 Ms Harman insists that she acted in good faith |
The Electoral Commission has asked Harriet Harman to explain how she paid for her successful campaign to become Labour's deputy leader after BBC Newsnight revealed substantial loans were taken out.
The following statement was issued on Ms Harman's behalf.
The Harriet Harman for Deputy campaign has continued to raise money since her election as Deputy Leader because it spent more on the campaign than has so far been raised. Although the campaign only attracted registerable donations (those exceeding �1,000) from 14 donors, she attracted more than 143 smaller donations from individuals and small groups throughout the country.
We spent �96,421.71, and we raised �73,613.00. There is a shortfall of �22,808.29, which has so far been met by a loan to the campaign from Harriet Harman.
In order to launch the campaign, Harriet Harman took out an overdraft for �10,000 from the NatWest Bank. This was registered with the Electoral Commission on 3 October 2006.
The Harriet Harman campaign paid off that overdraft from money raised. Harriet Harman then made a loan to her campaign through a �40,000 extension to her and her husband's household mortgage with the Halifax, which was taken out on 6 February 2007.
Definitive advice
Earlier this year, Baroness Gale of Blaenrhondda, the campaign treasurer, was told by the Registrar of Members' Interests that Harriet Harman did not need to register such credit facilities with the Register of Members' Interests. This has been confirmed today.
The Harriet Harman campaign was under the impression that she did not need to register her mortgage with either the Electoral Commission or the Register of Members' Interests.
Mike Foster MP, campaign agent for the Harriet Harman for Deputy campaign, spoke to the Electoral Commission today, to ask whether the contribution from the mortgage extension needed to be registered. The Electoral Commission considered it would not be appropriate for them to give definitive advice until notified in writing.
Further to this advice, Harriet Harman has written to the Electoral Commission to clarify the situation today and if the Electoral Commission thinks it necessary, to register the contribution from the mortgage extension.
The campaign has cancelled the fundraising event that was planned for 5 December. 
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