Labour loses top donor in sleaze row

ONE of Labour's biggest donors last night warned party chiefs he would refuse to hand over any more cash until they cleaned up the scandal-hit system of political funding.

Glasgow-based millionaire Willie Haughey - who has given Labour more than 1m - said there should be "total transparency" on donations and only then would he give Labour more money.

In a further blow to the party in the wake of the scandal over illegal donations, Scotland on Sunday can also reveal that a key local ally of Wendy Alexander is under police investigation following allegations of "financial irregularities".

Tommy Williams, the former chairman of Alexander's own constituency party in Paisley and a prominent member of Renfrewshire Council, was sacked as a Glasgow City Council official last week amid claims time-sheets had been falsified.

Last night, it emerged that Alexander is also facing an investigation by the Standards Commissioner after a complaint by an SNP member. The complaint centres on why the donations to Alexander's campaign have not yet been placed on the register of interests.

The stream of damaging revelations come as Alexander continues to fight for her job. It emerged two weeks ago that she had accepted an illegal donation during her campaign for the top post. The 950 cheque handed over by Jersey-based businessman Paul Green was solicited by Labour MSP Charlie Gordon, who is facing further calls this week for his resignation from Parliament.

The affair has now led Haughey to act. He gave his backing to Alexander last night, but added: "I wouldn't be happy giving any more money to the party if we don't get total transparency. I will be reluctant to give any more money to the party if we don't get some transparency into this."

The 51-year-old, whose Glasgow-based company City Refrigeration has an estimated turnover of 234m, said the rules needed to be changed so that all donations, no matter how small, were made public.

Green's 950 cheque was kept secret because all funds of less than 1,000 do not need to be currently registered.

Haughey said: "This threshold should be removed. That would take away the ambiguity."

He said that "innocent people" who had given less than 1,000 to political parties were now being made to look as if they had something to hide.

Haughey said parties should not accept money from people on the condition they remained anonymous. "People who want to give money anonymously shouldn't be giving it anyway and the parties shouldn't accept it."

But Alexander's woes continued last night as the details emerged that a Labour councillor in her own constituency is now facing a police inquiry. Williams worked alongside Alexander in the recent election campaign when he was chairman of her own local party and is thought to be a key local ally.

Tommy Williams was sacked from his job as a community support worker at Glasgow City Council last week. An investigation had centred on allegations that Williams' time-sheets had shown him at work, when he had in fact been engaged elsewhere. Williams' line manager is also believed to have lost his job following the internal investigation.

A spokesman for the council said last night: "I can confirm that two members of staff were dismissed following an investigation into allegations of financial irregularity and the matter has been referred to Strathclyde Police."

It is understood that the Labour Party will suspend Williams from the party pending a full investigation.

At his home in Paisley yesterday, Williams refused to comment.

A spokesman for the Scottish Tories said: "This is more embarrassment for the Labour Party. There seems to be systemic problems in the party wherever money is concerned."

On Haughey's decision not suspend his donations to the party, a spokesman for the SNP said: "Mr Haughey's threat to the Labour Party just exposes the internecine warfare breaking out in the party."