The Electoral Commission has launched an investigation into an illegal donation to Wendy Alexander MSP's campaign to take over from Jack McConnell as Labour leader in the Scottish Parliament, following Labour's worst electoral defeat in 50 years. The crisis unfolded when the Sunday Herald learned that every donation to the Wendy campaign was under £1,000. Many were for £950. Under the Elections Act 2000, all donations of £1,000 or more must be declared to the Electoral Commission. On November 29th, the Sunday Herald's sister daily, The Herald, discovered that Paul Green, a millionaire businessman who lives in Jersey, had donated £950 to the campaign of Charles Gordon in the Cathcart by-election for the Scottish Parliament. The by-election was brought about after the jailing of Lord Michael Watson, who set fire to a posh hotel at a Scottish political awards night. Green had a personal relationship with Charles Gordon when the latter was leader of Glasgow City Council. Green needed planning permission for a multi-million pound shopping centre in Glasgow. Green, as a non-resident of the UK and a person who cannot vote, was not allowed to donate to political parties. Charlie Gordon accepted the money nevertheless (Herald Dec 6th).

When McConnell stood down, Wendy Alexander announced immediately she wanted to be Labour's leader in Scotland. Her super-organised "Team Alexander" raised almost £17,000 and comprised a manager, treasurer, advisers and fundraisers. Charles Gordon was a fundraiser. Ultimately, there was no contest and Wendy was elected unopposed.
In a sensational development as journalists dug deeper, the Sunday Herald discovered that Paul Green had been a donor to the Alexander campaign, that 'someone' had tried to cover the facts up, and that Wendy Alexander had sent a personal letter thanking Green for his contribution.

Scottish Labour Party admits the donation was illegal. The Sunday Herald has been digging away and unearthing all the wrongdoings. Paul Green (the donor) is raging that he has been involved in the fiasco. Seems, like Abrahams with the government, he was looking for favours later on; possibly along the lines of Lord Laidlaw who has given £7 million over the last few years to the Scottish Tories in return for his peerage - but has still not fulfilled the condition that he live in the UK.

All involved blame the hapless ex-communist Charlie Gordon for soliciting the money from Green. Gordon resigned his transport spokesman position. "Team Alexander" hoped this might be an end to the matter but the SNP, as you would expect, are making hay over this spectacular own goal by the New Labour carpetbaggers and careerists. Charles Gordon now says he "mis-spoke" (Herald, Dec 6th). In the absence of any real democracy and accountability in the party, and with a weak left, the right wing has become complacent and arrogant. They are damaging the entire labour movement in Scotland. If the Electoral Commission finds the law has been broken - and nobody disputes that this is the case - the police will become involved and criminal proceedings will follow.