Tonight:
9°c
Watchdog to probe Saudi gift to Straw
Paul Waugh05.03.09
Election watchdogs have started an investigation into a Saudi-backed donation to Justice Secretary Jack Straw.
The Electoral Commission has told Tory MP Ben Wallace that it will look into a £2,000 gift to Mr Straw's Blackburn local Labour party.
The inquiry follows revelations in the Evening Standard last month that the gift to his 2005 general election campaign may have breached the law.
The money came from Westminster International Consultants but one of the founding partners of the consultancy has said that it did no business in the UK.
Under electoral law, donations are permissible only if a firm or partnership can show that it "carries on business" in this country.
WIC appears to have been run by Siraj Karbhari, a former Labour councillor in Blackburn with financial interests in the Saudi property industry.
Mr Karbhari operated out of a sub-post office in Chingford and an address in the City of London.
WIC was active in 2005 and 2006, but its accounts show tiny outgoings.
Its wage bill at the time it made the £2,000 donation was just under £8,000.
Mr Karbhari today said he had made the donation as an individual, but refused to say whether the consultancy had carried on business in the UK.
Speaking from Saudi Arabia, he said: "I am a UK citizen and this was not a foreign donation. I made a cheque from one of my companies. I can't recollect which chequebook I used. If they have listed a donation from Westminster, that is a mistake."
Dr Yusuf Karbhari, the founding partner of the firm, denied it had made any such gift and said his brother Siraj had made the donation as an individual.
He added: "[WIC] didn't carry out any business in the UK. It was doing a few things outside Mainly, it was in Saudi Arabia."
Electoral Commission registers show that the Blackburn constituency Labour party received the cash on 1 April 2005. Mr Straw also listed the donation from "Mr Siraj Karbhari, Westminster International Consultants" in the MPs' register of interests.
The only other founding partner for the WIC was Saudi property company Emaar Al-Bayadir for Development and Trading Co Ltd.
There was confusion among MPs today about whether the Speaker is going to look into archaic Parliamentary language such as "Honourable Gentleman". Deputy Leader of the House Chris Bryant said it was something that need to be reviewed but it was ultimately upto the Speaker, Some MPs then heard Michael Martin then say "It's something we will be looking at". But others thought he said "It's something we won't (ital) be looking at". Enquiries are being made.
The backbench Labour rebellion on the Royal Mail has garnered two important new recruits. Sian James, PPS to Trade minister Gareth Thomas, has signed the EDM opposing the partial sell-off. MPs are wondering if Mr Thomas' boss Lord Mandelson is amused. Meanwhile, Yvette Cooper's PPS John Robertson has also joined the 142 rebels.
