Monday, December 03, 2007 

Hubris, carelessness and the second death.

Depending on who you believe, Alastair Campbell had a formula concerning the life of a scandal and whether those embroiled within it could survive in their jobs. Again, depending on who you believe, Campbell decided that most could carry on if by either the tenth or fourteenth day since it was first exposed the coverage had almost disappeared. We're now a week and a day into the Abrahams funding scandal, and it shows no signs whatsoever of being about to drop off the front pages.

The Brown camp must have been dreading the Sundays, where the weekly hacks had far more time than their daily counterparts to uncover further intricacies of Labour's dubious funding over the past few years. Things could have been a lot worse, one would think, even though the Mail on Sunday splashed on how Mahmoud Khayami donated to the party a whole day after he been entered on the electoral register, and Abrahams, who seems to be doing his best to be mischievous, noted that there are more senior figures within the party who knew that he was the source of the money coming from at least four different fronts. The situation has also been helped slightly by the whole Gillian Gibbons affair, although the embarrassment that David Miliband himself wasn't able to garner her early release while two Lords were able to might yet bite too. If politics hadn't become so separated in Scotland and England, the scandal which has also engulfed Wendy Alexander, the Scottish Labour leader, best summed up by Mr Eugenides, would also have hit far harder than it has south of the border.

The one thing that is still beyond belief is that Labour had the best part of two whole days to get its entire story about what happened completely straight, yet it failed comprehensively. The first they heard of what was going to be in the Mail on Sunday was on Saturday evening, and according to Patrick Wintour's Grauniad account it wasn't seen as too serious, but the involvement and resignation of Peter Watt still should have brought home just how damaging the fallout from the latest breach of party funding law was going to be. Yet even by Brown's press conference on Tuesday morning the full account of what occurred had not been constructed, nor has it even been now. To best disarm the ensuing storm, what should have been put into the public domain was a narrative of what had happened, how the party had got it wrong and how it was going to be put right. At the very best it can be said that Labour was leaving the details out so that Lord Whitty could establish them, while at worst the party was and is being blatantly dishonest, a view I more than lean towards.

For instance, how did a man such as Peter Hain just completely forget to register a donation (or indeed, most of his donations, as it now turns out) from none other than Jon Mendelsohn towards his deputy leadership campaign? The inference must be that it was a very convenient transgression. This itself distracts from the real question, which ought to by why and how some of the candidates thought it was necessary to raise such vast sums, in Hain's case £77,000, for what was an internal leadership campaign. Even more startling is that Harriet Harman, the eventual winner, was to hold a Christmas party a final fundraiser this Wednesday to cover the full costs of her campaign, having overspent by a huge margin, despite being told to go begging to Janet Kidd, one of Abrahams' fronts by Chris Leslie, the man who had rejected a donation from the very same Kidd in his role as Brown's leadership campaign co-ordinator.

Brown's last resort to try to regain the initiative has been to dangle the carrot to the Tories of severing the link with the unions once and for all. Perhaps the only major surprise is that it has taken both this long to happen and that the unions have put up with Labour for so many years, through so many broken promises whilst still funding the party up to the hilt. The details of how the political levy will be made "transparent" in Brown's words are unclear: will this mean a limit of £50,000 a year or every member being required to OK the money donated by the union? If it's the former, it will mark the final, full transition of Labour from the party representing the ordinary worker to that of one totally funded by the same corporate, rich individuals as the Tories. This occurred long ago in policy, but the death of Labour in spirit in exchange for the dishonesty of its apparatchiks is fitting, if only as a reminder of the last ten years.

As both Dave and Chris have said, this wasn't supposed to happen, but this can't purely be blamed on the Blair era. Brown might not have known about the donations, but he did appoint Mendelsohn who will famously be known for being "concerned" about Abrahams' funding, but not enough to do anything about it prior to the story being exposed. He has completely failed to make good on his promise for "change" while the mendacity of Blair was never punctured. We do need as Chris argues the resurrection of mass politics, but who with? Labour has never been more of a busted flush. Do we help build the Greens or go somewhere else? Fact is, we simply don't know, and what's more, we won't. Being disaffected is much easier than starting again.

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Wednesday, November 28, 2007 

Mendelsohn becomes Mandelson.

If Gordon Brown has ever looked as impotent as he did at today's prime ministers questions, it was a long time ago. Faced with the barracking from David Cameron and the Tory benches, he employed the Tony Blair defense: say as little as possible in response to what the opposition leader is actually questioning you about, then go on the attack about all their shortcomings from the dawn of time. It made for exasperating viewing, but it got Blair through similar showdowns relatively unscathed. For Brown it simply didn't work: the Tories scented blood, and while one side of the Commons fell about laughing at Vince Cable's relatively weak joke about the prime minister going from Stalin to Mr Bean in record time, the Labour benches were united in gloom.

We then again face the prospect of a police inquiry, and also presumably the possibility of the prime minister's chief fundraiser feeling the long arm of the law in a similar redux. Newsnight couldn't have believed its luck at David Abrahams phoning the BBC minutes after Geoff "Buff" Hoon had denied that Jon Mendelsohn had any knowledge about his donations; Abrahams contradicting his claims and reading out a letter from the very same Jon Mendelsohn he had received earlier in the day that, if anything, suggested he wished to meet Abrahams with a view to further donations was dynamite. Mendelsohn's attempt at an explanation today only raises as many questions as it answers: if Watt had told Mendelsohn about the donations, why didn't he raise the alarm about their illegality instead of meekly accepting Watt's "belief" that they were above board when he apparently wasn't happy about the situation? When was Mendelsohn told? (Newsnight just said it was late September.) Why does the letter, if it was written with an eye to meeting Abrahams and explaining that the system he had set-up was inappropriate, not to say illegal, was it not completely open about that being the reason for the tete-a-tete? Why is there a discrepancy between Abrahams claiming the letter is handwritten and dated 24th of November when Mendelsohn said it was typed and dated the 22nd?

Jack Dromey's position as the Labour party treasurer is looking similarly questionable. Some Blairites, embittered that Dromey made clear he had been bypassed over the loans for peerages scandal and put Blair in the soup, asked whether he ought to have been more questioning in his dealings rather than performing a reprise of Manuel. That now looks more reasonable as once again Dromey is left stating that the donations were "completely concealed". His role seems to extend to looking at the accounts as placed in front of him, signing them off, and err, that's it. Being married to Harriet Harman, performing a similar act after accepting a hidden donation from Abrahams while Brown and Benn had the sense to inquire into the background behind it only strengthens the sentiment that it's time he went.

Unity to an extent tries to put the case for Labour over at Liberal Conspiracy, pointing out that the Tories had recent similar problems with the Midlands Industrial Council being used as a front for donations, and it's also true that the Lib Dems' biggest donor to date is currently in prison for perjury, while even UKIP had to recently forfeit a donation when it turned out the donor had inadvertently been removed from the electoral register, but the there's a "pox on all their houses" argument doesn't really cut it any longer, especially when it's Labour that brought in the current rules which have been so flagrantly breached. As the Guardian leader puts it, "What bit of doing things by the rules does the Labour party not understand?" If there is to be a police investigation, quite apart from the increasing political damage, then Labour has no one but itself to blame.

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Tuesday, November 27, 2007 

Abrahams sacrifices Labour.

To misquote Lady Bracknell, to get caught out over improper donations once is unfortunate, to get caught twice seems like carelessness. To be strictly accurate, it isn't even the second time the Labour party has been caught out: it's more like the fourth, coming after the Ecclestone and Mittal affairs in the earlier days of Blair's reign. Gordon Brown and the government at large must be wondering what on earth is going to go tits up next: perhaps Ruth Kelly will be exposed as having a second life as this generation's Miss Whiplash?

More damaging than the accusations and the returning of the money to David Abrahams might well be the very bringing back of the sobriquet "sleaze", especially screaming out from the front page of the Daily Mail, the paper that Brown has done so much to attempt to woo. If Blair's position prior to the whole loans for peerages debacle was highly damaged, the impact of the police investigation was terminal. Brown's attempt to draw a line under all of that through his widely parodied "Age of Change" has hit the buffers even sooner than after Peter Mandelson commented that New Labour was "intensely relaxed about people getting filthy rich."

As so often with this government, when it gets caught out it acts like a child caught with his hands in his mother's purse, except not many children would then appoint a Lord to investigate what actually led up to the shutting of fingers in the clasp. No one, it would seem, apart from Peter Watt and perhaps his predecessors as general secretary of the Labour party knew that Abrahams was donating money through up to four intermediaries, even though both Gordon Brown himself and Hilary Benn declined to receive donations from Janet Kidd for their respective campaigns for leader and deputy leader, having inquired into her background as she wasn't known to either. Benn subsequently did accept a donation from Abrahams once he personally signed the cheque, but Harriet Harman wasn't as inquisitive, accepting a donation for £5,000 at face value. Her position really ought to be untenable, especially if the Tories are correct in alleging she didn't actually take it until 2 weeks after the campaign had ended.

In fairness to Brown, he did all that could reasonably be expected of him at this morning's press conference. He apologised, admitted that the donations were unlawful and that they would be returned, said that he might well have met Abrahams at some point, although he "couldn't remember" talking about donations at any of those meetings and that changes would be needed. Thing is, we've heard it all before over so many other matters. The talks about changes to the party funding regime have been mooted on previous occasions, and the most recent attempt failed after the Tories attempted to cut the links between Labour and the unions, with all the other matters also falling by the wayside. When the Tories have Lord Ashcroft pouring money into the marginal constituencies, even though he himself has questions to answer about his tax status (Private Eye in the latest issue suggested he might be one of an increasing number of businessmen who in effect pay no tax whatsoever thanks to their offshore interests) they have much to gain and little to lose from the collapse of the talks, especially when the right-wing press has such a loathing of Labour's union links.

Doubtless, numerous hacks will now be scrutinising David Abrahams' movements over the last few years. His explanation that he passed his donations through others so that he wouldn't be treated like a criminal for donating to a political party would stand up rather more if he hadn't in the words of Nick Robinson "used different names, different ages, been deselected as a parliamentary candidate and been involved in rows about the planning system." The one saving grace for Labour is that so far there has been no evidence presented to suggest that Abrahams has personally gained from his donations; unlike with cash for peerages, where it was always incredulous that all those that had given secret loans had been been recommended for peerages and that the two things weren't connected, this at the moment appears to be a general secretary taking the money and not asking any questions. Where it will change into serious sleaze is if it turns out that there was far wider recognition of where the donations really were coming from - and at the moment the photograph of Blair at his constituency with Abrahams in close proxomity is the nearest thing to a smoking gun. If a similar photograph of Brown turns up, despite his admittance that he might of met him, then it will become very serious indeed.

The most astonishing thing is that it's been allowed to happen. At what point does a breaking of the law, even if we believe Watt's story that he simply didn't check, become less serious than another breach? Few will disagree with David Cameron's observation that despite all the safeguards that the government has meant to have setup, it seems itself to routinely breach them. With faith in politics at such a low, and Brown the latest leader to declare that he would be different, this just once again reinforces the belief that "they're all the same." While the last week has seen many comparisons with the slow death of the Major government, it hasn't been widely acknowledged that it wasn't just Black Wednesday but also what happened after then that destroyed it and gradually turned it into a laughing stock, with the sleaze allegations, then uncovered by the Guardian being denied and challenged by the Tories. This time round it's the Mail on Sunday and with Labour owning up, but the effect remains the same. It's the image of a government not being in control of events, and constantly on the back foot. The only consolation is that the Tories are still not making the huge gains you would expect, Labour instead just falling behind. It's not yet critical, but any more unexpected disasters and Brown might well be permanently tainted.

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Monday, November 26, 2007 

It just gets worse.

I'll probably write more on this tomorrow, but there's at least one more than convincing fact that suggests that no one apart from Peter Watt knew about David Abrahams' hidden donations to Labour: he isn't a Lord.


Yet.

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