BRITAIN:Gordon Brown suffered a fresh setback last night when the Electoral Commission confirmed it had referred Labour's unlawful secret donations to the police for further investigation.
Just months after the conclusion of the controversial "cash for honours" inquiry, the "Nightmare on Downing Street" resumed - with Britain's governing party again facing the prospect of criminal charges arising from its breach of its own laws, and with its new prime minister in the front line over allegations of Labour "sleaze".
The commission will today submit its report arising from the revelation that property developer David Abrahams contributed more than £650,000 over the past four years using proxies or middlemen to conceal his identity as donor. Mr Brown - who announced earlier this week that the money would be returned - has already accepted that the donations were not lawfully declared.
Metropolitan Police commissioner Sir Ian Blair said the next step would be for his force to "receive and review" the Commission's report. A spokeswoman for the commission said: "The Electoral Commission has been in dialogue with the Crown Prosecution Service since November 26th and (on Thursday afternoon) held further discussions with the CPS and Metropolitan Police Service. The commission has now decided to refer matters to the Metropolitan Police Service for further investigation."
The widely expected announcement came as pressure continued to build on Mr Brown's appointed fund-raiser, Jon Mendelsohn, after the discovery that he learned of the concealment arrangement and - while intending to bring it to an end - failed to report the matter to Mr Brown, Labour's ruling National Executive Committee or the police.
Labour's funding troubles also spread to Scotland yesterday, where new Scottish party leader Wendy Alexander lost her transport spokesman after he admitted misleading her team about the source of a £950 donation to her leadership campaign.
Meanwhile Labour deputy leader Harriet Harman boldly predicted she would survive the discovery that she accepted a £5,000 contribution to her deputy leadership campaign from a Janet Kidd, who turned out to be acting on behalf of Mr Abrahams.
Her Conservative shadow, Theresa May, told Ms Harman she, "the prime minister and the Labour Party treasurer" were like the three wise monkeys. "They see no evil, hear no evil and speak no evil. However, Ms Harman told MPs: "She [ Mrs May] can huff and puff, but she will not blow this Leader of the House down."