The name lives on as a limited company available as a think-tank-for-hire by big business; organising seminars for pharmaceutical lobbyists, government contractors, supermarket chains and other vested interests aiming to get their hands into taxpayers’ pockets. The glory days of hosting Al Gore meeting Chancellor Gordon a distant memory…

A co-conspirator points out that the Smith Institute, formerly Gordon Brown’s favourite think-tank/slush fund, hasn’t filed the legally required accounts to the Charity Commission due over three months ago. As regular readers will remember, the organisation was slammed by the Commission in 2008 for its political activity. Essentially it was a front group for Gordon’s leadership bid.

It seems that as the main beneficiary of the Sith’s work has now been consigned to history, the money and activities are drying up. Last year’s accounts showed that they were close to £120,000 in the red – a far cry from those heady days when they could afford to pay Ed Balls £89,000 for writing two pamphlets while in transit from being a Treasury SpAd to becoming an MP. It makes you wonder what devastation the missing accounts might possibly be hiding.

The Smith Institute says it is getting back to Guido… hopefully quicker than they file their accounts.

Usually John Lyon rejects complaints in 48 hours or so if he is not inclined to investigate. Why is the Parliamentary Commissioner for Standards taking longer than normal in this case?

1. It could be that John  Lyon is snowed in with complaints about our troughing political class.*
2. John  Lyon could be referring to the scathing Charity Commission report into Bob Shrum’s involvement with Gordon’s other slush fund – the Smith Institute – before proceeding.
3. The Commissioner could be looking for an excuse to not investigate a secret slush fund controlled by the Prime Minister in the sensitive run-up to a general election.

Nevertheless there is prima facie a case to answer, Peter Watt is not some insignificant peripheral figure. The allegation that Gordon Brown kept track of donor’s funds for his own use in an exercise book is not transparent and above board, keeping the details hidden from the person responsible for compliance with the law is just not acceptable and possibly illegal.   Gordon really needs to explain himself, during the last investigation he point-blank refused to answer any questions put to him by the Charity Commission. Where are the records? What is Gordon hiding about the Shrum slush fund? Something smells.

*Harry Cohen is to be fined £65,000 for his fiddles, the socialist fraudster claims it “smacks of class discrimination”.  He should really face criminal charges.

As regular readers will remember, when the Charity Commission reported that The Smith Institute, despite their many failings in terms of political neutrality were not paying the salary of Gordon’s private yank pollster Bob Shrum, Guido will admit to some confusion as to how Brown had managed to wriggle his way out of this. It now appears that Shrum could well have been paid out of this second, secret “fund with no name.” Whatever this fund was being used for it was breaking the rules for personal benefits that MPs must declare. The rules state that MPs must “provide information of any financial interest or other material benefit which a Member receives which might reasonably be thought by others to influence his or her actions.” Unsurprisingly a complaint has been put in to the Parliamentary Commissioner for Standards:

Guido reckons there is a very strong case for an investigation into this murky secretive fund.

It was at the height of the Blair destabilising cash for honours investigation that Guido was sent a document outlining the use of 11 Downing Street by the Smith Institute and the role of that “charity” in furthering Gordon’s ambitions. The note was passed to Guido by an über-Blairite close to No. 10. This was hardly surprising since No. 10 suspected (rightly) the Brownies were stoking the flames of cash for honours, this was essentially a sleaze counter-attack. The note outlined how Gordon got private polling and personal consultants flown in from the States. How they were paid for by cash-for-access meetings in No. 11 involving Brown and his aides under the auspices of the Smith Institute. Balls himself was paid an £89,000 bung by the Smith Institute and is now under scrutiny with the Tories looking to link this payment and others to the unlawful furtherance of Brown’s political ambitions.

Perhaps tonight, over the appetisers, Ed might want to ask Peter who it is he thinks was the cabinet minister who gave a very similar tip to the Tories?

Regular readers will know that this allgation was a central part of Guido’s campaign against the Sith. Essentially the Smith Institute was a slush fund for Gordon’s ambitions. The Tories are now convinced that Ed Balls continued working for Gordon Brown when he was on the charity’s payroll. They have been trying for six months to ascertain whether or not he continued to have access to the Treasury with a security pass. Guido has other evidence that Ed Balls continued to act as Gordon Brown’s political adviser during th 2004 / 5 period when he was being paid by the charity. Not only Balls but also Tony Pilch, a former SpAd close to Balls, and Bob Shrum during the same over-lapping period were working for the Smith Institute.

According to the Sunday Times “the Tories are submitting a complaint to the Electoral Commission and John Lyon, the parliamentary commissioner for standards. They want Brown to be challenged over whether Balls had a pass.”

Guido understands that the Electoral Commission is already making inquiries, including in the United States, following a complaint made last July (after the Charity Commission report condemned the Smith Institute for partisan activity) by the Sunlight Centre for Open Politics. That letter of complaint (here) focused on the activities of U.S. pollster Bob Shrum. Shrum was paid by the Smith Institute to advise Gordon Brown, these slush payments are a serious breach of electoral law.