Wendy Alexander's campaign for the Scottish Labour leadership broke the law by accepting money from a Jersey-based businessman, it has emerged.
Her campaign manager, Tom McCabe, accepted there was a clear breach of donation rules when a cheque for £950 was accepted from developer Paul Green.
The MSP who sought the donation, Charlie Gordon, has quit as Labour's transport spokesman at Holyrood and the matter has been reported to the Electoral Commission.
Here is the statement issued by Mr Green, a long-time Labour supporter.
I refer to the recent press articles about a political donation made by me to the Scottish Labour Party. I also refer to the statement made on 29 November 2007 by Charles Gordon MSP about the matter.
I welcome Mr Gordon's statement. However, I wish to clarify the position further.
In August of this year I was asked by Mr Gordon to donate £950 to Wendy Alexander's campaign to become leader of the Scottish Labour Party.
I asked Mr Gordon if this complied with the Electoral Commission Rules and was told that it did.
Relying on that confirmation I made the donation from my personal account.
I have the greatest respect for Mr Gordon, who was an excellent leader of Glasgow City Council.
It is well known that I openly support the policies of the Scottish Labour Party in the continuing regeneration of Glasgow.
It is my opinion that the Labour administration in Glasgow has, and continues to do a good job in regenerating the city and promoting its vitality.
There is mention in the press of Combined Property Services Limited who do work for our companies. Combined Property Services Limited is a completely independent company.
Combined Property Services Limited would have no reason to be aware of this small donation which was made by me personally, openly and in good faith.