Osborne 'discussed donation from Russian billionaire'
George Osborne denies discussing donations with Russian billionaire Oleg Deripaska
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Tuesday, 21, Oct 2008 07:35
George Osborne, the shadow chancellor, discussed a potential donation from a Russian billionaire, media sources have claimed.
According to the BBC's political and business editors Nick Robinson and Robert Peston, Mr Osborne spoke about a donation with mutual friend Nathaniel Rothschild.
The shadow chancellor, who denies trying to secure a donation, is the latest politician to be embroiled in controversy surrounding meetings with Oleg Deripaska, Russia's richest man, in Corfu.
A letter to the Times from Mr Rothschild, also a friend of business secretary Lord Mandelson, claims the shadow chancellor and Andrew Feldman, Tory party chief executive, visited the yacht of Mr Deripaska this summer to secure a £50,000 donation.
The allegation follows the revelation Lord Mandelson enjoyed a prolonged stay on the yacht during the same holiday.
The claim that Mr Osborne and Mr Feldman tried to secure a donation - illegal under British law - is rigorously denied by Tory HQ and Mr Osborne himself.
"We didn't ask for the money and we didn't receive it," Mr Osborne told journalists.
"The central allegation is that I solicited a donation. That is not true."
Sources quoted by Mr Robinson and Mr Peston claim they witnessed a meeting between Mr Osborne and Mr Rothschild discussing a donation from Mr Deripaska. They are reportedly prepared to go to court to defend their claims.
When faced with questions about how far the Conservative party considered trying to receive donations from Mr Deripaska, Mr Osborne consistently evaded the question.
"Political parties are offered donations by intermediaries all the time," he said.
"What the public are entitled to know is whether we accept donations."
The Tories are due to release a detailed timeline of Mr Osborne's meetings with Deripaska later on Tuesday.
The shadow chancellor added: "Journalists are told to follow the money; in this case there's no money to follow."
In a statement released to the media, the Tories said: "The allegations made in Mr Rothschild's letter are completely untrue.
"They spent a short period of time on Mr Deripaska's boat at the invitation of Mr Rothschild.
"Donations to the Conservative party were not discussed with Mr Deripaska."
On Tuesday, Mr Deripaska also denied discussing donations.
According to Mr Rothschild, Mr Feldman had suggested Mr Deripaska could contribute by channelling his donation through one of his British companies – a move explicitly outlawed by the Political Parties, Elections and Referendums Act 2000.
The Conservatives say it was Mr Deripaska who offered money, although at a later date. According to their account, the Conservatives turned him down.
Today's revelations are extraordinary on several levels. Firstly, it prompts serious questions over the motives of Mr Rothschild, who has been a close friend of Mr Osborne's since they attended Oxford University together and both joined the high-society Bullingdon club.
It also adds further layers to the political drama which played out on the Greek island over the summer.
The basic outline became evident when Lord Mandelson was recalled to government during the Cabinet reshuffle earlier this month. Mr Osborne took the opportunity to tell the media how Lord Mandelson had "dripped poison" into his ear about Gordon Brown when the two had dinner together on the island.
Their meeting was, it goes without saying, due to their mutual relationship with Mr Rothschild.
But of the two men, pressure had so far been focused on the Labour business secretary, whose presence on Mr Deripaska's yacht during the holiday caused widespread consternation.
The concern centred around the fact Lord Mandelson – as EU trade commissioner - had signed off a decision to remove a 14.9 per cent tariff on Mr Deripaska's aluminium company Rusal in December 2005.
Smelling a conflict of interest, journalists asked Lord Mandelson when he had first met Mr Deripaska.
According to Mr Mandelson, it was between 2006 and 2007, but the Times newspaper said two reliable sources confirmed Mr Mandelson had dinner with Mr Deripaska in late January 2005.
But with Mr Rothschild's letter, the focus has now moved onto Mr Osborne, and whether or not he toyed with the idea of trying to channel Mr Deripaska's funds into Tory party coffers.