Labour on rack as more parties fail to register funding

THE Labour accounting scandal that has engulfed Jack McConnell’s local party spread across Scotland last night after it emerged that dozens of other constituency parties had almost certainly failed to declare cash donations from trade unions.

Constituency parties are required by law to register financial donations with the Electoral Commission, but Labour insiders revealed last night that as many as half of Labour’s local parties may not have done so.

This would represent a serious breach of electoral law and would put immense pressure on Mr McConnell, as Labour leader in Scotland, and Lesley Quinn, the party’s general secretary north of the Border, who will be blamed for the fiasco.

But the problems for Mr McConnell increased when it became clear that there was almost total panic and confusion in Labour headquarters in Glasgow over the extent of the accounting crisis.

One source said it was impossible for anyone to find out what was going on because everything was organised by the local treasurers and London headquarters.

Another Labour source said he simply did not know how many local parties had broken the law . But he admitted it might be dozens.

Mr McConnell has faced intense criticism over the problems in his Motherwell and Wishaw party, where an investigation has been launched into claims that thousands of pounds have gone missing.

It then emerged that the Motherwell and Wishaw party had also failed to declare to the Electoral Commission an annual contribution of 1,500 from the ISTC union.

The Falkirk West constituency party was next to fall under the spotlight, also because of a 1,500 donation, this time from Unison.

The party did not declare the donation, provoking demands from opposition parties to know exactly how many local Labour parties had broken the rules.

A spokesman for the Labour Party admitted that several may have failed to declare donations.

He said: "The responsibility for declaring donations lies with the local treasurer. Despite the fact that we regularly issue guidance, we cannot rule out the possibility that some local treasurers may not have met their obligations."

Ironically for Mr McConnell, it was his attempt to shut down the story two nights ago that has prompted these new disclosures.

The First Minister appeared on television to insist that the party would do everything possible to sort out the accounting problems and he turned on local treasurers, saying many of them would be "hurriedly checking their books" to find out whether any mistakes had been made.

John Swinney, the Scottish National Party leader, said: "Jack McConnell’s wrongdoing, and his attempt to cover up his wrongdoing, has led to an expos of wrong-doing in the Labour Party across Scotland."

And David McLetchie, the Tory leader, added: "This whole crisis is of Labour’s making and is down to Labour’s mishandling. Every day it deepens. Every day it brings more unanswered questions. They have got to sort this out."