Tories hit back over yacht claims

21.10.08

Senior Tories were dragged into the furore over Lord Mandelson's stay on a Russian billionaire's yacht.
A friend of the new Business Secretary revealed that George Osborne and David Cameron's chief fundraiser Andrew Feldman also spent time on the Queen K this summer.
It was reported that the possibility of receiving a £50,000 donation from Oleg Deripaska - reputed to be Russia's richest man - was discussed.
The claims were made in a letter from Nathaniel Rothschild - an acquaintance of both Mr Osborne and Lord Mandelson - to The Times.
Mr Rothschild said that on the yacht, which was moored off Corfu, Mr Feldman suggested the oligarch could channel cash through one of his British companies.
Accepting donations from overseas residents is illegal, as is using a British company as a proxy to disguise an impermissible donation. But a Tory spokesman strongly denied the claims, and stressed that the party had not accepted money from Mr Deripaska.
"The allegations made in Mr Rothschild's letter are completely untrue," he said. "Both Andrew Feldman and George Osborne deny absolutely that they attempted to solicit a donation from Oleg Deripaska. Nor did they suggest a method by which he could conceal a donation via a British company.
"They spent a short period of time on Mr Deripaska's boat at the invitation of Mr Rothschild. Donations to the Conservative Party were not discussed with Mr Deripaska."
Conservative sources said Mr Rothschild had approached the party later and suggested that Mr Deripaska could give money, but the offer had been refused. The sources accused Mr Rothschild of changing his story when challenged.
The letter sent by banking heir Mr Rothschild - who was at Oxford with Mr Osborne and has strong links with the Tory Party - alleged that the shadow chancellor and Mr Feldman went on board Mr Deripaska's yacht "to solicit a donation".