5th Avenue Partners Ltd

From Democracywiki

Financial company owned by Michael Brown, a Scot based in Majorca, and who is believed to be the largest ever donor to the Liberal Democrats. The New Politics Network have stated that they believe this donation has highlighted a loophole in the existing Political Parties, Elections and Referendums Act 2000 legislation on party donations. Although donations from non-UK residents have been banned, in principle there is nothing to stop them from buying a UK company off-the-shelf and using this to donate to a UK political party.

Political Interests

23 September 2005: It has been widely reported that this donation is being investigated by the Electoral Commission as to whether 5th Avenue Partners Ltd were trading in the UK at the time the donations were made. If this turns out to not be the case, the Liberal Democrats will have to return the donation (See: The Times, BBC News, The Guardian). The Commission subsequently issued the following statement:

The Electoral Commission met with the Liberal Democrats to clarify whether or not 5th Avenue Partners was, at the time of the donations, a permissible donor on the basis that it was a company "which carries on business in the United Kingdom".

We have concerns about the extent of the initial permissibility checks carried out by the Liberal Democrats, and will be having further discussions with the party to ensure that they have a robust checking process for all corporate donations. We shall also have similar discussions with all political parties.

However, the Commission?s view is that, based on all the evidence which the party now has, and subject to any further information becoming available, it is reasonable for the party to regard the donations as having been permissible.

21 November 2005: Fresh doubts over £2.4m donation to Liberal Democrats.

24 November 2005: Kennedy failed to declare free flights

25 November 2005: Kennedy admits he was wrong over free flights

29 November 2005: Kennedy's six days of foreign-paid flights broke election law

12 October 2006: Lib Dems' £2.4m was donated by fraudulent firm

15 October 2006: Lib Dems 'should return donation'

16 October 2006: Lib Dem party members may face £2.4m bill

Links

• 'Loophole' anger at £2.4m overseas gift to Lib Dems (Times, 25 May 2005).