18 months after the Electoral Commission called in the Metropolitan Police to investigate the donation made by David Abrahams to the Labour Party by proxy, the Crown Prosecution Service has delivered its judgement on the investigation. Unfortunately not on their own web-site but let's assume Sky have got it right. It is now - CPS Press Release.
They point out the rules have been broken - constituting a criminal offence - but that the people investigated, including
Peter Watt who was forced to resign as Labour General Secretary over the issue, did exercise due diligence.
This issue revolved around the fact that
David Abrahams - a permissible donor - gave money to other permissible donors, who then gave money to the Labour party. This was done by Abrahams to protect his identity - failed. There is no doubt that donors must make full disclosure of the fact that they are using third parties to make a donation. David Abrahams did not. However, it was his money. He was a legitimately allowed to make a donation. The people he gave the money to were legitimately able to make a donation.
So having spent an extraordinary amount of tax-payers money to discover that an offence has been committed for which no-one was to blame, perhaps the powers that be could now get on with the investigation into
Lord Ashcroft who it is alleged is an impermissible donor using overseas money to find the Tory Party.
As the Daily Mirror first revealed, the Electoral Commission started an investigation into the peer last year.
It followed claims £4.76million had been transferred from the Central American tax haven of Belize to Lord Ashcroft's UK-based company Bearwood Corporate Services.
The firm is one of the biggest donors to the Tory party, giving £4.74million since 2003.
Electoral law says donations can only come from UK-based companies. Tory vice-chairman Lord Ashcroft, said to be worth more than £1billion, has used the money to bankroll Tory candidates in marginal seats.
And no doubt those who accused the thoroughly decent Peter Watt of acting criminally will now be queueing up to apologise. (update - statement form Peter Watt reported
here)
