Two months ago the contents of anonymous white envelopes marked “private and
confidential” surprised a number of Labour’s backers.
Inside was an invitation from Jon Mendelsohn, Gordon Brown’s fundraiser, said
to be keeping a low profile after being dragged into the “Donorgate” affair.
He wanted them to come to Central London to discuss campaigns with Cabinet
ministers. Mr Mendelsohn wrote that “the Government is mid-term and in the
process of preparing and planning for the next general election” and would
appreciate an opportunity to “discuss ideas and campaign proposals”.
It left some of those invited stunned. As one guest told The Times: “I
thought the kind of gifts I have given would not warrant this. I was
immensely flattered.”
Last Tuesday, Labour Party officials, ministers, industrialists and a
comedian gathered at the Royal Horse-guards Hotel, just 150 yards from
Downing Street.
Inside the candlelit Chelsea Suite, which has a spectacular view of the
Millennium Wheel, diners received a glass of champagne and were invited to
mingle. By 7.30pm they had taken their places around an oval, linen-covered
table for their starter of honey-peppered duck breast with orange salad and
pink peppercorns.
The seating plan ensured that every potential backer was near to a Labour
official, including Mr Mendelsohn and Chris Lennie, the acting general
secretary of the party, who hosted the event. Lord Sainsbury, the party’s
most generous donor, and Jon Aisbitt, the City hedge fund manager who gave
£250,000 last year, were also present. Before a main course of beef
wellington with herb-infused vegetables, accompanied by a burgundy, Mr Balls
made a short speech about the need for trust in education.
The delicate subject of future donations was not mentioned until the end of
the evening. It was raised by a donor and then quickly brushed over by a
Labour official.
Stefanos Stefanou, an ebullient Greek Cypriot-born businessman who has given
up to £40,000 to the party, asked one official: “What are you expecting from
us? Is it a contribution?”
The Labour official lowered his voice and replied that the dinner was
supposed to be limited to an exchange of ideas. He then paused before
implying that the party would be in touch for contributions before the
general election, one guest said.
After a chocolate pudding served with physalis berries, the ministers were
introduced to each backer.
Martin Littler, 59, the chairman of Inclusive Technology, the special
educational firm that has donated £15,000 to Labour over the past five
years, said that the meeting had been particularly useful for him because he
had met the Education Minister. “I am always flattered and surprised to be
invited to this kind of event. Ed Balls was very good. How often would a
businessman like me get a chance to speak to the Education Secretary like
this?” he said.
By 10.30pm both ministers had left in their chauffeur-driven cars. According
to their spokesmen, they were entitled to use them despite visiting a party
event because of a possible House of Commons vote. Lord Sainsbury left at
the same time. He said: “It was a perfectly proper private meeting and we
talked about politics.”
Some of the party’s backers were happy to describe their evening as they left
the dinner, which is believed to have cost Labour about £2,000.
Sonny Leong, 54, from Chilton, Oxford, who in November became the chairman of
One Charter, a private aircraft charter, said that he had had a “very good
time”. He first came to public attention last month after the disclosure
that he had given Alan Johnson, the Health Secretary, £2,000 for last year’s
deputy leadership campaign. “It was a great exchange and we discussed a
whole range of things including policies,” he said.
Bill Bottriell, the London-based founder of SThree, the IT company, who has
given £48,000 to the party since 2005, said he was inspired. “It was good.
We are going to beat the Tories. Boris Johnson is an a***hole.”
Others were less forthcoming. Mr Lennie, who actually hosted the dinner, was
approached as he left the hotel and asked if he had been to the Labour Party
meeting. He replied “No” before walking quickly into the night. Yesterday a
friend of Mr Lennie claimed that he had misheard the question and was
actually saying that he did not wish to comment.
M. T. Rainey, an advertising executive who is close to Gordon Brown,
initially denied attending the meeting. The following day, when contacted,
she conceded that she was there but had been concerned that it was supposed
to be a secret. “I think the party was interested in what this particular
constituency had to say,” she said.
Some of those invited to attend were surprised that the party was not wooing
bigger donors. One said: “It smacks of desperation. Where are the [Bernie]
Ecclestones and the [Lakshmi] Mittals?”
Labour is £19.8m in the red and still owes several million pounds to wealthy
businessmen embroiled in the “cash-for-honours” affair, where entrepreneurs
were allegedly offered peerages in return for cash. Labour insid-ers say
that the party suffered a significant drop in small donors over the last
quarter of 2007 and relied on unions for £2.8m in donations.
A Labour spokeswoman said last night: “The party holds regular dinners for
its longstanding supporters.”
Enjoying the party
Ed Balls, 41, Minister for Schools and main speaker at the dinner.
Described as Gordon Brown’s closest political ally.
Worked as his economic adviser from 1994 and has powerful friends in the City.
Married to fellow cabinet minister Yvette Cooper
Jon Mendelsohn, 41, director of general election resources, signed
invitations to dinner. Followed Lord Levy into dangerous political job of
personal fundraiser to a Prime Minister and immediately found role under
scrutiny.
Forced to admit in December that he had known for two months about David
Abrahams’ scheme to hide donations from electoral authorities by using
“proxy donors”
Shaun Woodward, 49, secretary of state for Northern Ireland, second
speaker at dinner.
Related to Lord Sainsbury by marriage and in 2001 was said to be only Labour
MP with a butler. Told The Times on leaving dinner they had not talked about
policies but had a “worthwhile exchange of views”
Chris Lennie, 55, Labour’s acting general secretary and official host
of dinner.
Unison representative and former director of party’s north- east regional
office and succeded Peter Watt, who resigned after admitting knowledge of Mr
Abrahams’ “proxy donor” scheme for a year. Overseeing Labour’s investigation
into proxy donors
Lord Sainsbury, 67, Labour’s most generous donor, giving more than £8
million since 2002.
Still large stockholder in supermarket chain that bears his name. Junior
Minister for Science under Tony Blair, resigned in November 2006 to spend
more time working on charitable causes. Questioned by police over the cash
for peerages
Jon Aisbitt, 50, director of Man Group, Britain’s largest hedge fund
firm, thought to be worth more than £100 million. Has donated £250,000
annually to Labour over past three years.
Also gave £250,000 to Mr Blair’s 2005 election campaign and pledged £2 million
for city academy in Brighton
Martin Littler, 59, chairman and CEO of Oldham-based Inclusive
Technologies, said he had given around £15,000 to Labour and was “flattered”
to be invited to dinner
M T Rainey, or Mary Rainey, 52, former advertising executive, close to
Mr Brown. Set up mentoring networking website, horsesmouth.co.uk, launched
last year at No 10 reception.
Non-executive director at Scottish Media Group and WH Smith, founded Rainey
Kelly Campbell Roalfe. Says she has given small amounts but not enough to
register with Electoral Commission
Sonny Leong, 55, from Chiltern, Oxfordshire, chairman of airline
chartering service One Charter plc, has given £56,755 to Labour since 2004.
Came to prominence last month after Alan Johnson was criticised for
registering late donations, including £2,000 from Mr Leong. Previously
involved in successful publishing ventures
Bill Bottriell, 50, from North London, founded online recruitment
company SThree which floated in 2005. Has given £48,000 to Labour’s HQ since
then, but came to attention last year when Mr Hain failed to declare
donations including £5,000 from Mr Bottriell towards deputy leadership
campaign.
Reportedly a Tottenham Hotspur shareholder, once paid £1,700 for tour of No
10, auctioned by Cherie Blair to raise funds for sons’ school, the London
Oratory
Stefanos Stefanou, 66, chairman of Hertfordshire construction company
John Doyle Group plc, has given £40,000 to Labour. Donated to Harriet
Harman’s successful mdeputy leadership campaign.
Appointed OBE last January for services to construction industry.
Simon Fanshawe, 51, from Brighton. Broadcaster, social activist,
comedian and self-styled manners expert, minor donor and surprising addition
to group
