Searchlight responds to the BNP

The BNP was quick to deny the allegations presented by Jon Cruddas MP in the House of Commons today. Searchlight now responds to the BNP and in the process stands by its allegations. (It must be stressed that our 22-page document contains many more allegations of financial mismanagement and irregularities. Much of these will be revealed in the January issue of Searchlight)

Allegation: “The BNP’s 2006 accounts have still not been submitted to the Electoral Commission, more than five months (so far) after the due date.”

BNP response: This is not illegal and is allowed for in terms of legislation. The delay was caused by the failure of former head of administration, Kenny Smith, to provide receipts for expenditure under his direct control. The accounts have been with the auditors for the last two months and are due to be signed off on 21 December.

Searchlight response: We never said it was illegal for the BNP not to have submitted its 2006 accounts, only that the BNP had not done so and that failure incurred a fine. The failure is now conveniently now blamed on Kenny Smith’s failure to provide receipts. The BNP has had months to obtain the receipts for 2006. And the accounts have not been with the auditors for only the last two months. The BNP has been saying since July that the accounts are with the auditors.

Allegation: “The BNP failed to report a donation of £5,315 in the period 1 July 2007 to 30 September 2007 in contravention of the Political Parties, Elections and Referendum Act 2000.”

BNP response: Mr. Cruddas’ information is, as usual, out of date and factually incorrect. This is a minor issue and an amended Donation Returns has been sent and received by the Electoral Commission, who have expressed their satisfaction in this regard. There was clearly no intention to conceal the donation as it was announced, along with the name of the donor, on one of the BNP’s web sites at the time.

Searchlight response: The donation of £5,315 is now on the Electoral Commission website; it was not there at the weekend. Obviously the BNP had to make the late return after we pointed out the failure on our website and in the magazine. Correcting the failure doesn't mean the failure did not happen. Some oversight, the party's largest donation in the quarter and one of only two reportable donations.

Allegation: “BNP financial records were shredded at the home of the party’s former national treasurer in 2004.”

BNP response: No party financial records were shredded. They are held in electronic format, and cannot be shredded. This is pure fantasy on Mr Cruddas’s part.

Searchlight response: Shredded records? We have the physical evidence. And it is not possible for all accounting records to be held in electronic form. Auditors always want to see the paper supporting records, bank statements, invoices etc.

Allegation: “The BNP has solicited donations from overseas to an organisation by the name of Civil Liberty, which Searchlight considers is merely a front organisation set up to circumvent the prohibition on donations to political parties from individuals who are not registered to vote in the UK.”

BNP response: John Walker, BNP Treasurer, can categorically state that not one penny has been received by the BNP from Civil Liberty or any other ineligible body.

Searchlight response: On 21 May 2005 Mr Griffin spoke at an international conference in New Orleans organised by David Duke, the former Ku Klux Klan leader. Mr Griffin’s theme was how to build a successful nationalist political movement that can win electoral support. He told the audience that the USA was not yet ready to build a nationalist party but was only at the stage of laying the foundation stones. However, Americans could play a role by throwing money at the BNP. Actually they could not, he continued, because it is against the law, but they can throw money at Civil Liberty, an organisation that helps members of the BNP. That is within the law, Mr Griffin said, adding that “the law is an ass”.

Civil Liberty is run by Kevin Scott, the BNP’s North East organiser, and operates from the same post box address as the BNP in the North East. The June 2005 issue of British Nationalist, the BNP’s members’ bulletin, also requested overseas donations to Civil Liberty, saying it “exists to financially support legal actions on behalf of British nationalists like Nick Griffin and Mark Collett”, who at that time were awaiting trial on race hate charges. However, in another indication of its true purpose, the bulletin also presented Civil Liberty as the successor to American Friends of the BNP.

Allegation: “The BNP attempted to earn insurance commission by means of an insurance entity that was not authorised by the Financial Services Authority and there were serious doubts whether the activity was exempt from the requirement for authorisation”

BNP response: This was a private initiative by a now former BNP official which was shut down within a week. The BNP was never the beneficiary of any such privately held scheme.

Searchlight response: The BNP wanted members to take out life insurance and benefit the BNP both from the lump sum on death and through the introduction commission. The only reason that the BNP never actually received anything is because we exposed it very quickly. The BNP also imply that they closed it down within a week when it was only closed down because of our exposure, after which the financial intermediary David Boulton, withdrew his services, Note also how the BNP conveniently blames Steve Blake, as if he was not acting on behalf of the BNP at the time.

Allegation: “There is evidence that the BNP financed its insolvent position in 2006 by a failure to pay sums owed to HM Revenue and Customs in respect of Pay As You Earn (PAYE) and value added tax (VAT).”

BNP response: All tax bills for that year have been paid and are up to date. This is another pure fantasy, based probably on Mr Cruddas’ wishes rather than any fact.

Searchlight response: The evidence that the BNP financed its insolvent position in 2005 and 2006 by a failure to pay sums owed to HM Revenue and Customs in respect of Pay As You Earn (PAYE) and value added tax (VAT) is that the balance owed to HMRC at 31 December 2005 was extremely high compared to salaries and turnover subject to VAT. We accept that the liability might have been paid since then.

Allegation: “There are allegations that the BNP has paid workers in cash to avoid tax and national insurance contributions and to enable them to claim state benefits.”

BNP response: The BNP denies that it pays its staff in cash. Minor day expenses may be covered in this way, but no full time salaries are paid in cash.

Searchlight response: There have been persistent allegations. We refer people to the investigation carried out by Barrister Adrian Davies and accountant Keith Boyall into the BNP finances in 2000. There was particular concern over £1,500 paid to Tony Lecomber out of party funds. It was initially claimed that this was reimbursement for a printing bill that Lecomber had paid on the party's behalf. However, it now appears that it was no such thing, but rather a means of supplementing Lecomber's income without declaring it to the tax and benefit departments. Davies and Boyall concluded: "Nick [Griffin] might very justifiably be reproached for dangerous and illegal risk-taking which could easily cause serious political embarrassment to the Party".

Allegation: “The BNP claims to have spent at least £70,000 on printing equipment in 2005, but no such expenditure is shown in the accounts.”

BNP response: This is a lie. The costs of the printing machines are clearly recorded in the party records.

Searchlight response: The BNP really are lying about this. On 1 April 2005 John Walker, the BNP treasurer, appealed on the BNP website for further donations towards the party’s general election. He stated: ““Last month we raised the £75,000 needed to run our own print shop operation to produce all our general election material in house. The work is now fully underway and on schedule with shifts of party activists working round the clock to produce the millions of election addresses needed.” Yet the 2005 accounts show only £51,671 spent on buying equipment of any sort in the whole year.

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