The UK Electoral Commission has received allegations that the Conservative party had an illegal property deal to raise money secretly from a foreign source using a complex real estate transaction connected with its former London headquarters.
The Tories moved out of Smith Square 3 years ago, but they acquired the freehold on the property and an adjoining building, for 15 million GBP that had previously belonged to a British Virgin Islands company Platinum Overseas Holdings Ltd.
In accordance with the documents from the Land Registry, Platinum Overseas Holdings Ltd. bought the freeholds of both properties for 12.27 million GBP in August 2001. One source told the correspondent that BVI company Platinum Overseas Holdings was owned by a group of Middle Eastern businessmen, clients of the Citibank, US.
There has been information that the Conservatives were negotiating to sell the freehold to both properties for 30 milion GBP, however, the perty denies such plans.
Being responsible for monitoring the funding of political parties, the Electoral Commission is investigating this issue but it has not revealed any actual details yet. However, the Commission criticises both Conservative and Labour parties for their secrecy and late reporting of donations.