Zarah Sultana at centre of new party row over £800k in donations

Donations being held by Zarah Sultana will be transferred over to Your Party in tranches from this week, Sky News has been told, but the party stand-off remains.

Ms Sultana has sole control of a company holding over £800,000 of Your Party donations following an internal fallout.

Her spokesperson told Sky News £600k would be transferred over in three tranches starting with £200k from Wednesday, and the rest “once the company’s costs, expenses and liabilities are settled in full”.

But a Your Party source told Sky News she should transfer the full £800k worth of donations now.

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It follows a major row over finances behind the scenes of the new left-wing party, which Ms Sultana co-launched with Jeremy Corbyn in July.

At the time, a company called MOU Operations was used to collect donations, with the idea this would be transferred over to Your Party once it was formally registered with the Electoral Commission.

The registration happened on 30 September, but no transfer of funds has been made – despite Ms Sultana stepping in to take ownership of MOU last month after its previous three directors quit.

It is understood MOU is also holding around £500k in fees collected as part of Ms Sultana’s unauthorised membership launch, which caused a major row in September and is now being investigated by the Information Commissioner’s Office.

The Your Party source told Sky News that Ms Sultana has been told Your Party can’t accept that money due to legal risks and accused her of trying to “offload” it.

How did we get here?

Ms Sultana agreed to take over MOU to break a standoff between Your Party and the company’s previous three directors – former Labour MP Beth Winter, former Labour mayor Jamie Driscoll and former South African politician Andrew Feinstein.

The trio set up MOU in April to assist with a new left-wing party centred around Mr Corbyn but resigned on 29 October, claiming the role of holding donations had been “thrust upon” them and raising concerns about a “lack of appropriate governance” within Your Party.

The former directors said they wanted Your Party to take full control of MOU because of worries around liabilities but five of the six founding MPs refused.

Ms Sultana said her stepping in would “bring the chapter to a close” and “these resources will now be used for Your Party, as was always intended”.

Her allies have dismissed “hostile briefings” suggesting she is deliberately withholding the money, insisting she has been conducting “due diligence” before sending it over.

Sky News understands Ms Sultana has been seeking Your Party’s constitution and financial scheme as registered with the Electoral Commission, to help her understand the party’s governing structures.

A source close to her claims there has been an unwillingness to share the documents from within Your Party, so she has requested them from the elections watchdog directly.

It is not clear who wrote the documents and who is controlling access to them – or why one of the party’s founders should not be able to see them.

‘Low trust environment’

However one Your Party source described operating in a “low trust environment” since the membership fiasco, despite public efforts to patch things up,

Senior Your Party figures have accused Ms Sultana of deliberately withholding MOU’s funds for political leverage. Organisers expressed frustration at operating on a “shoestring” ahead of the founding conference at the end of this month.

A spokesperson for Ms Sultana said: “Zarah did not choose to become the sole director of MOU Operations Limited, but was prepared to take on this responsibility to ensure funds are transferred as quickly as possible and preparations for the founding conference can progress.

“As sole director, she is legally responsible for ensuring the company’s costs, liabilities and expenses are settled, and this process may take some time. To ensure funds are available for the founding conference, she will transfer £600k in tranches over the next couple of weeks. The first £200k is scheduled to be sent 12 November.

“All remaining funds will be transferred once the company’s costs, expenses and liabilities are settled in full.”

A Your Party spokesperson said: “We are completely focused on putting together a successful founding conference for our members, so they can democratically decide Your Party’s structures and programme, and Britain can get the socialist alternative it so badly needs. Hundreds of volunteers are working tirelessly on a shoestring budget to make this a reality, a testament to the grassroots power of our mass movement.”