26 Sep 2008
The Electoral Commission announced today that the Liberal Democrats' South Thanet accounting unit has agreed to forfeit an £800 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 an impermissible donor. Parties have 30 days to check that a donor is permissible and then either accept the donation, or return it if an impermissible donor.
The £800 donation was accepted by the party in June 2008. Mr Philip Young was not on the electoral register at the time the donation was made and therefore the donation was impermissible.
The party has agreed to forfeit the donation, and therefore legal action by the Commission is not necessary.
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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. It is not retained by the Electoral Commission nor returned to the donor
