Tuesday, December 04, 2007

Is the Labour party solvent ?

Just reading The Mole's post over on The First Post and I'm wondering why Brown is willing ( or saying he's willing ) to compromise on Union funding. Its not like him - even if he needs good publicity.

Having announced his intention of repaying at least £600k - it could be more and the electoral commission may insist on its being done, and with the Labour party owing about £20million I'm wondering if the Labour party is actually solvent.

As a director of a company you ahve to ensure that the company does not attempt to trade once you know its insolvent ( you'll find yourself in court if you don't and the I didn't mean it excuse being used by senior Labour party officials doesn't cut any ice for normal citizens ).

So what sort of body is the Labour party ? A company ? I assume it can't be a charity. A brief glance at the electoral commission made me none the wiser - there seemed to be 'accountancy units' made up of the CLPs.

Is it trading when it knows its insolvent ?

2 comments:

carol42 said...

I understand that this money has not yet been paid back. To whom will it be paid? to the people who knowingly laundered it through their bank account? to those whose identity was used, seeemingly without their knowledge,? or to the original doner? As money laundering and identity theft are crimes this seems odd, surely the money should be forfeit. I would be interested if anyone knows the answers, and what about interest? the Labour Party has benefitted from illegal contributions and that surely cannot be right.

Man in a Shed said...

carol42 - I suspect the Electoral commission will seek to confiscate the money - which will then be used by the government ( but not the Labour party ).