(Bloomberg) -- The man in charge of election fundraising for the Labour Party has been making recommendations for public appointments, according to people familiar with the matter, an arrangement that prompted party staff to raise concerns with top officials about the appearance of a conflict of interest.
Waheed Alli — a Labour lord, donor and TV mogul, who was named Labour’s chair of general election fundraising in 2022 — has been working with senior officials since early this year to draw up a list of candidates for posts due to come open during the Parliament, according to the people. Alli dubbed the project Operation Integrity, said the people, who asked not to be named discussing sensitive internal matters.
While Labour staff raised concerns with senior party figures about the same person soliciting donations and advising on appointments, he remained involved in both areas following the complaints, according to one of the people. His advice extended to discussions of roles in Prime Minister Keir Starmer’s Cabinet, according to another person familiar with the matter.
Asked repeatedly about Alli’s potential involvement in public appointments, Starmer’s civil service spokeswoman said he had been “involved in transition work,” adding that “decisions on public appointments are made by ministers and government departments.” She did not deny that his work may have touched on public appointments, but referred further questions to political aides.
A Downing Street official had earlier said that appointments were made in line with requirements and that Alli played no part in this or in Cabinet formation, which is a decision for the prime minister. The official said they weren’t aware of any complaints against Alli and didn’t recognize the name Operation Integrity.
Attempts to reach Alli by email and at his office in the House of Lords on Thursday were unsuccessful.
Starmer promised in a speech in January to wage a “total crackdown on cronyism” if his party got back into government. He has repeatedly pledged to restore confidence in politicians after ousting the Conservative Party in the July 4 elections.
The Tories often faced criticism of favoring wealthy backers during their 14 years in power. Last year, Richard Sharp resigned as head of the BBC after an official inquiry found he had failed to fully to disclose helping to arrange an £800,000 ($1.1 million) loan for then-Prime Minister Boris Johnson while applying to lead the national broadcaster.
Alli’s position in the Labour Party has come under scrutiny in recent weeks after the Sunday Times reported on Aug. 24 that he had a pass to access secure facilities in Downing Street, despite having no official role in government. He hosted a “thank you” reception for party donors in the rose garden at No. 10, the newspaper reported. Starmer said in a news conference afterward that Alli was involved in “transition work,” which was now completed, and has returned his pass.
Public appointments, such as non-executive chairs of government departments, or the head of His Majesty’s Revenue and Customs, the UK’s tax body, are meant to be chosen by an “open and transparent” public process, according to the Governance Code on Public Appointments. The posts are publicly advertised before being ultimately appointed by ministers, although the Institute for Government, an independent think tank, has previously warned that the system is “vulnerable to abuse.”
It’s unknown whom Alli has recommended for the list of potential appointees or whether any of his nominees have received positions.
Alli — a co-creator of the Survivor television franchise appointed to the House of Lords by then-Prime Minister Tony Blair in 1998 — has both helped Labour raise a record amount of funds and supported its politicians with his own money. He has provided tens of thousands of pounds to subsidize the offices of Labour officials while they were in opposition, including giving Starmer £16,200 for “work clothing” in April and allowing Deputy Prime Minister Angela Rayner to use a New York apartment for a “personal holiday” around New Year’s Eve.
Earlier in August, Politico reported that the Treasury had failed to tell the civil service watchdog that former banker Ian Corfield donated more than £20,000 to Labour campaign accounts, including Chancellor of the Exchequer Rachel Reeves, while submitting his name for a paid post. He has since moved to a temporary and unpaid advisory role helping to organize the government’s investment summit, media including the Times newspaper have reported.
The Conservative opposition has seized on the revelations to accuse Starmer of hypocrisy, after promising “no more VIP fast lanes, no more kickbacks for colleagues, no more revolving doors between government and the companies they regulate.” On Tuesday, former Chancellor Jeremy Hunt pressed Reeves in Parliament on whether she disclosed Corfield’s £5,000 donation to her last year before his appointment as a director.
“Why is cronyism wrong under the Conservatives, but acceptable under Labour?” Hunt asked. Reeves accused her predecessor of having a “brass neck” to question the ethics of another party.
--With assistance from Alex Morales.
(Updates with comment from 10 Downing Street in fourth paragraph.)
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