP get pulled up, and WALLA! Everybody else is so clean.
UKIP is (was) a looming danger to the other Politcal, and equally money grabbing (established) Parties. So lets find something on UKIP to shut them up.
UKIP are complete idiots for falling into the trap.
UKIP had it on a plate several years ago, but then the infighting, and some wrongdoing has ruined it. So many ordinary people are desperately searching for an alternative to the losers that are trying to run our lives now.
you have let us down.
Steven Saul, Manchester, England
Any breach of law must be investigated thoroughly and the perpetrators punished. However, I am still a little suspicious about how UKIP finds itself the whipping boy for a variety alleged misdemeanours at the present moment. I believe there are a number of very serious concerns about the whole set up in Europe that require closer examination, and which are being rigorously ignored by all and sundry. Any organisation whose auditors consistently refuse to sign its books off should be examining its own working practices a lot more closely.
Pete, Lincoln, UK
What? The corrupt EU investigating an EU MP? The EU has never having had its accounts signed off - even by its own internal auditors. We might as well ask Enron to investigate Robert Maxwell!
Steve, Ruislip, Middx
I was a member of UKIP for a couple of years, but gave up my membership when I concluded that UKIP MPs were much the same as all the others - in it for themselves.
Martin, Forfar, GB
How disengenuous and superficial ukip are turning out to be! Whether it's there own hoccus poccus accounts, which appear to be very shoddily maintained or whether it's their supposedly anti-EU position. It would appear that too many ukip personnel are more interested in providing the rest us with a false picture of the type of people they REALLY are.
In 2004 Euro elections I supported and voted ukip. But NEVER again, my vote will find another patriotic home!!!
Lawrence, London, England
As a former UKIP member I am disgusted to read this - coming as it does after the news that the organisation is under investigation by the Electoral Commission and that its leader had to be helped from a Brussels bar earlier this week! How any decent person can possibly support or vote for this dubious outfit is beyond me. No doubt UKIP leaders - those who are supposedly anti-EU - yet fill their pockets with EU Euros (legally or otherWISE) - will claim to be the victims of a conspiracy or suchlike claptrap!
William, North Wiltshire, UK