Wendy Alexander Reported To Police Over Donations Scandal

Feb 3 2008 By Raymond Hainey

Labour Leader In Pressure To Quit Over Cash Scandal

SCOTTISH Labour chief Wendy Alexander has been reported to the procurator fiscal over dodgy donations to her leadership campaign.

The threat of criminal charges heaps pressure on her to quit as party leader at Holyrood although she insists she has done nothing wrong.

Standards Commissioner Dr Jim Dyer reported Alexander to the fiscal in Edinburgh on Friday after deciding there was evidence she had broken the rules on declaring gifts.

She now faces a police probe as she awaits the verdict of the Electoral Commission's investigation into her campaign team's acceptance of an illegal s950 donation from Jerseybased tycoon Paul Green.

Dr Dyer has already told Alexander that any donations over s520 should have been registered as gifts.

The report to the fiscal is a devastating blow to Alexander's hopes of clinging to the party leadership she took on just four months ago.

But the man tipped as her successor - former health minister Andy Kerr - also faces a police probe.

He failed to declare s1000 worth of hospitality from burger chain McDonald's last year.

Last month Peter Hain was forced to quit asWork and Pensions Secretary after a police probe was announced into funding of his failed campaign for Labour's deputy leadership.

Political rivals were quick to heap pressure on the Scottish Labour leader.

An SNP spokesman said: "This is an extremely serious development.

Wendy Alexander's position is getting more and more untenable by the day.

"It's now essential that Electoral Commission also comes forward with their conclusions as soon as possible.

"It's very hard to see how they could do anything other than make a referral to the police."

Alexander's team remained tight-lipped over the legal probe but it is understood that her closest allies will urge her to fight her corner and hang on to the leadership.

MSP Jackie Baillie, a close ally, said: "If the Electoral Commission judge that there has been intentional wrongdoing by either Wendy or one of her campaign team, I would have thought she had even more reason to stay on and fight for her reputation."

It also emerged yesterday that Alexander's campaign team made a false declaration about the source of the illegal donation from Green.

They claimed that the s950 had been handed over "under the auspices" of a Glasgow firm Green was involved in but it later emerged it had come from his Jersey base.

MSP Charlie Gordon, who arranged the donation, was forced to resign as Labour's transport spokesman after the news broke.

The Crown Office said last night: "We can confirm the Lothian and Borders area procurator fiscal has received a report and that is being considered."

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