Post by northwestman on Mar 10, 2023 10:28:01 GMT 1
Dark Money and Foreign Influence
The UK has particularly lax campaign finance laws. As a result, many donations get through that probably shouldn’t. Yes, there are permissibility requirements in place, but there are plenty of ways to evade them if you want to.
The term “Dark money” refers to donations whose origins are untraceable. Because the ultimate source cannot be confirmed, there is no way of knowing whether that money comes from the kind of person or organisation that shouldn't have influence over our lawmakers.
One example of dark money is the "Proxy Donation". These are donations made by one person, who would not be a permitted donor, in the name of another who is. Some examples include:
Ehud Sheleg, art dealer and former Conservative party treasurer, gave over £600k to the Tory party. Documents later showed that the money originated in a Russian account of Sheleg’s father-in-law – a former official in the old pro-Putin regime in Ukraine. Proxy donations are a complete blindspot in the law, so there was no legal mechanism to hold him accountable for it.
Lubov Cherdukhin – back at it again – gave money to the Conservative party while her husband was receiving funds from business deals with sanctioned Russian oligarchs. She gave £50k to the Tories 8 days after Putin invaded Ukraine.
Mohamad Amersi has given over £200k to the Conservatives and worked closely with Boris Johnson on key policy decisions. Prior to the donation, he was given a large deposit from a Kremlin-linked company secretly owned by Putin’s telecoms minister Leonid Reiman.
"Shell Companies" are another way for dubious donors to evade the rules. According to Transparency International, 14% of LLPs established in the UK between 2001-2021 (21,000 companies) show signs of being shell companies. Here are some examples:
Conservative mega-donor Lubov Cherdukhin, who once paid £160k to play tennis with Boris Johnson, was being paid out by a shell company secretly owned by Russian senator and Putin ally Suleiman Kerimov, according to the BBC.
The offshore company Aquind is owned by a former Russian oil magnate and a Russian arms manufacturer. The company has donated heavily to the Conservative party.
Top Labour MPs Wes Streeting, Yvette Cooper, and Dan Jarvis received a combined £345,000 from a company called MPM Connect Ltd, which has no staff or website and is registered at an office where the secretary had never heard of the company.
"Unincorporated Associations" are nebulous groups with little oversight or legal classification. It’s essentially like ticking the “miscellaneous” box on a donation form when asked what kind of organisation you are.
Tory minister Steve Baker’s “Covid Recovery Group” organisation (a parliamentary coalition of anti-lockdown Conservative MPs) received tens of thousands from a UA called the Recovery Alliance. It has no digital footprint, no registered members, and its finances are completely opaque. Opendemocracy has linked it to a number of other covid conspiracy campaigns and anti-lockdown groups.
Richard Cook’s “Constitutional Research Group” – of which he is the only listed member and chair – gave £435,000 to the DUP’s Brexit campaign. No one knows for sure where the money came from, but investigative journalists discovered his involvement in a number of illicit trades, including underground trash-dumping and fire-arms sales.
According to Byline Times, 29 different opaque UAs donated £14 million to the Conservative party between 2010-2022.
Big Money
Between 2001 and 2021, one-fifth of all political donations in the UK came from just ten men with an average age of 70. If that doesn’t indicate that we have a big problem, we’re really not sure what would.
While there’s nothing inherently wrong with political donations, huge amounts of money coming from multinational corporations and the mega-rich does raise questions about who really calls the shots. Especially when they seem to get things in return.
Here are some situations where extremely wealthy individuals and corporations used their financial heft to influence things:
In 2021, the Conservatives received £400k in donations from oil and gas companies while the government was deciding on new oil and gas licences.
More generally, the Tories took over a million from oil companies between 2019 and 2021.
From 2020-2022, the Conservatives took £15 million from the financial services industry, which they were certainly kind to when it came to dealing with banker’s bonuses.
Labour MP Wes Streeting received £15k from John Armitage, former Tory party donor and manager of a hedge fund that owns half a billion dollars in US health insurance and private healthcare. Streeting recently came out in support of private hospitals.
The “Leader’s Group” is a dining club of Tory super-donors that has given over £130 million to the party since 2010. The club’s billionaires and business moguls have been known to dine with Boris Johnson.
In 2022-2023, controversial groups, including gambling giants, climate sceptic organisations, and evangelical Christian groups, made over £1 million in donations for staffing the Labour front bench. Recipients include MPs Wes Streeting, Rachel Reeves, and Yvette Cooper. Reeves alone received nearly £250k.
Recently, Crossbench peer Caroline Cox received large donations from American evangelical Christian activists against gay marriage that used hateful language about Muslims.
While the Conservatives often top the list when it comes to money in politics, remember that this is a cross-party systemic problem. The real issue is that the rules that are supposed to prevent the wealthy from buying influence just aren't strong enough. We’ve allowed a situation to emerge where money can buy outcomes almost directly, and the mechanisms to detect the sources of that money are ineffective. Our system just isn’t fit for the 21st century.
Open Britain.
The UK has particularly lax campaign finance laws. As a result, many donations get through that probably shouldn’t. Yes, there are permissibility requirements in place, but there are plenty of ways to evade them if you want to.
The term “Dark money” refers to donations whose origins are untraceable. Because the ultimate source cannot be confirmed, there is no way of knowing whether that money comes from the kind of person or organisation that shouldn't have influence over our lawmakers.
One example of dark money is the "Proxy Donation". These are donations made by one person, who would not be a permitted donor, in the name of another who is. Some examples include:
Ehud Sheleg, art dealer and former Conservative party treasurer, gave over £600k to the Tory party. Documents later showed that the money originated in a Russian account of Sheleg’s father-in-law – a former official in the old pro-Putin regime in Ukraine. Proxy donations are a complete blindspot in the law, so there was no legal mechanism to hold him accountable for it.
Lubov Cherdukhin – back at it again – gave money to the Conservative party while her husband was receiving funds from business deals with sanctioned Russian oligarchs. She gave £50k to the Tories 8 days after Putin invaded Ukraine.
Mohamad Amersi has given over £200k to the Conservatives and worked closely with Boris Johnson on key policy decisions. Prior to the donation, he was given a large deposit from a Kremlin-linked company secretly owned by Putin’s telecoms minister Leonid Reiman.
"Shell Companies" are another way for dubious donors to evade the rules. According to Transparency International, 14% of LLPs established in the UK between 2001-2021 (21,000 companies) show signs of being shell companies. Here are some examples:
Conservative mega-donor Lubov Cherdukhin, who once paid £160k to play tennis with Boris Johnson, was being paid out by a shell company secretly owned by Russian senator and Putin ally Suleiman Kerimov, according to the BBC.
The offshore company Aquind is owned by a former Russian oil magnate and a Russian arms manufacturer. The company has donated heavily to the Conservative party.
Top Labour MPs Wes Streeting, Yvette Cooper, and Dan Jarvis received a combined £345,000 from a company called MPM Connect Ltd, which has no staff or website and is registered at an office where the secretary had never heard of the company.
"Unincorporated Associations" are nebulous groups with little oversight or legal classification. It’s essentially like ticking the “miscellaneous” box on a donation form when asked what kind of organisation you are.
Tory minister Steve Baker’s “Covid Recovery Group” organisation (a parliamentary coalition of anti-lockdown Conservative MPs) received tens of thousands from a UA called the Recovery Alliance. It has no digital footprint, no registered members, and its finances are completely opaque. Opendemocracy has linked it to a number of other covid conspiracy campaigns and anti-lockdown groups.
Richard Cook’s “Constitutional Research Group” – of which he is the only listed member and chair – gave £435,000 to the DUP’s Brexit campaign. No one knows for sure where the money came from, but investigative journalists discovered his involvement in a number of illicit trades, including underground trash-dumping and fire-arms sales.
According to Byline Times, 29 different opaque UAs donated £14 million to the Conservative party between 2010-2022.
Big Money
Between 2001 and 2021, one-fifth of all political donations in the UK came from just ten men with an average age of 70. If that doesn’t indicate that we have a big problem, we’re really not sure what would.
While there’s nothing inherently wrong with political donations, huge amounts of money coming from multinational corporations and the mega-rich does raise questions about who really calls the shots. Especially when they seem to get things in return.
Here are some situations where extremely wealthy individuals and corporations used their financial heft to influence things:
In 2021, the Conservatives received £400k in donations from oil and gas companies while the government was deciding on new oil and gas licences.
More generally, the Tories took over a million from oil companies between 2019 and 2021.
From 2020-2022, the Conservatives took £15 million from the financial services industry, which they were certainly kind to when it came to dealing with banker’s bonuses.
Labour MP Wes Streeting received £15k from John Armitage, former Tory party donor and manager of a hedge fund that owns half a billion dollars in US health insurance and private healthcare. Streeting recently came out in support of private hospitals.
The “Leader’s Group” is a dining club of Tory super-donors that has given over £130 million to the party since 2010. The club’s billionaires and business moguls have been known to dine with Boris Johnson.
In 2022-2023, controversial groups, including gambling giants, climate sceptic organisations, and evangelical Christian groups, made over £1 million in donations for staffing the Labour front bench. Recipients include MPs Wes Streeting, Rachel Reeves, and Yvette Cooper. Reeves alone received nearly £250k.
Recently, Crossbench peer Caroline Cox received large donations from American evangelical Christian activists against gay marriage that used hateful language about Muslims.
While the Conservatives often top the list when it comes to money in politics, remember that this is a cross-party systemic problem. The real issue is that the rules that are supposed to prevent the wealthy from buying influence just aren't strong enough. We’ve allowed a situation to emerge where money can buy outcomes almost directly, and the mechanisms to detect the sources of that money are ineffective. Our system just isn’t fit for the 21st century.
Open Britain.
