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Brown stuns MPs with call for Osborne inquiry
Joe Murphy22 Oct 2008
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GORDON Brown today astonished Westminster by demanding an official probe into George Osborne's relationship with Russian billionaire Oleg Deripaska.
"This is a very serious matter and I hope it is investigated by the authorities," said the Prime Minister, triggering uproar in the House.
His call was made during Prime Minister's Questions in a packed Commons after two days of heated claims but no hard evidence of wrongdoing. It took MPs by surprise - and caught Mr Brown's own officials on the hop: they were unable to explain at first what allegations he meant and which investigators were supposed to look into them.
Senior Labour MP Tony Wright who, as chairman of the public administration committee led investigations into the cash-for-peerages scandal, was baffled and said: "we are not talking about corruption here. we are not talking about law-breaking. what there is, as someone said, is a twerp and a massive misjudgment.
"I'm not sure which authorities Gordon thought he was talking about." David Cameron and his aides also demanded to know what Mr Brown was referring to and asked whether Peter Mandelson - who describes the oligarch as a friend - would be subject to a similar inquiry.
A Cameron aide said: "Why is Gordon Brown's office not able to say what sort of investigation he wants and by whom? And why isn't he calling an investigation into Lord Mandelson's relationship with Mr Deripaska as well?"
Mr Osborne and Lord Mandelson both met Mr Deripaska in August on his £80 million yacht moored off Corfu while guests of financier Nathaniel Rothschild. Mr Rothschild claims Mr Osborne tried to solicit a political donation to the Tories from the Russian.
Mr Deripaska, as a foreign citizen, is ineligible to give money but Mr Rothschild revealed that Mr Osborne and senior Tory fundraiser Andrew Feldman considered taking money from one of his British firms. Sir Alistair Graham, former chairman of the Committee on Standards in Public Life, said there should be a preliminary inquiry by the Electoral Commission.
He said: "I would have thought that somebody should initially look to see if it's worthy of a full investigation."
However, he doubted whether even if an offence were committed it would be possible to get the evidence to prove it in a court of law.
But this lunchtime the Electoral Commission was not launching a probe into whether there had been a breach of the Political Parties, Elections and referendums-Act. A spokesman said: "There is no offence in PPERA of soliciting a donation. Section 61(1)(b) of PPERA provides that an offence may be committed if certain specific acts are undertaken. No one has presented any evidence to the commission that an offence under section 61(1)(b) of PPERA has been committed."
Mr Brown was prompted to moot the possibility of an investigation by Labour firebrand dennis Skinner, a long-standing foe of Mr Osborne. He said: "Will the Prime Minister give us a rock-solid assurance, whatever he does in order to clear the debt of the nation's finances, he will never, ever meet a Russian billionaire to try and cadge the money. He will leave that to the sleazy Tory Party opposite."
After Mr Brown's reply, his staff were initially unable to say what sort of investigation he had in mind. But a political spokesman later said: "It is basically about the relationship he had with an impermissible foreign donor."
Asked what were Mr Brown's specific concerns, he replied: "If there were conversations about whether the donations were made to the Conservative Party, that's a serious matter."
Labour MP Denis MacShane said he believed Mr Osborne may have broken the law. He said party funding laws ban "any act in furtherance of ... or is likely to facilitate" a donation from an impermissible donor.
But former Tory party treasurer Lord Kalms said the Corfu saga was "regrettable" and "unfortunate" but "overhyped".
Mr Osborne today ruled out a court action to clear his name over the Corfu donations allegations.
The shadow chancellor backed away from a defamation action after former friend Mr Rothschild produced a witness to support his claims. Mr Feldman also made clear he would not sue, despite being accused of serious misconduct.
But the retreat left a question mark hanging over their reputations.
Reader views (29)
I have had many people tell me over the years that a certain owner of a certain famous department store in London frequently harasses the female staff. I have also worked for an owner with similar tendancies. Unfortunately their power to groom their victims through gifts and money often seduces young girls. Rarely do the girls say anyhing because these owners have lawyers protecting them, and often the girls are too embarassed. It is good that sometimes one makes it to the media. Unfortunately they can also be unreliable witnesses as too often they have accepted the gifts and harassment is hard to prove later on.
- Freddie Jones, London, 23/10/2008 09:19
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If this had been Darling on the boat, do you honestly think the Tories would not try and exploit the situation. The Tories back to what they do best 'sleeze'. Cameron will drop this guy wihin 2 weeks, just watch.
Multi millionaires in Government haven't a clue about what life is like for the rest of us.
- Peter, Manchester, England, 22/10/2008 23:04
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Of course GB will demand an enquiry. He needs a distraction from his own troubles.
- Rogan, Irving, 22/10/2008 22:32
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Obviously Gordon Brown is deflecting attention from the serious things in life - the problems he created !
Meddleson will ensure that we never find out what has really been happening in this country until he's out of it, and we're left picking up the pieces - again.
- Cap, London, 22/10/2008 22:26
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I wonder when someone will dig up photos of Gordon's American holidays with the US bankers.
- Sally, Ipswich, 22/10/2008 21:20
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Crash Gordon really has lost the plot. He has ruined this country with his poor economics.
- Jacqueline, Hampstead, London, 22/10/2008 20:55
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The most serious question regarding our Parliamentary
'Democracy' is sadistic 'Speaker' Martin's supposedly
'impartial role' in setting up Skinner's final fixed Labour Question for the ruthlessly callous Brown to land his brutally bullying 'iron fist' on the defenceless chin of the now sadistically spread-eagled Osborne.
Britain's violently lawless street culture of terrorising gangs has now so blatantly become acceptable in the grotesquely undemocratic 'Parliament' of Brown's Banana Republic.
How grotesque.
And still, for some perverse reason, 'our' main media still obsessively 'press' for a narrow majority at the next General Election!
- Dave, cumbria, 22/10/2008 20:36
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Hopefully next time George you'll remember the old saying.."what happens in Cabo...stays in Cabo!"...
- Ali Sichilongo, London, 22/10/2008 18:43
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This is Brown at his best. If he gets Osborne out, the Tories will go for Mandelson. Mandelson resigns (again) is left in the Lords, Hoon moves to Brussels (or anyone from the front bench who likes railways and gravy). A space in cabinet goes a-beggin.
Mandelson thought he was the master.
Game,set and match to Gordy.
- Michael Murphy, Brightlingsea England, 22/10/2008 18:41
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Dennis Skinner? I thought he was dead.
- Peter Haldane, London, 22/10/2008 18:35
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A diversionary rap over the knuckles designed to warn off any young whipper-snapper who dares to attempt to smear Mandelson, I'll wager. What else in such a climate, when bad news has to be buried daily and the party lies so low in the polls?
The British public will have little respect for well-heeled grandees who engineer headlines to exact revenge on rivals when many are in danger of losing jobs, homes, and a hard-earned standard of living.
Although we don't want this tired, unpopular government, members should learn to rule with some dignity and try to earn respect through leadership, not by showing just how spiteful and underhand they can be. Take heed, Gordon.
- Disgusted, Nottingham, UK, 22/10/2008 18:15
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Does anyone care?
I would prefer the government concentrated on more pressing matters, like sorting out this mess they have got us into. Who cares whether George Osborne was on a boat in Corfu with some Russian groover, good for him. At the end of the day the Tories did not receive any money, thus end of story. Stinks of Brown trying to move the spotlight off his inadequacies. I think the electorate are more intelligent than Browns takes us for.
Mandy has been back in politics for a few days and already we have sleaze!
- Jb, London, 22/10/2008 17:30
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Not even Blair sank as low as this current Labour government.
- Delphine, Oxford, 22/10/2008 16:56
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Thought the PMs priority was the economy not who said what to who. Oh well, we know how he and his pals like grabbing at alternative gossip straws and for why!
- Tony Islander, Herts, 22/10/2008 16:28
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What about the unemployed?
What about those who have lost their homes?
Those who have lost life savings?
This is obviously a cynical diversion diversion by Brown to divert
attention from the real issues.
- Michael Corby, London UK, 22/10/2008 16:28
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What surprised me was that the Speaker decide to call Skinner and that the PM had what sounded like a prepared answer. Certainly helped take the spotlight off things that matter to the rest of us.
- Dave, London England, 22/10/2008 16:24
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Joseph from the Hell hole of Thornton Heath,have you not read,or listened to the reports? or do you not take notice of facts,Osbourne decided to open his mouth ( before thinking)in an effort to get at Mandelson,but his utterings came back and bit him,I would not give a 1p coin for either of them,I just hope you are never called to undertake Jury service.
- Raymond, Stoke on Trent, 22/10/2008 16:13
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I agree it's a storm in a teacup. If it is legal to accept donations from a British trading company, including one owned by a foreigner, then even if George Osborne did solicit a donation he would not have done anything wrong. As it was, there was no donation so it is a moot point. I think Brown blundered, I don't think for a moment he was calling for an inquiry, as that will land Lord Mandelson in it. Osborne was with old friends, what was Mandelson doing there?
- Tom Moncrieff, london W6, 22/10/2008 16:04
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This is another storm in another tea cup which our Zero to Hero and back to Zero prime minister is trying to use to deflect from his own inadequacies. He should get on with the economy which he has had hand in messing up. If by any chance what the labour party minions are saying about the shadow chancellor is true George Osborne should resign but if it cannot be proved his accusers should themselves resign for bringing themselves into disrepute.
Lyndon B Johnson said accuse your neighbour of something bad and watch him try to deny it. I feel this is what here.
- Alexis Dogilewski, London, England., 22/10/2008 14:55
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When it comes to alleged donations to any political Party just pass it on to the police straight away for an investigation and that'll make it sub judice. Then, the Nation can get on with talking about more important things instead.
- Dhanraj, Basildon, Essex., 22/10/2008 14:53
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"Mandy" is back and what slime do we see coincidentally in the press to make us all believe we are not in an economic recession nor are we saving so little nor fearing for our jobs? Firstly we have the mud-slinging at George Osborne while of course we have the The Guardian national newspaper reporter highlighting the atheist campaign where we will see posters on London buses. All smoke and mirrors in an attempt to take our minds off our broken society and our broken economy.
Labour are trash and no matter what trash Mandy and co encourage, Labour 1997 till 2010 will still be seen and remembered as the worst British Government in living memory if not history. They have broken British society and now they have broken the British economy - I could think of a few Labour things that need breaking!
- Joseph, Thornton Heath, London, UK, 22/10/2008 13:58
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Never mind 'follow the money' (there is none); I say "cherche la femme" or in this case, the Princess of Darkness.
- Beatriz, London, 22/10/2008 13:56
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So let me get this straight. As a politician, I'm at a party or on a yacht belonging to some foreign billionaire and I get into a conversation about a hypothetical situation which cannot possibly happen for amongst other things, legal reasons. Next day I find myself splashed across the news papers because, well let's say that the guy I was talking to is big buddies with a member of the opposite party who sees an opportunity. Even though nothing happened and no money changes hands, the incident - or chat - is blown out of all proportion so that the opposite party can score election points. And there you have it.
- John, Chichester, UK, 22/10/2008 13:43
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Surprise, surprise, more Labour dirty tricks at work, and yet again Peter Mandelson is in the group. How low can Labour go!
- Anon, UK., 22/10/2008 13:43
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This seems ridiculous to me. They did not solicit money and they did not accept money, so what is the problem? Whether there was a conversation or not becomes completely irrelevant if ultimately they did the right thing. Give them a break and let's let politicians spend their time on developing economic policies and regulation that we so desperately need at the moment.
- Kate, London, 22/10/2008 13:29
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Surely if he were innocent he would not be so shy of a defamation writ, considering how damaging this is to not only him but the Conservative Party as a whole. That's what the defamation laws are for, to protect the wrongly accused and damaged. Obviously quite a lot else would have to come out at the same time as well. They have obviously weighed up the options carefully and decided to hide under the bed till it goes away.
- Jilly, London, England, 22/10/2008 13:21
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Dave should have been aware of what George and the party chief fund raiser were up to or may be he was.
- Mike Melbourne, Bedford England, 22/10/2008 12:23
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What's the fuss? He's done nothing wrong & no money was received. This looks like a storm in a teacup.
- Roger Slade, Winchester, Hampshire, England, 22/10/2008 11:52
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I think it is time for Osbourne to go and Cameron should follow.
- Jim Green, Peterborough, England, 22/10/2008 11:23
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