LABOUR is expected to raise the stakes in the row over party-political
funds today by agreeing to return cash donated by a Greek Cypriot.
The issue will top the agenda of the meeting of the ruling National
Executive Committee, which is also expected to support moves to name
large donors.
Labour general secretary Larry Whitty will ask the NEC to agree in
principle to pay back #11,000 given by businessman Charilaos Costa.
The Serious Fraud Office is investigating the alleged fraudulent
disappearance of up to #14m from Mr Costa's clothing companies.
He has been living in Cyprus since his business collapsed in 1991, and
a warrant is outstanding for his arrest on a charge of conspiracy to
defraud.
The Labour meeting comes after weeks of ferocious in-fighting between
the parties over sources of their funds.
A Labour agreement to repay the cash could put extra pressure on the
Tories to follow suit.
Labour has repeatedly urged the Tories to hand over the ''tainted''
#440,000 given by fugitive businessman Asil Nadir, and to publish names
of major donors.
Fresh allegations about secret Tory funds emerged last night.
Channel 4 News claimed Tories have for decades run three companies,
the Arun, Bourne and Colne Associations, based at London's Lincoln's Inn
and dubbed ''the river companies'', to handle millions of pounds of
secret donations to party coffers.
It was alleged the companies were kept secret even from party members.
Shadow Trade Secretary Robin Cook said on Channel 4 News: ''If they
have got nothing to hide, why do they go to such lengths to hide it?
He added: ''There is nothing illegal in what they have done, but there
is certainly a lack of openness about what they have done.''
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