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Wednesday, July 07, 2021

Sleaze watchdog calls for reform of political funding

The Independent reports that the chair of the committee on standards in public life has urged the government to close a loophole allowing firms to make political donations from profits made abroad, using shell companies.

Lord Evans wants the secrecy surrounding who is funding online campaigns and “shadowy” unincorporated associations lifted. These are often the super-rich donating to the Conservatives:

“Stronger enforcement” of campaign finance is needed, he said – while pointing out the watchdog can only make recommendations and does not carry out investigations.

Political leaders are “chosen by the voters”, Lord Evans said, adding: “That’s the fundamental aspect of accountability in our system.

“You can’t get around the fact that we are a democracy and it is for the voters to decide who they want to take these political decisions.”

Unfortunately, not only does Lord Evans admit he is powerless to enforce these measures but it seems that the Government are already taking a different path. 

Elsewhere in the Independent it is reported that Boris Johnson is attempting to push through electoral reforms to give wealthy Tory donors living abroad a “free ticket” to bankroll the Conservative Party.

Under current rules, political parties cannot accept donations from Britons who have been living overseas for more than 15 years, since they are not allowed on the electoral roll. However the proposal in the Elections Bill, published this week, is to scrap the 15-year-limit and allow any British expat to join the electoral roll and become a permitted political donor:

The Electoral Reform Society previously warned of the dangers in allowing “unfettered donations from abroad”. And Lib Dem peer Lord Rennard said it would make it harder to “trace where the money is actually coming from”.

It seems that the sleaze watchdog is fighting a losing battle.

Comments:
One notes that the Tories were not pressing this reform before the Brexit referendum.

There is little objection to restoring voting powers to these individuals. The danger comes from allowing them to donate as they can act as a conduit for funds whose source is more difficult to establish than those onshore. The two powers should be separated and those for donation left as they are.

 
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