Jersey base for Tory loan trust

Tuesday 28th March 2006, 12:00AM BST.

JERSEY became entangled in the furore over loans to the UK’s major political parties at the weekend when it was revealed that the Conservative Party was loaned £2 million by an Island-based trust to fund a last-minute general election advertising campaign.

Both The Times and Guardian newspapers reported the secret loan from Morain Investments and The Times said the identity of the lender was known to at least the Tory party’s treasurer and chairman.

Although the news was described as ‘unwelcome’ by Chief Minister Frank Walker, he said there was clearly nothing ‘improper, illegal or untoward’ about what had taken place.

He said the Labour and Conservative parties had accepted loans from a variety of donors both from within the UK and elsewhere.

‘This is bound to happen when political parties are seeking to raise money to fight elections,’ he said.

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