In an angry letter delivered to the commission on Friday night, Ken Maginnis, the UUP treasurer, has accused the body of “conspiring to destroy” its heritage. UUP sources say that the money in the account was mainly used for the upkeep of an office in America and was introduced into party accounts in 2005.
Earlier this year The Sunday Times revealed that the UUP had another secret bank account containing £50,000. It had been donated to the party in the 1990s but had not been declared to auditors as legally required.
It is understood that the PSNI has now completed an investigation of this account and concluded that there are no grounds for a criminal investigation.
The party’s difficulties have been compounded by the suspension of Will Corry, chief executive, on full pay for undisclosed reasons. These latest developments will overshadow a crucial executive meeting set for Friday. It will provide the first opportunity for many party members to air their views on the controversial decision of the party leadership to accept David Ervine, leader of the Progressive Unionist party, into its assembly group. The PUP is the political wing of the UVF.
The decision has prompted two councillors to resign from the party and Lady Hermon, the UUP’s sole MP, is demanding that the links with Ervine be cut.
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Maginnis said the Electoral Commission’s decision to call in the police was “precipitate” and smacks of “bully-boy tactics”. He accused the commission of setting out to damage the party and has demanded an explanation. In a letter to Hillary Mundella, the commission’s director of operations, he expresses outrage at “the grossly unfair and profoundly vindictive approach of the Electoral Commission on this matter”.
In a separate development, Corry has been suspended on full pay for undisclosed reasons. A party spokesman said last night that Corry was in Spain attending his daughter’s wedding and that no further comment would be available.
Corry’s predecessor, Lyle Rea, left his post after complaining on two occasions about the party’s financial records and accountability. Some party sources say Corry had also expressed reservations.
The Ulster Unionist leadership points out that the sum of the money involved in the second account is small and that it was not used for electoral purposes. It believes the commission’s action is excessive. Maginnis has accused the body of a “deliberate plan to damage Ulster Unionism”.
Maginnis has asked for a meeting with Peter Wardle, the commission’s chief executive, and Sam Younger, its executive chairman.