A senior Labour legal adviser told Keir Starmer’s chief of staff to describe £740,000 in hidden donations as an “admin error”, leaked emails have revealed
A top Labour legal adviser directed Keir Starmer’s chief of staff to dismiss £740,000 in hidden donations as merely an “admin error”, leaked emails have revealed.
Morgan McSweeney’s crisis has intensified following the explosive correspondence that disclosed fresh details about the scandalous episode which led to his think-tank being penalised in 2021 for breaching electoral law on 20 occasions over undeclared donations, according to the Daily Mail.
The legal adviser’s message pushed Mr McSweeney to retract his unsupported claim that officials had told him donations totalling £739,492 to Labour Together were excluded from reporting obligations. The email cautioned that inability to provide backing evidence might provoke the Electoral Commission during its probe into the situation.
The revelation comes as catastrophic polling for Keir Starmer highlights the three scandals that could destroy Labour.
Rather than this approach, the solicitor recommended presenting the whole episode as simply an “admin error”, reports the Express.
Tories call for police investigation
The Daily Mail secured the correspondence, which the Conservatives released in full on Tuesday night, whilst escalating demands for police intervention in the affair.
Conservative Party chairman Kevin Hollinrake declared: “The evidence is clear – Morgan McSweeney has been caught red-handed hiding hundreds of thousands of pounds which helped install Keir Starmer as Labour leader.
“This latest scandal at the very heart of government is incredibly serious – and potentially criminal – yet Keir Starmer has expressed his full confidence in his chief of staff, once again demonstrating his poor judgment and raising serious questions about his integrity and honesty.
“Nothing-to-see-here Keir may think he can ride this one out as he tried to over the Mandelson-Epstein scandal, or perhaps he is too weak to fire a chief of staff who tells him what to think, but the Conservatives will not stop fighting until we get to the truth. That is why we are calling on the Electoral Commission and the police to urgently investigate.”
The Express has invited Number Ten to comment on the allegations.
McSweeney faces mounting pressure
Mr McSweeney orchestrated Labour’s electoral victory and serves as Sir Keir’s most reliable deputy, yet he faces increasing revolt from Labour MPs over the party’s declining poll numbers.
He has also attracted harsh condemnation lately for his catastrophic advice to Sir Keir concerning Lord Mandelson’s nomination as US ambassador, whilst being completely aware of his ongoing connections with convicted paedophile Jeffrey Epstein following his conviction for child sex crimes.
These fresh disclosures could revive a controversy Labour has strived to remove from public scrutiny.
Electoral Commission findings The Electoral Commission uncovered more than 20 violations of donation rules by Labour Together in September 2021, leading to a £14,250 fine for the group, according to the Daily Mail.
The watchdog had explicitly warned Mr McSweeney in 2017 regarding the compulsory 30-day timeframe for declaring donations.
However, numerous contributions received by Labour Together between 2018 and July 2020 remained undisclosed until Mr McSweeney left the organisation later that year.
The newly revealed legal advice undermines Labour Together’s public stance that undeclared donations resulted from “human error and administrative oversight” – whilst also questioning their claims of upholding full “openness and transparency”.
Systematic concealment pattern surfaces
Upon becoming director in 2017, Mr McSweeney initially followed proper procedures for declaring donations to the organisation. However, by early 2018, he had abandoned this practice – except for one instance where he disclosed £12,500 from Trevor Chinn, a businessman and Tony Blair ally.
His replacement Hannah O’Rourke discovered almost three years’ worth of undeclared donations totalling £739,000 only after Mr McSweeney’s exit to join Sir Keir’s team as the incoming Labour leader, then submitted numerous “overdue” declarations to the commission.
Legal expert’s caution exposed
Gerald Shamash, identifying himself as “solicitor to the Labour Party”, dispatched the leaked correspondence to Mr McSweeney in February 2021. Mr Shamash observed that the magnitude of undisclosed donations left “no easy way to explain how Labour Together finds itself in this situation”.
He outlined attempts to “guide” the Electoral Commission towards implementing an administrative penalty that would “minimise publicity”.
Mr McSweeney appeared to assert that commission officials told him during a phone call in early 2018 that his think-tank didn’t need to report donations.
Nevertheless, Mr Shamash warned that no record of this purported conversation existed at either the watchdog or Labour Together.
The Express contacted Lord Shamash through the House of Lords for a response.
Legal guidance conflicts with public statements
He clarified that without evidence of the telephone exchange – and reasoning for disregarding previous commission advice – Labour Together might have to blame the regulatory breaches on clerical errors.
Mr Shamash noted that the commission “have a record of a number of calls with Labour Together but none with you”.
His assessment concluded: “It may be better if Labour Together cannot deal substantively with questions I pose, then perhaps best to simply base our case as to the non-reporting down as admin error.”
Pressure grows regarding McSweeney’s involvement
These revelations intensify calls for Mr McSweeney to explain his choice to conceal significant donation sums whilst the think-tank was backing Sir Keir. A biography of the PM disclosed that Mr McSweeney’s advisory role with Sir Keir kicked off in the summer of 2019, which included access to polling data worth a hefty sum – this was prior to Labour’s electoral defeat that year.
Downing Street has sidestepped answering queries about Mr McSweeney’s tenure at Labour Together.
However, the Prime Minister’s official spokesperson confirmed that Sir Keir still had “full confidence” in his chief of staff amidst the unfolding controversy.
Labour Together has been contacted for a comment on these revelations.
The commission declared that it had “thoroughly investigated” the delayed reporting in 2021, stating: “Offences were determined and they were sanctioned accordingly.”
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