 | 'Labour's candidate in the Paisley South by-election, Douglas Alexander, has declared there will be "zero tolerance" of sleaze. But the wide-ranging allegations might cause him problems in the final days of the campaign. Labour's opponents are likely to allege that, if the party does have such compelling evidence of internal wrongdoing, it has dragged its feet over tackling it.' Stephen Breen in the Scotsman, 31 st October 1997. |  |
The Scotsman has obtained a copy of the interim report by Labour's national executive committee into the party in Renfrewshire, ordered after the death of the Paisley South MP, Gordon McMaster. Tommy Graham, the Renfrewshire West MP, his election agent, Councillor Harry Revie, and a former councillor, Olga Clayton, were suspended by the party two months ago when the inquiry was launched.
Mr Revie and Mrs Clayton were directors of the FCB group of community companies in Ferguslie Park, Paisley, which went into liquidation. At least £320,000 of public money disappeared from one of the companies, FCB Security.
The NEC has come to the initial conclusion that there is a "substantial body of evidence which points to a systematic approach" to party matters in Ferguslie Park and beyond "to gain political and personal advantage for some individuals".
The inquiry team looked at allegations that:
The report concludes: "The evidence that such behaviour was concerted and intended to provide benefit to one group of individuals is largely circumstantial but, though this interpretation will be flatly denied by those concerned, compelling."
It adds that the extent of involvement of the individuals still remains unclear and that a panel of the national constitutional committee needs to make further inquiries to establish the truth.
Although the NCC will have to test the credibility of the allegations, "there is available serious evidence to suggest a conspiracy to undermine the party's rules".
The report reveals that there does not appear to be "any substantive evidence" linking Mrs Clayton to the allegations and that she is likely to be exonerated once further investigations have been completed. Mrs Clayton, who was leader of Renfrew District Council before the establishment of unitary authorities, has taken part in "detailed discussions" with the inquiry team.
Mr Graham has already been interviewed in the presence of his solicitor by Labour's national constitutional officer, Mike Penn, and Maggie Jones from the NEC disputes committee. Mr Graham has said he is confident the inquiry will clear his name.
Despite the gravity of the allegations, the team has still not interviewed Mr Revie.
Both Mr Revie and Mrs Clayton have maintained in the past that, although they were directors of the FCB group of urban aid-funded companies, they did not take any day-to-day decisions, leaving them instead in the hands of paid officials.
They said they were surprised when a liquidator's report this year could not account for the £320,000 that went missing from FCB Security. The liquidator, Colin Hastings, said the money appeared to have been paid to ghost workers whose existence was doubtful.
Strathclyde Police are still conducting a lengthy inquiry into FCB Security, which began at the height of drugs wars in Ferguslie Park. Two months ago, after revelations in The Scotsman, the Crown Office finally contacted Mr Hastings.
Despite the serious evidence of potential criminal activity he had outlined in his report to the Crown Office, it took the prosecuting authorities seven months to contact him.
Labour councillors in Renfrewshire Council are understood to be set to strip Mr Revie of his post as chairman of the influential property and construction services committee. The Scottish National Party has called repeatedly for him to step down.
The Scotsman understands that Mr Revie rejected an appeal last week from the Labour leader of the council, Hugh Henry, that he resign his committee chairmanship.
Irene Adams, the MP for Paisley North, who has been involved in a power struggle with Mr Graham, is one of a large number of party members who have given evidence to the inquiry.
Among the allegations received by the inquiry team are claims that party rules were broken when members were bought-up to pack selection meetings.
The national constitutional committee will now have to assess the credibility of the allegations and give the suspended party members a chance to be further interviewed and cross-examined. If the charges are proven, the national constitutional committee can recommend to the national executive committee that action be taken, including making expulsions.
Although Labour will claim that the interim report shows it is prepared to take tough action against allegations of sleaze in the party, its opponents will state that it demonstrates the deep-seated problems the party has in the west of Scotland.
Labour's candidate in the Paisley South by-election, Douglas Alexander, has declared there will be "zero tolerance" of sleaze. But the wide-ranging allegations might cause him problems in the final days of the campaign.
Labour's opponents are likely to allege that, if the party does have such compelling evidence of internal wrongdoing, it has dragged its feet over tackling it.
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