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Wednesday, 24 November, 1999, 13:22 GMT
Tory donation row turns nasty
Senior Conservatives have clashed with the prime minister after fresh controversy over donations received by the Tories from their overseas treasurer. Tories rejected allegations of wrongdoing in accepting annual donations of £1m from Michael Ashcroft through his Belize Bank Trust and continued to blame "dirty tricks". But Tony Blair dismissed the suggestion of Labour Party involvement in a "Watergate-style conspiracy" as "hysterical ranting".
A spokesman for Mr Ashcroft told the BBC he is registered as an overseas voter in the Maidenhead constituency, making him eligible to contribute to political parties. The Conservatives are demanding a police inquiry into information first published in The Times showing the treasurer's money was channelled through an overseas trust. They insist the latest details could only have been obtained by hacking into the party's bank accounts. A billionaire businessman and the Tories' largest single donor, Mr Ashcroft remains a powerful but enigmatic figure within the party. He holds joint UK and Belize nationality and spends much of his time in Central America, where he is the ambassador to the United Nations for the state. The treasurer is currently suing The Times over other allegations it published previously regarding his business interests.
The prime minister's official spokesman branded the move "desperate" and brought by "people with a desperate lack of judgement". But Tory vice chairman Tim Collins said: "There is a very serious issue here about people inside the Labour Party and outside it who are determined to destroy Michael Ashcroft because he has committed the sin of contributing money to the party that is standing up against Tony Blair and his government." He denied his party was simply desperate to divert attention from the substance of the claims raised against its treasurer and compared the situation to Watergate. "The smokescreen is that The Times is in the middle of a bitterly contested legal battle with Michael Ashcroft at the moment and are absolutely desperate to do anything they can to blacken his reputation," he said. The spokesman for Mr Ashcroft's said the coverage was "perplexing" as the treasurer had already disclosed his intention to donate £1m to the party this year.
He branded comments by the Tory chairman alleging "dirty tricks" as an "extraordinary outburst" and suggested the strain of the past few days had started to show. Labour challenged the Tories to provide evidence before insinuating any involvement in the episode by the party. Cabinet Office minister Mo Mowlam is writing to the Tory leader in protest. "I can't hack into my own computer, let alone anybody else's," a party spokesman added. The latest storm follows a long-running row about party funding in general and particularly donations from Mr Ashcroft, the Conservative's biggest single donor. Lord Neill's Committee on Standards in Public Life earlier this year recommended a ban on all overseas funding of political parties. Legislation outlawing foreign trust donations is expected to be approved by Parliament within the coming year. |
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