Tuesday, June 24, 2008

Where There's Brass There's Muck

Lib Dem leader Nick Clegg is today taking a pop at the Conservatives and the 'unanswered questions' over their finances. Namely, the tax status of major backer Lord Ashcroft and the extent to which his money is bankrolling campaigns such as the by-election in Henley, and the Crewe and Nantwich contest just past.

Reasonable points both. However, wasn't Michael Brown, the Lib Dems largest ever donor, non-resident for tax purposes? Isn't there a suspicion that the company he funnelled the cash through, 5th Avenue Partners, never actually traded in the UK, which would mean, however unwittlingly, that electoral law had been broken by both the proffering and the acceptance of the donation? Isn't he currently serving time in one of Her Majesty's more secure establishments for the crimes of perjury and obtaining a passport by deception? Isn't it the case that the Lib Dems have still to repay a single penny of this cash to the creditors of 5th Avenue Partners? And isn't it also the case that this £2.4m windfall allowed the Lib Dems to fight a much stronger election campaign in 2005 than they otherwise would have been able to do? Just as they, er, accuse the Tories of being able to do with Ashcroft's money?

Don't get me wrong - Ashcroft's status should be questioned, just as should that of Lord Laidlaw, the Scottish Conservatives' Monegasque sugar daddy. The rules about non UK-registered donors are pretty clear, and although the suspicion remains that they were only introduced to try and stop one individual in particular donating to the SNP, they apply equally to all parties and should be enforced as such.

Michael Brown is on trial this coming September, where he will face a string of charges 'relating to obtaining money transfer by deception, transferring criminal property, theft, furnishing false information and perverting the course of justice'. Which, depending on the outcome, may be the trigger which finally forces the Electoral Commission to insist that the Lib Dems repay that £2.4m. With interest, hopefully.

How does the proverb go again? Something about persons residing in vitreous constructions who might be well advised to refrain from hurling heavy projectiles...

5 comments:

Richard Havers said...

So Westminster, So Lib Dem and so irrelevant....

How about something on food prices, food shortages, oil, petrol, tax, inflation, education...I could go on.

That's why they never get anywhere, they're always getting on the wrong bus.

Alex said...

"Isn't there a suspicion that the company he funnelled the cash through, 5th Avenue Partners, never actually traded in the UK"

No, not a suspicion at all according to the judge in the previous trial. It's a nailed on certainty.

Richard Thomson said...

You've clearly got more time to research these things than I do, Alex. I have to be quick, as accurate as possible and make sure I'm not sued into the bargain!

Stephen Glenn said...

At the time the Electoral Commission did confirm that ever conceivable check that the party was expected to make had been made, and said there was no wrong doing on the parties behalf. The fact that the doner failed to disclose everything was outwith that control.

Out of interest where does Sean Connery pay his taxes, bricks and glass houses etc.

Richard Thomson said...

I'm sure Mr Connery pays his taxes timeously, in full and exactly where their due, Steven.

In the case of Brown and the Lib Dems, though, it's not so much the payment as the repayment that's interesting people. Any ideas when that might take place?