Alan Johnson has agreed to forfeit the money
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Health Secretary Alan Johnson has been ordered to pay a donation of £1,675, which he received last August, into public funds.
The Electoral Commission say the gift is impermissible because the donor, Mirza Beg, was not registered to vote at the time.
The commission says it was a genuine oversight on Mr Johnson's part.
The minister raised thousands of pounds last year to fund his unsuccessful deputy Labour leadership campaign.
There was no intention to break the rules, the electoral watchdog said, adding it was an inadvertent "oversight".
However, Mr Johnson must pay £1,675 into the Treasury's consolidated fund.
This means Mr Johnson will effectively have to refund the money twice - he returned the donation of his own accord to Mr Beg last December when he realised that it broke the rules.
Under the requirements of the Political Parties Elections and Referendums Act, any impermissible donations not returned to the donor within 30 days must be forfeited to the Treasury.
If the donation is returned to the donor after the 30 day period - as it was in this case - it must still be paid to the Treasury.
Politicians can only accept money from donors who are registered to vote at the time the donation is made. Mr Beg was not on the electoral role when the money changed hands in August.
The Electoral Commission said Mr Johnson had agreed to forfeit the money so they will not be taking legal action.
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