An exclusive private members’ club in London, the Carlton Club, known for funding the Conservative Party, has come under scrutiny for accepting significant donations from companies connected to wealthy foreign nationals prohibited from making direct political contributions. An analysis conducted by openDemocracy reveals that the Carlton Club has contributed over £247,000 to the Conservative Party and its MPs since the last election.
Paradoxically, the club has received more than half of that amount from two companies led by wealthy Swiss, German, and Russian nationals, none of whom are UK citizens. Election law stipulates that only UK citizens can donate to political causes, but loopholes in the system allow these funds to be funneled indirectly through third parties.
One notable donation of £150,000 came from Strandbrook Ltd, a prominent property investment firm based in London. Strandbrook Ltd, owned by German national Henning Conle and his daughter Johanna Conle, controls significant assets, including the historic Shell Mex House in central London.
The Conle family, estimated to be worth £1.1 billion, has also been linked to other prestigious London properties, raising concerns about the origins and motivations behind such donations. Moreover, the company’s intricate ownership structure involves a German foundation, Cartina Stiftung, with connections to offshore entities, making it challenging to ascertain ultimate ownership.
The Carlton Club has repeatedly donated to Conservative Party candidates, often in sums of £5,000 or £15,000, benefiting figures like deputy chair Lee Anderson and former defense minister Sarah Atherton. These donations, combined with the club’s history of hosting speeches aligned with the Conservative Party, underscore concerns about the influence of such “dark money” on political processes.
The UK’s Committee on Standards in Public Life, an independent advisory group, had previously urged then-Prime Minister Boris Johnson to close these loopholes, citing their potential to enable foreign money to unduly influence UK elections. Despite these warnings and recommendations, the loopholes remain unaddressed, raising questions about the transparency and health of the country’s democracy.
Experts and advocates are calling for a comprehensive examination of the issue, led by the Electoral Commission, with some suggesting that donations from unincorporated associations like the Carlton Club should be prohibited altogether. This would help close a significant loophole in party political finance, safeguarding the integrity of the political process and promoting transparency in campaign funding.
As the controversy persists, the need for reform in election finance regulations is evident, but it remains to be seen whether the government will take the necessary steps to address these critical vulnerabilities within the system.
