Watchdog to probe British resident´s donation to the Liberal Democrats

By H. Carter/Reuters BRITISH-RESIDENT Michael Brown's charity golf tournament got underway in Majorca yesterday with Britain's electoral watchdog announcing it would investigate a £2.4 million donation to the Liberal Democrat party from his Swiss-based firm to see whether it broke election laws. The Electoral Commission said it was looking to see whether the donation from the company, 5th Avenue Partners, which was made before May's election, was permissible. British electoral law requires that companies which give money to political parties must be registered and trading in the UK. “The Electoral Commission will seek to clarify with the Liberal Democrats whether the company was, at the time the donations were made, a permissible donor,” the watchdog said in a statement. The Liberal Democrats' chief executive Lord Rennard said he believed the party had done nothing wrong. “We believe that we have acted in good faith and properly in relation to all donations received by the Liberal Democrats and that all donations we have received are from individuals entitled to donate to British political parties or from companies based and trading in the UK,” he said in a statement. The Times said the donation, the party's biggest ever, had allowed the Lib Dems to spend about £6 million on campaigning before the election, helping the UK's third-biggest party to win 62 seats in parliament. Michael Brown, the owner of 5th Avenue, told the Times he felt “totally let down” by the Lib Dems, saying he had relied on the party to ensure the donation was acceptable. “If the people who handled my donation were elected to run the economy, I would not be happy - it would be disastrous,” the Times quoted him as saying. Michael Brown has lived in Majorca since 1998 and this weekend is holding his first charity event for the IDB Foundation he established in honour of his late father who died two years ago. Some of Britain's richest people are playing in the event which includes a charity auction tonight. One of the items up for auction is lunch with Lib Dem leader Charles Kennedy in the House of Commons and seats at PM'S Question Time. Money raised will go to building a village with school and medical centre in Ethiopia.