Sunday, January 01, 2012

Rewarding Party Donors in the Honours System Risks Bringing System into 'Disrepute' Says Sir Christopher Kelly

THE SUNDAY TELEGRAPH: Handing knighthoods and other honours to financial backers of major political parties risks bringing the system into “disrepute” because of the suspicion of corruption, according to the standards watchdog.

Sir Christopher Kelly, the chairman of the Committee on Standards in Public Life, was speaking after four leading Conservative donors who had collectively given the party nearly £1million were given awards in the New Year honours list.

Paul Ruddock, a hedge fund manager, and Doug Ellis, a package holiday millionaire were knighted, while James Lupton, an investment banker, and James Wates, a construction firm tycoon, were awarded CBEs in Saturday’s list.

However Labour criticised the awards, suggesting the Government was using the system to reward individuals who had been generous to the Conservative party.

Sir Christopher said that the claims showed why rules on party funding needed to be changed to prevent any suspicion that rich individuals can buy influence. The three main parties are considering proposals he submitted in November.

He told The Daily Telegraph: “For as long as you can make political donations, when there is a coincidence between honours and donors you get this sort of story.

“It implies corruption even when there isn’t any. It is unsatisfactory. It is bad all round. They risk bringing it [the honours system] into disrepute.” » | Christopher Hope, Senior Political Correspondent | Sunday, January 01, 2012