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Jan 11, 2008
British minister admits new party finance blunder
LONDON - A BRITISH minister admitted on Thursday for failing to declare a chunk of funding for his bid to become the ruling Labour Party's deputy leader, threatening fresh embarrassment for Prime Minister Gordon Brown.

Work and Pensions Secretary Peter Hain said he had not disclosed 103,000 pounds (S$288, 863) given to the fighting fund for the race last year in which he came fifth out of six candidates.

In a statement, he explained the situation by saying he had given the deputy leadership bid in May and June 'second priority' to his role at the time as Northern Ireland Secretary.

Labour has repeatedly found itself in hot water over political funding recently.

Former premier Tony Blair's final months in office were dogged by the 'cash for honours' row over allegations that party financial supporters were rewarded with seats in the House of Lords unelected upper chamber.

Two of his closest aides were arrested during a police investigation but no one was charged.

Mr Blair stepped down last June but the row came back to haunt Mr Brown in November last year when Labour's general secretary Peter Watt resigned after it emerged that property developer Mr David Abrahams gave the party 600,000 pounds through four other people in breach of funding rules.

Mr Brown denied any knowledge of the donations and said a review would be set up into the situation.

Mr Hain, whose family fled South Africa when he was a teenager, first shot to attention here as an anti-apartheid campaigner who organised pitch invasions during the Springboks' rugby tour of Britain in 1970.

He said his campaign had had to raise extra cash after the end of the deputy leadership contest, triggered when Mr John Prescott said he would step down alongside Mr Blair, when unpaid invoices emerged.

He found out in November last year that these had not been declared within the required timescale and 'immediately' told watchdog the Electoral Commission, he said.

'I very much regret that these reports were not made on time,' Mr Hain added.

'I should have given higher personal priority to the day-to-day administration and organisation of my campaign.' -- AFP

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