Tories hit back at Osborne controversy
Wednesday, 22 October 2008 6:12 PM
The Conservative party has hit back at Labour attempts to launch a probe into George Osborne's relations with Russian billionaire Oleg Deripaska.
Gordon Brown called for a probe into the affair during today's prime minister's question time.
"This is a very, very serious matter indeed and I hope it's investigated by the relevant authorities," Mr Brown said.
Labour MP Denis MacShane has written the shadow chancellor a letter asking him several questions about the incident.
This afternoon a Tory party spokesman hit back, saying: "The prime minister's statement in the Commons and Denis MacShane's letter are a desperate attempt to keep this story going.
"The person who hasn't answered any questions is Peter Mandelson, who should immediately set out a detailed account of his numerous dealings with Mr Deripaska."
Mr Osborne faced a new attack this morning after his university friend Nathaniel Rothschild named a witness to discussions about securing a donation from Mr Deripaska.
The new front opened just hours after Mr Osborne released a full account of his dealings with Mr Deripaska.
Mr Rothschild said James Goodwin, a guest at his Corfu villa, was present during conversations between him, Mr Osborne and Andrew Feldman, Tory chief executive, about the donations.
"Mr Goodwin recalls that the subject of a donation by Mr Deripaska's UK company also arose briefly while we were on the boat, but the conversation gained no traction," Mr Rothschild said.
"At dinner at my house later that evening, the subject again came up in conversation, and Mr Osborne was interested in whether and how such a donation could be secured."
The donations would have been contributed through Mr Deripaska's British company Leyland Daf.
Party officials have admitted Mr Osborne is not willing to go to court over the affair, contrary to threats from his spokesman early yesterday that he would sue for defamation.
It is legal for a British company with an international owner to donate money to a British political party, but not if the company is being used a cover for the owner's donations.
In practise, it's extremely difficult to show this causal chain, but with discussions raised on the owner's actual yacht, it would be difficult for Mr Osborne to get through the ensuing coverage with his reputation intact.
Mr Goodwin is strongly connected to the rich, powerful circles that characterise the controversy. He is a former adviser to US president Bill Clinton and prospective non-executive director of Rusal, Mr Deripaska's aluminium company.
The Tories have already denied the new allegations.
David Cameron told reporters last night: "It was the right judgment not to ask for any money, it was the right judgment for the Conservative party not to take any money and it was the right judgment today to come out and explain very clearly all the conversations that took place."
He repeated the defence this morning, saying: "No money was requested and none given."
But senior Tories are ill-at-ease over the controversy, which has highlighted serious questions over the shadow chancellor's judgement and once again associated the Tory brand with hints of sleaze.
Earlier today Lord Tebbit said: "One has to say that George Osborne should remember that those who sleep with dogs will get fleas."
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