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Gordon Brown endured a savaging in the Commons about the Labour donations scandal today, as his chief fundraiser was forced to admit that he had known for two months that a millionaire property developer had illegally donated £600,000 to the party through middlemen.
Facing calls to resign, Jon Mendelsohn issued a statement saying that he had been unhappy when he found out about the arrangement with David Abrahams when he was appointed to his role as Labour director of election resources in September.
He said that he had checked with Peter Watt, the party general secretary, and was told that the procedure was above board and part of a "long-standing" arrangement. Mr Watt resigned over the scandal on Monday.
Mr Mendelsohn is the latest figure to become embroiled in the affair, in which it has been revealed that Mr Abrahams used at least four friends to transfer more than £600,000 to Labour while his own identity remained secret, breaking funding rules.
The latest disaster for Labour, after Northern Rock and the data loss debacle, prompted David Cameron to ask at a rough-house Prime Minister's Questions whether Mr Brown was up to the job of leading the country.
One donation made by an intermediary was accepted by Harriet Harman, who said that she did not know that the donor, Janet Kidd, was a proxy to Mr Abrahams. However, Mr Brown and Hilary Benn both refused offers of cash through Ms Kidd. Baroness Jay, a member of Mr Benn's campaign team, asked Mr Abrahams to donate in his own name because using a proxy was probably not legal – suggesting that the deceit was known about in some Labour circles.
Mr Mendelsohn today issued a statement in which he tried to clarify his position, claiming that he asked Mr Watt about the donations but had been reassured about them.
"I was informed by Peter Watt to whom I reported that this was an arrangement with David Abrahams which was long-standing and which was appropriately dealt with in relation to the Party’s reporting requirements," the statement said. "He told me these donations fully complied with the law, and I had no reason to doubt that information.
"However, I was unhappy with the arrangement whereby donations were taken through a third party, and was determined it would not play a part in our future plans. I was very concerned that these arrangements did not meet the strict transparency test that I wished to see in place.
"I did not discuss this with the officers of the National Executive Committee or party leadership but I decided to tell Mr Abrahams that his method of contribution was unacceptable. I had no intention of asking Mr Abrahams for donations and wanted to give him the courtesy of explaining this personally."
Mr Abrahams said this morning that he had received no correspondence from Mr Mendelsohn until yesterday, after the scandal broke, when he finally received a handwritten letter through the post from Mr Mendelsohn inviting him to a meeting in London to discuss his donations.
Even then, he said that it appeared to be couched as soliciting further gifts rather than asking him to change the way that he gave. He said that he was at no point told that what he was doing was illegal.
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I think the African leaders should boycott Browns presence at the summit due to labours continued corruption!!
Paul Houghton, JHBG, South Africa
Show me an honest politican and I will show you a wooden box.
Schmuel, Peterborough, England
David Abrahams? Shouldn't that be Lord Abrahams? Oh I forgot, that's in the next New Year Honours list.
Steve Roberts, Stavanger, Norway
Next question I have is: "When was Mr. Abrahams name due to come up on the Honors List"? Or, is that too crass of me to ask?
jim johnson, framingham, USA
Can't you all do better than this? In this age of sophisticated spin we really need credible "deny-ability"
I have grandchildren who can come up with more imaginative excuses!
Jim Golightly, Prudhoe, England
We have seen Prime Ministers appoint people to investigate and inquire in the recent past.
Politics is now held in such low reguard that the outcome can be expected to reveal zilch ,as did past enquires when the Prime Minister chose the enquirers and more importantly their "terms of reference".
The gentlmen co-opted should be prepared to sup with a very long spoon.Lord Hutton did his "duty" by the state and his name is forever linked to the chagrin and frustration of people who new perfectly well what had happened despite his friendly examination.
What should be investigated,but not by the Labour Party,is Ministers intervention in allowing planning for a business park in Co Durham.From this we may learn more about the extraordinary circumvention by Mr Abraham and the even more extraordinary response by people who new of it inside Labour.
This could be a biggy!!!!
robert everitt, wolverhampton,
To David Smith in Croydon: there are very clear and obvious reasons for not allowing Mr X to donate money to a political party and pretending the donation was from Mr or Mrs Y. What happens if Mr X turns out to be a criminal? Our ruling political party has been shown to be funded in a similar manner to Al Capone's mafia empire in the 1930's - a leger book of code names and aliases who can't be traced. How is that even remotely acceptable? How is the prime minister's ignorance of the fact acceptable? Where's the responsibility of the leadership? Don't forget, this is a government which sends parents to prison when their children play truant. Why won't the parent of Nu Labour take responsibility for the crimes that his party has committed?
Chris, Norwich,
Ignorance is no defence in the eyes of law.
Ask any slightly speeding motorist, smoker in the wrongn place, or a transgressor of any number of small minded and petty laws this government has brought in.
Time for them to face the music
David, S, Kent
"Since when has ignorance been an excuse"?
Since we adopted the US policy of 'plausible deniability'. If nobody tells him then he can 'honestly' say that he didn't know but now that he does know he'll jolly well sort it out. This usually means a costly white wash enquiry and the resignation/sacking of some low ranking pen pusher.
It's all a game and the electorate are treated with utter contempt while our so called representatives play it.
Jim Martin, Liverpool, UK
Smoke and mirrors conceal the real questions, which every hack is avoiding. Why did Harman need ten thousand oncers to fight her campaign for the deputy leadership?. What exactly did she spend the money on? In the old days candidates toiled around the corridors or sent emissaries. Young Benn is not off the hook either. He may have turned the tainted lolly down, but would he have done if it came from another source?. Ditto Brown, same point..
These were not donations to the general campaign funds of the Labour Party. They were offers to specific individuals in order to advance their careers. Cameron, if he had any political skills, which he does not, would have hammered that home until Brown's nose bled.
As it is convenient faulty memories (why can Labour ministers remember nothing these days - does that apply to their day jobs too?) and the zero attention span of the celebrity drenched British public will lead to a repeat of the cash for honours scam, be sure.
J Barter
John Barter, Padova, italia
The Labour government has lost the moral right to govern this country. At every turn we see corruption and dishonest practice. As a child I used to hear about corrupt regimes around the world. I never imagined that my country, Britain, would one day become one of those rotten regimes. Labour have brought great shame on our nation.
Tony Makara, Manchester,
I am not a taxation specialist but one important point arising is whether the various proxies have declared or anticipate declaring the monies received from Mr Abrahams in their tax returns? As I understand it, there was a business relationship between Mr Abrahams and several of the parties; I know that if I were to gift large amounts of money to my business partners or staff, they would be obliged to declare the monies received, irrespective of how they were later used.
Nick Hill, London,
The deceit continues. This Government holds us in such contempt it thinks this will just blow away. But these scandals are building, one on top of the other. Is it right that the British people might have to wait 2 years before having the opportunity to get rid of these cowboys?
M James, London,
Brown claims that he did not know the exect nature of £650,000 donated to the party - a substantial chunk of all private financial contributions. If he really did not know that, how can we be sure that he knows what his government is up to now?
Sergei Cristo, Surrey, UK
A country always gets the government it deserves.
Unless and until enough people are prepared to vote aginst New Labour to give a government of another party a viable majority, nothing will change. A hung parliament will change nothing, increase uncertainty and bring about another election soon.
There is no point complaining about this or that 'scandal' or yet another demonstration of poor judgment, dodgy moral values, sleight of hand or incompetence. There is always another piece of cannon fodder from the ranks to promote to fill the void caused by the departure of the unworthy.
Nothing will change until they are swept away by force of opinion expressed at the ballot box.
In the US they have what are called "Yellow dog democrats" who it is said would even vote for a small yellow dog as long as it was on the democratic ticket. There are like minded Republicans too of course.
The key question is are there still enough 'yellow dog' labour voters to keep them in power.
Tim Brookshaw, Atlanta, GA, USA
That Brown should hold a election , like he promised. Or resign. Brown has only been in power for a few months , and he is already being criticised .
Victorias, Oxford, Britain
Vince Cable, the acting LibDem Leader, accurately noted that gutless Gordon has changed from being like Stalin to acting like Mr. Bean.
Brown seems able to convert order into chaos on every front; some of this government's actions could have been produced by Mr.Bean's scriptwriters.
Rick, London, England
The most telling Opposition intervention came from Vince Cable for the LibDems. It drew the loudest laughs and cheers. Why is this not mentioned.
Bertie JOHNSTON, Overijse, Belgium
What does Abrahams get out of all this munificence?
Never will I believe that these gifts are purely philanthropic.
Remember the Poulson affair? that was up in Tyneside.
Mullarkian, York, UK
PMQ time resembles a typical infant playground with the nice boys being bullied by the likes of Cameron and his Punch & Judy tactics.
barbara McInnis, Lancaster,
Yes, they haven't put their house in order, but the comparison with business does not impress - if you know anything about business you would know very well the fiffles going on in business are far greater because they remain undetected by media and uninvestigated by parliament.
You all just want to have a typical pommy whinge - when Cameron is in the saddle and the Tories are back at their sin and sleaze you'll say exactly the same things. Why didn't you throw the government out when you had the chance just a year or so ago? You're just letting off steam here because you are too lazy to get involved in politics and you haven't the intelligence, patience, perserverance and balanced outlook for it - poor possums.
G Bell, Sydney, NSW
Brown's Great Vision for Britain = Socialist Banana Republic.
Oliver, London,
Poor old Gordon - he's probably the only clean guy at the party which is why he is looking like such a fool. When Blair had these problems he was quite a convincing teller of half truths - presumably because he knew, first hand, what illegal/unlawful acts were being perpetrated by Lord Levy and other Number 10 staff.
Dandy Lund, Beckenham,
These donations are a cancer in politics. Some rich people can override our democratic system to make their interests being realised by bribing the politicians.
My vote and most others don't have any value compaired to donars'.
It is a blasphomie by politicians to say that the right to vote is my most important right in a democracy.
If we all contribute then we become equal. Maybe for £1 from all of us we could get rid of this cancer.
Peter Darlington, Southampton,
I want one question anwered only. Why did Abrahams conceal his donations in the first place? This whole thing stinks, and I'm so far surprised if the PM isnt implicated - his people knew about the scam because he refused the cash, so why wasnt anything done??
Mark, London,
I do recall a picture of Gordon Brown a few months ago in a suit just looking like Mr Bean. Perhaps this could now be used on the next edition of bank notes to remind us for many years about the "great" man and his decent into the swers.
Richard, west midlands,
To David in Croydon.
You make this sound like someone mistakenley put something in his pocket. Shortly after the "maniac" donated funds through intermediaries, the highways agency removed it's objection to a 560 acre developement in Durham. Doesn't that suggest something? I suspect you work for the Serious Fraud Office and also investigated the cash for honours crime (sorry, no crime was committed).
Can you also explain why Harriet Harman would accept a donation via a 3rd party for a campaign AFTER the appointment had been made?
Some would suggest she fancied 5 grand in her poche derrier for a bit of shopping....Me..I couln't possibly comment.
This leaves us with Mr Brown, who knows nothing about what is going on around him, yes, that sounds about right; he hasn't got a clue, he has his own set agenda and he is in charge. He whined and cringed and stamped his petulant foot to get his unelected premiership. Now his cabinet have unwittingly or deliberatelystabbed him in the back.
John , Durham,
Yes, they haven't put their house in order, but the comparison with business does not impress - if you know anything about business you would know very well the fiffles going on in business are far greater because they remain undetected by media and uninvestigated by parliament.
You all just want to have a typical pommy whinge - when Cameron is in the saddle and the Tories are back at their sin and sleaze you'll say exactly the same things. Why didn't you throw the government out when you had the chance just a year or so ago? You're just letting off steam here because you are too lazy to get involved in politics and you haven't the intelligence, patience, perserverance and balanced outlook for it - poor possums.
P S A, Sydney, NSW
What a joke, the guy is the chief fundraiser and an election specialist, if he doesnt know that donations through a 3rd party at that level of a job then Labour is guilty of hiring complete morons and he should be sacked for not knowing basic fundraising. What does need to be said is that he should resign. This has a long way to run
Laurance Allen, Bodrum, Turkey
The sub-Prime Minister has caused a credibility crisis.
Neil, Southampton, England
What the Labour Party has been doing is illegal. Ignorance of the law is no excuse. The police should carry out a comprehensive investigation, and prosecutions should follow.
They have also lied .... we were assured the other day that only the Labour Party General Secretary knew about the 'arrangement.' That never was plausible - they obviously think the general public are complete idiots - and now the truth iis starting to seep out.
And they wonder why politicians are at best distrusted and at worst, loathed.
Donna Walker, Effingham, Surrey
sk is trying to be oh-so-clever in accusing the media of being pro-tory.
I think Labour has been more than courted by the newspapers and especially the electronic media.
I think sk may also discover that indeed the press were indeed assiduous in exposing the sleaze which typified the last Conservative government.
Addie, Manchester, England
I'm not sure I understand Gordon's vision for the country....?
MarkS, Leeds,
Mr Mendelson's statement is at odds with the claims made by Gordon Brown in PMQs today. Brown stated ,in reference to Mendelson's statement, that Mendelson had been informed by the General secretary "the donations had been cleared by the Electoral Commission". Was this a very stupid mistake by Brown , a deliberate lie by him or did Mendelson actually verbally relay this nugget to Brown? "Oh what a tangled web..."
Jim Hendry, Slatina, romania
Dissolve parliament by all means. Have an election. Sleaze will not be an issue - public policy will. Then we might get a new term, a new Tory leader with some decent policies, a stronger and more genuine opposition and have our democracy back under Brown.
L Hartley, Wolverhampton, UK
Just how many 'get out of jail' cards does this government have ?
Prav, London,
Where is the Crown Prosecution Service when you need it? Apparently lots of people didn't know that this was illegal. Since when has ignorance of the law been a reason for not being prosecuted.
Chuck Tolleson, London, UK
blair must be laughing up his sleave at the fife buffoon one callamity after another what a buch of liars they should all be jailed if caught lying,again ,they got off "scott free"(now there's a coincidence) with cash for honours so don't hold your breath on any high level resignations here either.
drew, scotland,
Another whiff of corruption - but what point asking the police to investigate - the politicians are as thick as thieves and seem to be protected by the DPP
richard mullens, London, e
What I find difficult to accept is that this is a man (Brown) who pouted and sulked for years thinking that he had a God given right to the Premiership and yet only now do we see his real worth. No one has ever voted him in as PM. I suspect no one ever would. It's the old Peter Principle at play. But God help us.. who would we put in his place? I always was and remain someone who believed in TB. Watch the Blair Years and understand the challenge which the role represents. He was far from perfect and for Iraq I think he will always be politically dammned but as a PM he was head and shoulders above anyone else in the recent past, including Thatcher in my view, and it seems in the immediate future.
paul martin, Wargrave ,
sk, Eastbourne, Peter Haymes and Jan of Rye this is not about the Tories. This is about New Labour - they make the rules they should abide by them. According to Channel 4 news there is reason to believe that some sort of criminal offence MAY have been committed. An internal enquiry is not good enough. I wonder if Blair knew about this - and how did the SundayTimes get hold of this information? Who is 'Deep Throat'? Aren't all these conspiracies fun.
Ian Burgess, Bristol,
Im just glad Brown didnt call an early election. If they'd have won again we'd be stuck with them for another 4 years
Phill, The Wirral, England
Come on !!!!! Come on !!! Who is briefing the press, Yes Gordon has cooled towards USA foreign policy. The U turn etc what a shambles This is what happens when you put to much power in the hands of the men in Grey suits. What a debacle. Could we please have some democracy back if only a little.
Mark , Gateshead, UK
Today Gordon Brown said the most outrageous thing I have heard him say. He said that he only found out about this on Saturday night.
Since when has ignorance been an excuse?
If he truly was ignorant, then why is it that he was?
As our Prime Minister, he should have implemented systems and placed people to make sure that he does know exactly what is going on.
Brown's supporters AND critics have said that this is a serious man who pays serious attention to detail. He hads been called a control freak.
Yet he decided upon the structure of, implemented the changes and controlled the IRS - but neglected to make sure that there were proper safeguards in place to protect data.
A Company director who presided over the sort of calamities we have seen in past weeks would be held responsible and expected to resign. Why should an unelected Prime Minister be able to plead ignorance and try to continue as if there is nothing at all wrong with his management skills.
anne goodman, Bournemouth, Dorset
ALL RIGHT LABOUR, THIS IS THE SWEENEY. COME OUT WITH YOUR HANDS UP AND NO CALLING TONY, HE CANT HELP YOU NOW. YOUR BANG TO RIGHTS. WHAT HAVE YOU GOT TO SAY?
It want us gov, I am from Barcelona...I know nothing.
Nigel Graham-Miller, Valencia, Spain
Remind me, when did the Tories return the substantial donation they received some years ago from a certain Cypriot gentleman, who fled to Northern Cyprus to escape facing charges in this country? Allegedly the money was not his. Gordon Brown immediately announced the money would be returned. Whatever the rights and wrongs of how the money was paid over, at least it was not stolen.
The Tories should get their own house in order, after all we still don't know whether Lord Ashcroft is living here and paying UK taxes.
Peter Haymes, Felixstowe, UK
Well said sk Eastbourne, it wont happen though as the establishment will close ranks so will the media. The Tories refused to name their foreign donators also refused to agree to limited funding for all political parties.
Jan, Rye, East Sussex
I just love to watch a useless dictatorship writhing in it's own faeces, goodnight Gordon the borders north.
Cromwell, Leeds, England
How can we trust a man such as Brown. to make the decision for us whether or not WE are responsible enough to be trusted with a referendum regarding our position with the EU?
Surely we have now seen enough of the absolute ineptness of him and his gofers to assure us that he is not to be trusted with such an important matter as this. Bring on the general election.
Jimbo, Brierley Hill, West Midlands
In its earnest desire to appear squeaky clean in comparison with others, New Labour sponsored a set of draconian electoral rules which form the petard on which they are currently hoisted. But do these rules make sense in the present context?
If donations to a political party are made with money obtained through criminal activity or in order to obtain pecuniary or honorific advantage then clearly we should be told about it. However, if there is no evidence of such motives then surely we should concentrate our political energies on more pressing matters such as global warming, hunger, disease and poverty.
Meanwhile, there is much commotion about a manâs desire to be an anonymous donor. This cannot in any moral sense be considered a crime! Are we not in danger of confusing a narrow legalism with a proper sense of right and wrong?
David Smith, Croydon, UK
Are we really expected to believe that the reversal of the planning decision concerning this Property Developer 's £600 million project had nothing to do with his £600 thousand donation to the Blair / Brown's wonderful Government ? I think I see a pig just flying past my window?
Alan Heywood, Eastcombe, Nr Stroud, Gloucestershire
John Casson, Vienna. Well said !!
The LibDem's acting leader, Vince Cable, referred to gutless Gordon Brown as 'Mr.Bean' in Parliament today. Brown has been looking more and more like Mr. 'Has Been' since the Northern Rock debacle and he has been reeling from one Labour crisis to the next ever since.
Rick, London, England
Score another point for the virtues of Western Democracy proving one again why we are the best country in the universe.
Justin, London,
1. Disolve the government and call a general election
2. Admit wrong-doing, and expect to be prosecuted to the full extent of the law.
W Smith, Oldham,
To quote Lord Acton,"Power tends to corrupt,and absolute power corrupts absolutely. Great men are almost always bad men." There are many "great" men and women of all political persuasions, therein lies an enigma for the electorate!
Rod Ballard, Leicester,
I am not a taxation specialist but one important point arising is whether the various proxies have declared or anticipate declaring the monies received from Mr Abrahams in their tax returns? As I understand it, there was a business relationship between Mr Abrahams and several of the parties; I know that if I were to gift large amounts of money to my business partners or staff, they would be obliged to declare the monies received, irrespective of how they were later used.
Nick Hill, London,
"Baroness Jay of Paddington, on Mr Benn's campaign team, noticed that the money was not originating with Ms Kidd and called Mr Abrahams to ask him to donate the money under his own name."
How did she notice? Wasn't it a cheque signed Janet Kidd? How did she connect Ms Kidd's donation to Abrahams?
G Adlam, Brighton,
CPS ? Bring it on !
Gordon Lonsdale, Northampton, England
A prediction
This government will do as it always does -
1. launch internal inquiries to spin their own version of reality,
2 A sacrificial official will resign,
3. If it gets bad enough Harriet Harman may resign only to be called back at the next reshuffle,
4. The chancellor will announce new public funding measures for political parties to clear their debts leaving the poor old tax payer to fund the westminster farce.
Chris, Southampton,
I do hope that the media is as good at investigating and exposing Tory funding!
sk, Eastbourne, East Sussex
Surely the fault is Tony Blair's as the donations came in during his leadership?
Farrukh, Woking, UK
Scum the lot of them.
When Gordon Brown created his "government of all the talents" presumably he was using the biblical reference to talents i.e. money.
Jon Casson, Vienna,
Resignations? What is wanted here is a full Police investigation. There is the stench of corruption at the highest level.
Neil, Gloucestershire, England
Our New Labour government is once again embroiled in corruption and sleaze. Whatever excuses they make will lack credibility and rather than being allowed to spin themselves out of yet another mess they should be held to account to the people of this country in an early General Election. As the acting (sic) PM of this country, Brown has no mandate from the people. As one crisis after another reveals, he is (and his clique in cabinet) clearly unfit for office. Heaven help us if he stays in 'power' for the duration of this parliament. We will all be bankrupt.
Tony, NICE, France
Looking at Brownâs front bench - are these is countryâs inspirational leaders?
Brian Christley, Abergele, UK
Anyone in the government who has denied wrong-doing, and then is subsequently shown to have lied, should not "stand down", but be fired, and the possibility of criminal charges being brought against them considered.
If this brings the government down, so be it.
W Smith, Oldham,