28/11/2007

Rough Ride For Prime Minister

The Prime Minister has had a rough day in the Commons today about the Labour donations scandal.

Gordon Brown endured a savaging 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.

(BMcC)

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