Alexander tycoon up for honour

THE businessman at the centre of the Wendy Alexander donation scandal was backed for an honour by senior figures in the Labour Party, it emerged last night.

MSP Charlie Gordon, who resigned last week as Labour's transport spokesman after it emerged he arranged an illegal donation from Jersey tycoon Paul Green, has now admitted he earlier supported the same businessman for an unspecified honour.

Green's spokeswoman last night confirmed he had been in line for an honour and claimed that four other Labour figures were involved in writing letters of recommendation.

The revelation comes just months after an exhaustive police inquiry into the cash-for-honours affair concluded south of the Border without charges. It was alleged Labour officials had offered knighthoods and peerages in return for donations.

Paul Green's spokeswoman last night stressed the businessman had not received an honour and strenuously denied any link to cash for honours. She said it was not surprising that someone who had done as much for Glasgow as Green - he gave the council £1m for social development - was being considered for an honour.

But the admission that Green was backed for an honour by the then leader of Glasgow City Council will increase pressure on besieged Labour leader Alexander. She has been plunged into a crisis over party funding after it emerged that her campaign to be Scottish Labour leader accepted a donation from Green of £950, and an earlier donation to the party's Holyrood election campaign for the same amount. Because Green is not resident in the UK, it broke electoral law for Labour or Alexander to accept the funds.

The problems are part of a wider crisis over funding which has gripped the Labour Party in the past week. It emerged last weekend that the party had accepted £600,000 through intermediaries which meant that the original donors' names were not made public, a breach of the laws on political funding. The Electoral Commission is investigating and the police have made clear that they will get involved in the investigation.

Charlie Gordon was the Labour leader of Glasgow City Council from 1999 to 2005. He became the MSP for Glasgow Cathcart in 2005. While Gordon was council leader he had dealings with Green over business developments in Glasgow, including the massive new £450m Silverburn Shopping Centre.

Gordon last night confirmed that he had been one of the five Labour figures who had backed Green for an honour. The move is understood to have happened between 2003-2005.

Charlie Gordon said: "I have never personally nominated anyone for an honour, but I have on two occasions written supporting material, along with others, for nominations by the Lord Provost of Glasgow. I recollect writing a supporting document for a nomination for Paul Green."

A spokeswoman for Green said: "Mr Green was put forward for a nomination for an honour. As he recalls, Charlie Gordon wrote in support of the nomination." The spokeswoman claimed several other Labour figures were also involved.

She added: "It never was discussed what the honour would be. If you look at what he has done for Glasgow it's not really surprising he was nominated."

A Scottish Tory spokesman said: "We now need to know about every donation made by him [Green] or on behalf of him to the Labour Party. Every new fact begs new questions."

An SNP spokesman said: "The more information that comes out, the more questions the Labour Party needs to answer."

A spokesman for Glasgow City Council said he would comment specifically on the situation regarding Paul Green.

He said: "For Glasgow City Council to nominate someone for an honour who has been behind the scale of developments in the city that Mr Green has, is perfectly normal."

Despite the increasing pressure on Alexander, Scotland on Sunday can also reveal that she is being urged by Gordon Brown not to resign, fearing such a move would trigger a "domino effect" of resignations across the UK.

UK party leaders fear that if Alexander - Brown's protege - were to fall on her sword it would add to pressure on Labour's deputy leader Harriet Harman and the Prime Minister himself.

Sources close to Alexander insist she is determined to "crack on" with the job and has been told to "stick it out." But last night there was renewed pressure from within her own ranks amid signs civil war was breaking out in the Scottish Labour Party over the scandal.

Party chiefs and MSPs expressed their "astonishment" at the affair, with one describing the handling of the matter as "daft".

Many now fear that, even if Alexander survives, she will be a "lame duck" leader without the necessary credibility to take on First Minister Alex Salmond.

Yesterday, campaign manager Tom McCabe insisted Alexander would not be backing out. He said: "Wendy is cracking on. People need to get the scent of blood out of their nostrils."