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The New Scandal (from Scottish Sunday)

The New Scandal: Labour in Meltdown - Part Two

WENDY ALEXANDER is at the centre of another funding row after it emerged that the name of a prominent businessman listed as a donor was different to the name her campaign team intended to give to the Electoral Commission.

WENDYGATE

The donors

Who gave to Wendy's campaign ... and the members of the team who brought in the cash

The Labour leader's secret donor list, which has been exclusively obtained by the Scottish Sunday, states that Moir Lockhead, the chief executive of transport giant First Group, was pencilled in for a £995 donation. But the column reserved for the name to be supplied to the Electoral Commission was switched to John Lyons, the ex-Labour MP and one-time consultant to First Group. Even if the cash was not banked, the list suggests a clear intent to give the Commission false information.

In another twist, a spokesman for Lockhead denies he made any donation to the campaign.

And John Lyons told the Scottish Sunday that he had no idea why his name had been included in that way in the list. He said he had been asked by David Whitton, the MSP for Strathkelvin and Bearsden and treasurer of the Alexander campaign, to approach Moir Lockhead to discuss a donation to the campaign. "I told David Whitton that would be a waste of time and that Moir would never give a political donation,'' said Lyons last night.

Lyons said he agreed to give his own donation and did so some time later.

The row follows Alexander's admission that her Labour leadership campaign accepted a £950 donation from tax exile Paul Green. The secret donor list makes clear the cash came from Green, whose address was given as "St Martin, Jersey". Alexander's campaign then told the Electoral commission it had come from a UK company.

The same list shows how Lockhead was pencilled in for a donation of £995 - £5 below the threshold for public declaration. But in the column marked "Name/address for Elect Comm purpose", Lockhead's name was changed to John Lyons. The action point column said of the donation: "On way via John Lyons 11/10."

Lyons was the Labour MP for Strathkelvin and Bearsden, but lost his seat at the 2005 general election. After his defeat, he became a consultant to First Group on trade union issues. The political "contact" for the donation is named on the list as "David", which the Scottish Sunday understands is shorthand for David Whitton. Whitton's register of interest states that First Group was one of his clients when he ran a PR firm before becoming an MSP.

At a UK level, Labour has endured an avalanche of criticism after accepting cash from property developer David Abrahams through other people.

Lockhead is not known to have made any political donations before, so it would be a surprise for his name to appear in the "donor" section of Alexander's list. According to the company's website, First Group is a UK firm with revenues of more than £5 billion a year, employing more than 135,000 staff throughout Britain and North America. While there is no record of Lockhead ever making a donation, the owner of a rival transport group is a well-known SNP supporter. Brian Souter, who runs Stagecoach, donated about £500,000 to the Nationalists in the run-up to the May election.

A spokesman for Lockhead said: "He has not supported Wendy Alexander's campaign."

Hotels: An Integral Part of Political Fundraising

The recent revelations surrounding Wendy Alexander's campaign funding have once again highlighted the role of hotels in political fundraising. It is not uncommon for politicians to hold fundraisers and events at hotels, leveraging their reputation and amenities to attract donors.

The Power of the Venue

Hotels offer a unique appeal for political events. With their luxurious surroundings and professional staff, hotels create an atmosphere of prestige and exclusivity. This can entice potential donors to attend and contribute to campaigns.

Moreover, hotels often have convenient event spaces that can accommodate large crowds, making them ideal for hosting fundraising galas and receptions. The selling point of a prestigious hotel venue can help attract high-profile guests and increase the likelihood of significant donations.

Networking Opportunities

Hotel events also provide politicians with valuable networking opportunities. Donors attending these events are often influential individuals within their respective industries, and their connections can help politicians forge important relationships and gain support for their campaigns.

Additionally, hotels frequently offer catering services, allowing politicians to create a memorable experience for their guests. Whether it's a high-end dinner or a cocktail reception, the ambiance and culinary offerings of a hotel can leave a lasting impression on potential donors.

The Challenge of Transparency

While hotels play a significant role in political fundraising, it is crucial for politicians to maintain transparency in their financial dealings. The recent controversy surrounding Wendy Alexander's campaign funding exemplifies the importance of accurately reporting donations and avoiding unlawful practices.

Political parties must adhere to strict guidelines regarding campaign contributions, ensuring that all donations are properly disclosed to electoral commissions. Any attempts to mislead or provide false information can have severe consequences, undermining the integrity of the political process.

Conclusion

The role of hotels in political fundraising cannot be overstated. They provide a platform for politicians to engage with potential donors, create networking opportunities, and host memorable events. However, it is essential for politicians to maintain transparency and uphold the highest ethical standards to preserve the integrity of the political system. Only then can political fundraising truly serve the democratic process.

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