Marie Woolf and Jonathan Oliver
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THE health secretary Alan Johnson became the latest cabinet minister to be embroiled in a scandal over donors last night after he was accused of accepting cash through a proxy.
A student, Waseem Siddiqui, said he was asked by his brother, a local Labour party official, to write a cheque for £3,334 towards Johnson’s failed bid to become deputy leader.
Johnson admitted last night that the gift was one of four donations he had received that have not yet appeared on the register of the official watchdog, the Electoral Commission. There are conflicting accounts about when his campaign notified the watchdog.
The revelations will cause severe embarrassment for the health secretary, coming just days after the resignation of his cabinet colleague Peter Hain, who faces a Metropolitan police inquiry into £103,000 of undeclared donations for his own failed deputy leadership bid.
It was reported last night that Harriet Harman, the winner in the deputy leadership race, will be interviewed by police investigating donations made to her campaign by a proxy for the controversial millionaire property developer David Abrahams.
Siddiqui, 50, from Pakistan, who has lived in Croydon, south London, on a student visa for the past three years, said his brother Ahmed Yar Mohammed, who is treasurer of Croydon Central Labour party, told him to write the cheque in June and then gave him the money. “He said, ‘You write a cheque, I write a cheque for that, for the Labour party,” Siddiqui is said to have told the Sunday Mirror newspaper. “That time I have no money, no job.”
Siddiqui said he neither knew who Alan Johnson was nor had any interest in the Labour party.
Johnson’s camp said last night that Siddiqui was known by volunteers in his campaign and lives near the minister’s south London home. He is named on the electoral register and is eligible to make political donations. However, the 2000 elections act forbids donations to be given by third parties unless the real donor is declared to the Electoral Commission.
Although Johnson says his campaign team first submitted details of the donation to the commission in the summer, sources close to the watchdog said it was not informed until December, when the details were resubmitted.
Johnson was first told about the problem with the proxy donation yesterday and according to staff was “shocked”.
“We had no reason to believe the donation came from anyone other than Mr Siddiqui,” a spokesman said.
“When finalising our accounts last year we double-checked that donations to the campaign were properly declared. We confirmed that we had notified the Labour party and paid the necessary levy on all donations. We also notified all donors that their name and their donation would be made public and appear on the Electoral Commission website.”
But there were unanswered questions last night about why, if Johnson had registered the donation from Siddiqui with the watchdog, it had failed to register it.
The commission is carrying out checks on the donation, which if registered in December would have been months late. Three other donations to Johnson did not appear on the commission’s website, including a donation from AA Care Homes for £1,500. Dr Anwar Ansari, the vice-chairman of Croydon Labour party, is listed as a director of the company, which had previously given £1,660 to Johnson. Ansari’s firm owns the flat that Siddiqui rents in Croydon but the doctor denies he had anything to do with Siddiqui’s donation.
“The commission undertook to check their records and we immediately resubmitted forms for the four donations so there could be no doubt of our intention to register these donations,” the spokesman for Johnson said.
The other donations were from Sonny Leong (£2,000), Siddiqui (£3,334) and Songlines Ltd (£2,500).
However, Johnson’s campaign admitted that the Songlines donation had not been notified to the Office of the Parliamentary Commissioner for Standards.
Undeclared donations claimed Hain’s cabinet career last week after he was forced to resign as work and pensions and Welsh secretary. Hain had failed to declare £103,000, some of which was channelled through a little-known think tank. The Electoral Commission asked police to investigate after a “thorough review of the case”.
Police are already investigating £650,000 in donations to Labour from Abrahams, the Newcastle property developer. He channelled £381,850 to the party over the past four years through his secretary Janet Kidd and Ray Ruddick, a builder who worked for him. Kidd also donated £5,000 towards Harman’s campaign.
Labour party sources said the prime minister had recently been made aware that Johnson was discussing donations with the Electoral Commission. Mr Brown is apparently “relaxed” about the situation.

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If this guy (Siddiqui) is here on a student visa, how can he be legally on the electoral register?
.
A. Dakers, Carlisle,
Labours are just good for jokes!
riccardo, brussels,
Lessons will be learnt
John, Essex, UK
What else would you expect him to say? Politicians wouldn't know the truth if it jumped up and bit them.
judy, Liverpool, England
These people are running the country - Too busy,forgetful,administrative error, admitted 'incompetence the list of excuses is endless. You would not trust any of them to run a sweet shop - They might get an A level running a burger bar but you cannot help thinking the takings would be short every single day.
Nigel Ashurst, Leicester, England
Another example of "NEW LABOUR" morals or is it "OLD" habits. We deserve better but its in our own hands to do something about this lot at any election soon. Make the rules break the rules but say "SORRY" and its OK
G.J. Mason, CARDIFF, WALES
Here on a three-year student visa at 50! How very interesting. More information, please.
JM SMith, guildford, surrey
"The Health Secretary admitted last night that the gift was one of four donations he had received that have not yet appeared on the register . . . . . . . "
Oh! Pleeeeeze!
OK folks.
Next time you fill in a tax return try this -
Well Mr Tax Inspector, I didn't realise that I had to declare all my income - I thought that they just appeared on the return.
Yeh! Right!
R Bingham, Lauzun, France
Why is someone who is on a 'student visa' [at 50?], listed on the electoral role, surely he cannot be entitled to vote in our British elections? It is quite obvious that Mr Ahmed Yar Mohammed wished to make the donation without being named! The reasons why he wished to hide his donation can only be speculated about at this point but he should face investigation. A change in the law requiring all donations to be direct only is needed, with one independant central body to act as a 'clearing house' and manage donations for all parties.
Les, Southport, England (a country, not a state)
Yet another one! The entire list of candidates for the Deputy Leadership should make a joint clean breast of it now and just get the thing over with.
One really has to wonder just why so much money was sloshed around in the campaign to succeed Prescott. There is more to this than meets the eye methinks.
Bill, Suzhou, China
Despite changing the law on political donations that same political party seem incapable or either understanding it or had no intention to comply with it anyway. Hiding the name of a sponsor is illegal and is exactly the same technique as money laundering used by criminal drug gangs. These arrogant Labour politicians seem to either think the electorate is too stupid with all their variety of lame excuses such as too busy, wasn't aware, didn't understand and such like or are just plain arrogant towards those who elect them into power. The public never gets away with the sort of excuses they have escaped with when appearing in court. Its way overdue for some of these sleaze bags to be arrested & charged and maybe if found guilty in a court they'd think twice next time.
Mike, Alicante, Spain
Why do such senior people in the government fail to comply with rules they have framed and passed themselves ? Is it arogance or incompetence? It cannot be ignorance.
More importantly what is the motive behind all this deception and these opaque financial transactions ? Surely it cannot be the motive we all fear. ?
But then I can think of no other. Can you, dear reader ??
Diddly Do, Liverpool,
It is so disconcerting to see that some politicians keep tossing and turning to deny what they in the end have to admit and what they knew all along. You wonder what others have in their cupboards.
I also do not believe that there is a single donor who doesnât want something in return. Complete openness is the only answer or probably to do away with separate funds.
Fortunately we still have the press to guard over our democratic freedoms.
Dr Willem van IJperen, Elgin, Moray / Scotland
Corruption in the Labour party is clearly endemic they all seem to think they are above the law.
D Case, Newquay,
50 year old foriegn student giving £50,000 to a goverment minister??
Danny, London, uk
Johnson was being interviewed by Jeremy Vine on Radio 2 when the Hain news broke.
The news was obviously a surprise and Vine said that Johnson looked 'shocked'.
Maybe not so much by Hain's fate as a prediction of his own!!
Jonathan, Farnham, England
Victor from Chelsford asks what a state we are in.
I feel (and this is not a party political point, I think it applies to all politicians) that in both the UK and Europe as a whole the political class has lost all credibility in its claim to represent the people. It serves itself only. The democracy towards which the West has struggled for the last 2,500 years has been thrown away in favour of a myriad of personal ambitions. It is a disgrace.
John, Kenilworth,
David Rochester, the Deputy leadership was elected by the 350+ Labour MPs, the 200,000 Labour Party members and 4,000,000 levy-paing trade unionists. Don't try to imply that a popular campaign among MPs would win it because it wouldn't.
The Alan Johnson campaign would be a members association under the Electoral Commission rules. Members associations don't have to declare donations under £5,000 and they don't appear on the Electoral Commission's website. Also, it's up to the proxy donor to declare that they were given the money, not to the campaign that receives it.
David Boothroyd, London, UK
Ministers and MPs are paid a very decent wage. I do not see why they need "donations" to fund their campaigns.
It would have cost Johnson nothing to email all his colleagues his plans. As a former postman, Johnson will also know that it would have cost him only £100 in stamps to send a letter to all his fellow Labour MPs. Johnson could also give interviews to the media for free, he could also hold a press conference for free.
So why do they take all these "donations"? I think the answer is obvious....
Make them pay for their campaigns out of their own pockets!
David Rochester, Liverpool, UK
A 50 yr old student ?
Andy, France,
Breathtaking....no not the money, it's the stupidity of our rulers and masters. Think about it, would you let these people run your whelk stall??
These are same people who won't allow the public (their employers) a vote on the EU consitution. What a stae we are in.....
Victor M., Chelmsford, Essex.,