Philip Webster, Political Editor and Francis Elliott
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Gordon Brown was facing a full police investigation into Labour’s donations scandal as his campaign team admitted yesterday that it had links with David Abrahams.
The Prime Minister was dragged deeper into the affair after it emerged that his election staff had told Harriet Harman about a proxy for Mr Abrahams who might be willing to offer her financial help. It was disclosed that Mr Abrahams himself contacted Mr Brown’s team, giving them the name of Janet Kidd who was acting on his behalf as a potential donor to his campaign to be Labour leader.
Although the Brown campaign eventually tore up Mrs Kidd’s cheque for £5,000 because she was not known to them, it suggested her name to Ms Harman when she was looking for help to pay off her campaign debts after being elected as deputy leader.
She received £5,000 from Mrs Kidd, a secretary for Mr Abrahams, but has insisted repeatedly that she did not know that the money was really from Mr Abrahams. Friends of Ms Harman claimed that her campaign team had “no idea” about David Abrahams until last Friday. They alleged that a cheque had arrived from Mrs Kidd accompanied by a note saying that it had been sent “following conversations with Mr [Chris] Leslie”, suggesting that it had come entirely at the initiative of Mr Brown’s campaign chief.
The latest extraordinary twist emerged after Mr Leslie, the former minister who directed Mr Brown’s campaign, went through his notes in preparation for the Labour internal inquiry being conducted by Lord Whitty, the former general secretary.
He found a reference to a telephone call from Mr Abrahams in which he had said that Mrs Kidd wanted to donate, but had not said that she was acting on his behalf. Mr Leslie said: “In late May I received a phone call from a man calling himself David Abrahams referring to a woman named Janet Kidd who said she wanted to be a donor to the campaign. I did not know who Mr Abrahams or Mrs Kidd were.”
Mr Leslie said: “At no point either then or afterwards was I aware that Mr Abrahams was a donor to the Labour Party or that he was using Mrs Kidd or others as proxies to make donations to the party.”
He added: “Subsequently, when the leadership election was over, I was approached by members of Harriet Harman’s campaign team asking if I knew of any individuals who might donate to her deputy leadership campaign. I passed them the details of Mrs Kidd as someone whose offer of a donation we had not taken up.
“The Prime Minister and Jack Straw [Mr Brown’s campaign manager] were at no stage involved in, or aware of, the contact from Mr Abrahams or the offered donation from Mrs Kidd, as it was not my practice to discuss with them offers of donations which we did not intend to take up.”
Baroness Gale of Blaenrhondda, treasurer of Ms Harman’s campaign, said: “As part of our fundraising effort, the campaign team approached Chris Leslie at the end of June and asked if he could put us in contact with anyone who might be approached to donate to our campaign.
“Contact was made with Janet Kidd, a donor to the Labour Party of long standing, who then sent us a donation for £5,000. We had no reason to believe that this donation was coming from anyone other than Janet Kidd.
“Harriet Harman first heard about this on Friday and the campaign has arranged to return the donation to Janet Kidd.”
The Times also learnt that Mr Brown was the guest of honour at a dinner at which Mr Abrahams alleges to the BBC that he was “buttered up” by Jon Mendelsohn, his fundraiser. Mr Brown, then Chancellor, spoke at the annual dinner of the Board of Deputies of British Jews held in April this year. Also at the event were Mr Abrahams and Mr Mendelsohn, who has admitted that he knew that the controversial property developer was using proxies to donate significant sums to Labour.
In his statement explaining why he did not speak out on learning of the arrangement, Mr Mendelsohn has said that he had a “history of past disagreements” with Mr Abrahams and was determined to end his secret funding. However, the two men sat side-by-side at the fundraising dinner in the Portland Hotel, London, this spring. A Labour spokesman said that Mr Mendelsohn recalled sitting next to Mr Abrahams but categorically denied that he had solicited cash.
A senior figure at the Board of Deputies of British Jews said that Mr Abrahams had been invited because he was a well-known supporter of charitable causes and that it was a “bizarre coincidence” that the two men had been seated next to one another.
The Times has also learnt that officials from the Electoral Commission have raised doubts privately about Mr Brown’s decision to return Mr Abrahams’s £600,000 in unlawful donations. Commission staff were examining whether it was appropriate for an unlawful gift to be returned to the donor, who could give it back to Labour in his own name. The regulator has powers to apply to a court for an illegal donation to be surrendered to the Treasury’s Consolidated Fund.
Labour’s donations controversy spread to Scotland yesterday when Charlie Gordon, a Labour MSP and shadow minister, quit after admitting that he unwittingly misled Wendy Alexander over a £950 donation.
The donation was from Paul Green, a businessman based in the Channel Islands, to the leadership campaign of Ms Alexander. The sister of Douglas Alexander, the minister who master-minded Gordon Brown’s election campaign, she was elected to lead Labour in Scotland in September.
In a further twist, Peter Hain, the Work and Pensions Secretary, admitted that he failed to register a £5,000 donation to his deputy leadership campaign from Mr Mendelsohn. Mr Hain blamed an “administrative error”.
Mr Mendelsohn, who was not the party’s fundraiser at the time, is facing calls for his resignation.
A YouGov survey for The Daily Telegraph puts the Conservatives on 43 per cent – 11 points ahead of Labour on 32 per cent, with the Liberal Democrats on 14 per cent.

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Never mind the 100 tax increases, 2 lost CD's, Cash for Honours, lack of defence funding, illegal donations etc, etc, Mr Bean wear's a lounge suit when attending the Guilhall Dinner.
Does't that say it all!!
jwilliams, Birmingham, UK
I didn't know that 'corruption' was spelt a-d-m-i-n-i-s-t-r-a-t-i-v-e e-r-r-o-r . . . I suppose that's what a comprehensive school education does for one . . .
Andrew Perrott, London, UK
Coincidence indeed Mendelsohn seated next to the man,who we are told,is Labours third biggest donor.
The new fundraiser,fresh out of school and wet behind the ears,so he would have us belive,succeeding pixie Levy is so niave he said nothing to anyone about illegal donations while making donations himself to the orange one.
Harman took the money after touting for it,while forgetting exactly who approached who.
Leslie has an unlikley tale ready for the yard but how did Baroness Jay know to steer clear ?
The orange Hain finds an "administration error " and both the up and coming Alexanders get a mention in despatches.
So many people who care enough about money that they amass large amounts of it only to feel the altruistic need to give it to politicians through third parties.
The policeman looking into this will have a field day.
This lot stink,but then we knew that.
robert everitt, wolverhampton,
Abrahams contributes in the order of £600k to labour funds and claims anonymity..yet he is prominent in labour activities.
His nominees, each have contributed approximately £200k each..a significant sum but we are told are unknown to labour and apparently have not been rewarded for their largesse in any way
This might suggest that the Abraham secret was in fact no secret at all
c hoey, liphook, hants
It is clear: Brown and Benn should have declared the returned donations in the electoral commissions register. If you look they are not there.
MPs are required to declare gifts from unidentifiable (Brown's reason for returning the 5000 from Mrs Kidd) or impermissable donors (Benn's reason for returning the 5000 from Mrs Kidd).
Therefore Msrs Brown and Benn need to clarify this ommission from the register urgently. After all, Alan Johnson declared the 1000 he sent back to another donor. As Mr Brown says it is inexcusable, he would have only one course of action, unless the register is wrong.
Damien, Monchengladbach, Germany
Harman's team accepted Mrs Kidd's donation because she was "a donor to the Labour Party of long standing".
Brown's team rejected Mrs Kidd's donation because "she was not known to them".
Someone is fibbing.
David B, Southampton, UK
and the investigation will be carried out by sir Tony Blair....ops Ian Blair.....
I don't know what is worse....
riccardo, brussels,
don't worry, history has already proved that English laws do not apply to Labours.....there must be a clause somewhere...
riccardo, brussels,
Oh! Pleeeeze!!
More competition for the Brothers Grimm.
The "know" as used by politicians and others in the context of "I did not know . . . . . . . . . " is quite different from the generally accepted meaning of "know".
For politicians it means that - whilst I was suspicious and had reason to believe - I did not want to know and therefore either I did not ask or I instructed my staff not to tell me.
This means that these morally bankrupt power-seekers can say "I did not know".
The police will waste yet more hundreds of thousands of pounds and the CPS will then decide not to prosecute.
Here's an alternative - a vote of no confidence against the Prime Minister and a quick General Election.
R Bingham, Lauzun, France
Browns team eventually tore up the cheque from Kidd because she was not known to them...
Is that the way Gordon Brown treats donors not known to him - he tears up their cheque?
Is this a new Labour Party policy - no donations unless the donor is known personally by Mr Brown?
Did he not write to Mrs Kidd, thanking her for her donation, but explaining that it would not be accepted because...
Will there not be a paper trail?
Does Mrs Kidd recollect being told that her donation was not acceptable because she was not known to Brown, and if she does, would she have explained that it really wasn't her money but Abrahams?
Did Brown not invite her to donate the money to the Labour Party instead?
He just tore it up?
Should we believe his manners are really that bad?
Eddie, Cheshunt, Herts
Mr Abraham's Tax Return might make interesting reading
Cliff Collis, London, UK
The silence from Milliband throughout all of this is deafening!!
The tories need to associate Milliband to these allegations as I dare say he and his team are quietly preparing for a near future takeover when Brown becomes just too much of a liability for the socialists!!
Anthony Hegarty, Seoul , Korea
At this early stage, it would be prudent for Mr Brown to suspend both Ms Harman and Mr Hain from all further duties, otherwise the press speculation will continue unabated and the trail will eventually lead to himself and his full resignation. Better to apply a pen knife now than a Stanely knife later. That said, Mr Brown is indeed a control freak, as claimed by Mr Cameron yesterday, and control freaks have the (mistaken) hubris to think they can wriggle out of the labyrinth. If so, Mr Brown's days at No 10 may well be numbered. More generally, I believe it is now time for stricter rules to govern political life across Europe, otherwise Europe, not just the UK, will sink in the mud-slide of sleaze and creative accounting which is currently spreading across the continent. The gaping hole in the EU's 2006 accounts is but the flip-side of bureaucratic sleaze. The invisible hand of the anonymous donor becomes the invisible recipient of the anonymous donation: money from nowhere to nobody.
Dr David Green, Athens, Greece
Oh, for a present day Gilbert and Sullivan!
Ally, Motherwell, Lanarkshire
If ( big IF ) Gordon Bean knew nothing about these criminal actions going on all around him, then he is incompetent and not fit to be prime minister. If he did know the extent of the sleazy operations of his minions, then he is equally to blame and should be questionned by the police.
Either way, the stench of corruption in Labour is just too strong to leave them in control of ths country. They must go - and very soon.
Rick, London, England
Another fine mess and whilst this fiasco brews, the Government continues to fail in its duty to govern and lead the United Kingdom. There are so many fundamental issues that are festering away - the economy, crime, immigration, education. Gordon Brown and his cabinet need to get a grip fast!
Michael Lewis, St Albans, Herts
So much for not knowing him. I am sorry but we are being systematically lied too by this Govt over the last month. They should be sacked.
Laurance Allen, Bodrum, Turkey
Labour tried to convince the public that they are cleaner than the Conservatives. This just shows that they merely had their cupboard locked more securely than the Conservative's did.
Once it came unlocked, those skeletons have come tumbling out.I'm afraid that this is the reality of politics. Labour must now think very carefully.
It was slease and the public perception of corruption that brought about the down fall of the Tories. HowLabour deal with this will be crucial to their future. The public does not like being made to appear gullible or stupid.
Chas Moore, Lower Stondon, United Kingdom
Once again the politicians who currently form Britain's Government are tainted by allegations of corruption. One hopes that the tainted Metropolitan Police Commissioner, who of course owes these politicians a favour for allowing him to remain in his post, is not allowed any input into the investigation.
Neil, Gloucestershire, England
Is this not a case where the doctrine Ignorantia juris non excusact applies?
Let us have some honesty and some facing up to the facts
j pickles, oban, scotland
This is another ridiculous political British "corruption" story. In this world, it doesnt get to first base in terms of corruption.
The only thing of any interest is not if Abrahams gave money through tame directors but if these donations led to any special favours.
j gallagher, montreux, switzerland
Why is the rejected 5k not mentioned on either Brown's or Benn's electoral commission return?
They are required to register donations from impermissible or unidentifiable donors, which are the reasons given for rejection in these cases.
i.e. You can not just tear up cheques and pretend it never happened.
Damien, Monchengladbach, Germany
For Chris Leslie to claim that a totally unknown David Abrahams rang him up to offer someone else as a donor beggars belief. Is he really trying to say that he was such a lowly minion that he had no secretary/gatekeeper to handle unknown callers? Does he actually expect us to believe that just anyone can call his office and talk directly to him?
Bob Evans, Anaheim, California