Watchdog weighs investigation into Farage’s undisclosed £5m donation

Lead

Nigel Farage, leader of the Reform UK party, is facing a formal investigation by the Parliamentary Commissioner for Standards over a £5m gift he received from the crypto billionaire Christopher Harborne. The gift was not declared to parliamentary authorities, and Farage has said it was intended to cover his personal security costs. The Electoral Commission is also considering whether to launch an investigation into the matter.

Coverage Comparison

The investigation was confirmed by the Parliamentary Commissioner for Standards, which listed Farage on its website as being investigated over an alleged "failure to declare an interest." The inquiry was opened on Wednesday, according to the entry, which cites rule 5 of the code of conduct for MPs.

Farage received the money weeks before announcing he would stand as a candidate in the 2024 general election. He has argued that because it was an unconditional gift, received before he announced his candidacy, there was no need to declare it once he became an MP. However, Labour and other parties argue that MPs are required to declare any potentially relevant gifts or donations received in the 12 months before entering parliament, and that the money from the Thailand-based Harborne falls within these rules.

The Guardian reported that Farage initially said he did not intend to stand as an MP but reversed his position in June 2024, within weeks of receiving the gift. After being approached by the Guardian for comment, Farage confirmed to the Daily Telegraph that he had received the gift, saying it was for personal security.

Reform UK has denied any wrongdoing. A spokesperson for the party said: "He [Farage] has always been clear that this was a personal, unconditional gift and no rules were broken. We look forward to this being put to bed once and for all."

The investigation comes after Reform UK emerged as the biggest winner in local elections earlier in May, prompting increased scrutiny of the party's sources of funding.

Key Claims

• The £5m gift: Farage received £5m from Christopher Harborne, a Thailand-based crypto billionaire, shortly before the 2024 general election. The gift was not declared to parliamentary authorities.
• Personal security claim: Farage has said the gift was intended to cover his personal security costs and therefore did not need to be declared.
• Investigation: The Parliamentary Commissioner for Standards has opened a formal investigation into whether Farage breached rules by failing to declare the gift. The Electoral Commission is also considering whether to investigate.
• Property purchases: Farage bought a £1.4m property in Surrey in May 2024, weeks after receiving the gift. He has said the gift was not used to fund the purchase, but accounts for his personal media company suggest money for the house may not have come from his reality show fee as he claimed.
• Partner's house: Farage's partner, Laure Ferrari, purchased a house in Clacton. She has refused to confirm how she paid for it, saying "there's more than one way to pay for a house." Labour has called on Farage to clarify how the purchase was funded.
• Helicopter use: Farage has faced questions over his use of a donor's helicopter for travel to rallies. Reform UK said the flights were paid for at commercial rates and there was no undeclared registrable interest.
• Labour criticism: Labour has accused Farage of attempting to dodge scrutiny. Party chair Anna Turley said: "Nigel Farage has repeatedly dodged questions on his multimillion-pound 'gift'. Now we can see why – this totally stinks. Farage must urgently come clean with the public as to what this £5m was used for and why he failed to declare it."

Perspectives

Reform UK: The party denies any wrongdoing, stating that the gift was personal and unconditional, and that no rules were broken. A spokesperson said they look forward to the matter being "put to bed once and for all."

Labour Party: Labour argues that Farage failed to declare the gift as required and has called for transparency. Labour chair Anna Turley said Farage's actions "totally stinks" and demanded he explain what the money was used for.

Conservative Party: The Conservatives referred Farage to the parliamentary standards watchdog, arguing that he was "obliged" to declare the gift. Party chair Kevin Hollinrake said the £5m "raises serious questions."

Defence Secretary John Healey: Healey has urged Farage to provide transparency about the gift, specifically asking whether any of the sum could be linked to Russia-connected profits. He also raised the possibility that the war against Iran might boost revenues of AML Global, a company owned by Harborne.

Farage's partner, Laure Ferrari: Ferrari has declined to confirm how she paid for the house in Clacton, saying "there's more than one way to pay for a house." She insisted she paid all taxes and that the house is in her name.

Electoral Commission: The watchdog is considering whether to investigate the undisclosed donation, saying it is "aware of this matter and are considering it under our regulatory remit."