Labour donor Willie Haughey in money for favours row

Jon Ungoed-Thomas and Mark Macaskill & , : {}

NINE days ago Willie Haughey, one of Labours greatest donors and an fan of Gordon Brown, was speckled at a tip predicament assembly in a beer hall car play ground in the south of the Glasgow. He was flanked by dual smartly ready to go businessmen. Nearby, a plump man sat in a car, obviously agitated.

Haughey, the Scottish businessman, who built his 100m happening out of a refrigeration business, was in a staid mood as he spoke to the dual men. The result was clear: the career of Steven Purcell, the plump man in subject and one of Labours brightest stars, was over.

Purcell, 37, fearful and tearful, had already stood down as legislature personality of Glasgow, Britains fourth largest city. Friends had urged him to stay on as a councillor and reconstruct his career.

Haughey, who has given some-more than 1m to Labour, and the dual alternative men consecrated a some-more extreme option. It would be voiced after that Purcells career in internal governing body was over. By afterwards he will be out of the country, pronounced one of those present.

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Purcell has not been seen since. There are rumours that he headed to Haugheys home in Florida, or to Dubai, or Australia, or even the Cayman Islands in the Caribbean.

Since last May Purcells career had been on a knife-edge after dual military officers him in the city chambers and warned him that he was a probable aim for extort given of his heroin habit.

Glasgows fortunes have risen over the past decade, interjection in piece to Browns philanthropy with the open finances. Inevitably, intelligent commercial operation total such as Haughey stood to good from open zone payouts and contracts.

Even in Glasgows internecine governing body there was sold fluster about the attribute in between Purcell and Haughey. At slightest one legislature source who has oral to The Sunday Times deliberate that Haughey was given inapt entrance and that people who knew him were given legislature jobs or promoted.

I never favourite it, pronounced one source last week. But I never found the smoking gun.

Police have been sensitive and have done primary inquiries, but there is no grave investigation.

This week end there were calls for a examination of Purcells decisions as personality of Glasgow city council. Politicians and kinship bosses are perfectionist an eccentric inquiry.

The Sunday Times has determined that Haughey, 53, benefited out of open supports from a array of decisions done during Purcells career in internal politics.

Purcell was brought up in Glasgows deprived Yoker area and worked for a internal bank after withdrawal school. He became a councillor in his early twenties and at the proposal age of 32 was head of the council, obliged for a 2.2 billion bill and 37,000 employees.

He was noticed as one of the new era of modernising legislature leaders. Tony Blair, the former budding minister, called him a idealist county personality and he seemed unfailing to stick on the ranks of Glasgow politicians who have reached the inhabitant stage.

Like Purcell, Haughey is a internal success story. He built a medium refrigeration supply organisation in to City Refrigeration, one of the citys greatest companies. His celebration faithfulness and commercial operation success were recognised: Brown non-stop a new domicile of Haugheys association in the Gorbals in November.

Haughey and Purcell initial worked together at Scottish Enterprise Glasgow (SEG), a quango chaired by Haughey directed at enlivening the expansion of internal business. One of the firms given await was Haugheys own company.

Haughey perceived 970,000 of await from SEG. It was piece of a 17m remuneration and relocation package for the domicile of his Glasgow business, that was in the trail of a programmed main road due to be built by the Scottish government, Glasgow city legislature and dual alternative councils.

He owned dual properties on the due track that he had paid for for 1.3m. The eccentric valuer offering 7.4m for the properties.

Haughey reportedly longed for Jack McConnell, afterwards Scotlands initial minister, to meddle as negotiations with the valuer came to a delay in Dec 2003.

That month Haughey donated 330,000 to Labour. The suggest was subsequently lifted to 13.3m. McConnell denied any division in the eccentric valuation.

In early 2004 Haughey hoped to get an additional welfare of open supports from SEG. The office worker could not, however, be the authority of the house assembly to authorize the plan to give him scarcely 1m given of the dispute of interest. Instead, Purcell turn authority and authorized the deal.

By this time Purcell had obviously tender Haughey. When Charlie Gordon, the prior legislature personality who is right away a Scottish MP, was suspended in a manoeuvre in Apr 2005, Haughey permitted Purcells care at the back of the scenes.

You have to assimilate that you would not be the Labour personality at Glasgow city legislature but carrying the await of Haughey, pronounced one Labour source. He bankrolls the party. Purcell was in hock to Haughey as the rest of Scottish Labour is.

There was, however, regard about the border of Haugheys influence. While Purcells early career showed promise, he was in most ways a technocrat and there were concerns that he was unduly shabby by Haughey. They customarily spoke at slightest once a week, according to one source.

There were additionally concerns that Purcell was assisting to partisan and foster formulation officials with links to Haughey.

There was a network of people who knew Haughey and you never knew who they were operative for entirely, pronounced the official.

One of Haugheys companies had a stipulate on condition that heavy-duty vehicles for City Building, a construction a whole association combined out of the councils former construction services.

Another of Haugheys companies was shortlisted for a partnership understanding to sell off legislature properties value 100m and the legislature additionally authorized his 120m plan for a residential and commercial operation development. Both projects were suspended given of the monetary downturn.

Purcell had been underneath vigour given being warned by military that he was a extort risk given of his drug habits. On Friday, Feb 26, he pennyless down. He quiescent as personality 3 days later.

In a unhappy turn to the story, on the same day that Purcell is believed to have left the country, one of his close friends, Danus McKinlay, 18, collapsed outward the city chambers. He died a short time later. It is accepted the Labour celebration romantic was a diabetic and asthma sufferer.

Haughey believes he has zero to fright if the calls for an exploration or eccentric review are granted. He pronounced he in use about 1,100 people in Glasgow and the relocation package from SEG had helped to keep jobs in the city.

He pronounced his stipulate with City Building represented a fragment of his companys turnover and it was the usually stipulate he had with the council. He pronounced alternative decisions in his foster had not resulted in developments and he did not have any close links to any one in the councils formulation department.

He said: I have never asked any one for a favour. Ive never asked any one to step in on my behalf. He pronounced that he spoke usually intermittently and that was in his genius as an mercantile confidant to the council.

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