20 Jul 2007
The Electoral Commission announced today that the Conservative Party has agreed to forfeit a £25,000 impermissible donation.
Under Section 54(1) of the Political Parties, Elections and Referendums Act 2000 (PPERA), registered political parties must not accept a donation from a person who, at the time the donation was made, was an impermissible donor. Parties have 30 days from the date the donation was received to return the money to the donor.
The £25,000 donation from Mr Gareth Lake was accepted by the party on 25 January 2007. But the Commission identified that the donor was not on the electoral register at the time the donation was made. The Commission has accepted that this was an oversight by the party and there was no intention to break the rules.
The party has agreed to forfeit the donation, and therefore legal action by the Commission is not necessary.
A spokesman for the Commission said:
"While we have concluded that the acceptance of the donation by the Conservatives was the result of an administrative error, the rules on donations are clear and it's important that they are followed. We are pleased that the party has agreed to forfeit the money without the need for legal proceedings."
Ends
Notes to Editors
1. The Political Parties Elections and Referendums Act (PPERA) 2000 established the Electoral Commission as an independent body to regulate political party financing and provided the legal framework under which the Commission operates.
2. Section 54(2) of PPERA defines permissible donors to registered political parties as:
- an individual registered on a UK electoral register
- a UK registered political party
- a UK registered company
- a UK registered trade union
- a UK registered building society
- a UK registered limited liability partnership
- a UK registered friendly/building society
- a UK based unincorporated association
These requirements must be satisfied at the time the donation is made and the onus is on the party to check whether this is the case and return the money if necessary.
3. Under section 58 of PPERA, the Electoral Commission has the power to apply to the courts for an order to forfeit a sum equal to any impermissible donation a party has accepted and not returned within the statutory 30 days.
4. Any amount forfeited is paid into the Consolidated Fund.
