Labour's Libyan Links

Labour party links to the former Gaddafi regime in Libya came under more scrutiny last week.

The Sunday Times reported that a company headed by former East Kilbride MP and former labour defence minister - Adam Ingram - secretly gave a £100,000 donation to a foundation set up by Saif al-Islam - Colonel Gaddafi's favourite son.

Apparently the donation was made around tha same time as the company - Argus Scotland (with Adam Ingram acting as a non-executive chairman) - was awarded a multi-million pound contract in Libya by the old Gaddafi regime.

Saif Gaddafi's foundation was being used to channel a £1.5 million donation to the London School of Economics (LSE) - where the dictator's son (who has since been captured of course) studied for a PhD.

The scandal forced the resignation of the LSE's director - Sir Howard Davies - and the whole murky business is now being investigated by Lord Woolf - the former chief justice for England and Wales.

Now I can't see anything wrong with the government of the day pursuing a policy of bringing Libya in from the cold - in an effort to end its isolation from the rest of the international community.

But when money and politics start to mix - there are important ethical questions to be answered about exactly who is scratching who's back - and why? 

The Sunday Times reported that the Argus Scotland donation was not referred to in its published company accounts, but emerged as LSE officials investigated the source of the £1.5 million Gaddafi donation in 2009 - of which £300,000 was actually received.

Adam Ingarm was reportedly unwilling to respond to questions from the Sunday Times about the Argus Scotland donation - as the newspaper went to print.          

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