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http://www.guardian.co.uk/politics/2008/may/29/labour
Senior officials in the Labour party, including Gordon Brown, could become personally liable for millions of pounds in debt unless new donors can be found within weeks, the Guardian has learned.
The party has five weeks to find £7.45m to pay off loans to banks and wealthy donors recruited by Lord Levy, Tony Blair's former chief fundraiser, or become insolvent. A further £6.2m will have to be repaid by Christmas - making £13.65m in all. The sum amounts to two-thirds of the party's annual income from donations.
The figures are a conservative estimate as they do not include interest that will also have to be paid. A Labour source said that although the total debt was listed as £17.8m on the Electoral Commission website, the true level, with interest, was nearer to £24m.
The possibility that party officials and members of its national executive committee could become liable is being taken seriously by union leaders, and has been underlined by the decision of equity fund chairman David Pitt-Watson not to accept the post as Labour's general secretary............more via the link.
More on Mr Pitts-Watson here.....
http://www.labourhome.org/story/2008/4/7/7324/42400
Tribune today has a dramatic article about Labour Party attempts to reschedule up to £14 million of loans, and that NEC members could be personally liable for the debts if legal action is taken. Apparently a last resort of converting the party into a limited company is being considered by some, to protect the NEC members from liability!
The article claims "Some of [the 12 large providers of loans] are apparently spitting blood and all of them are pissed off", and there have been acrimonious rows with donors who want their cash returned. Total borrowings stand at about £20 million. The latest public donation numbers are for 2007 Q3, when about £4.7 million of donations were taken (including £2 million from Lord Sainsbury, possibly a conversion of his £2m loan)......more via the link
http://www.labourhome.org/story/2008/1/25/14355/0024
We live in interesting times !
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RichC
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