Labour Party faces bankruptcy amid antisemitism allegations

NEC members are worried that they might have to personally pick up the bill for these hypothetical legal battles if and when the EHRC hands down a negative decision next year.

By ZACHARY KEYSER
The leader of Britain's opposition Labour Party, Jeremy Corbyn, delivers a speech in Manchester, Britain, March 22, 2018. (photo credit: REUTERS/PHIL NOBLE)
The leader of Britain's opposition Labour Party, Jeremy Corbyn, delivers a speech in Manchester, Britain, March 22, 2018.
(photo credit: REUTERS/PHIL NOBLE)
Members of the National Executive Committee (NEC), the governing body of the UK Labour Party, have privately expressed concern that the Equality and Human Rights Commission's (EHRC) antisemitism probe could effectively bankrupt the party if the watchdog hands down a negative ruling, according to a report by The Independent.
The report states that the main point of contention was discussed during a recent NEC meeting. Members of the executive are worried that a bleak determination by the commission proclaiming improper handling of antisemitic abuses within the Labour Party could open them up to a financially crippling amount of lawsuits from former members of their party, ending in considerable damages going to the plaintiffs of many these cases.
Many members of the NEC are worried about who will be held financially responsible for the hypothetical scenario. "Party officials and allies of Jeremy Corbyn"  promptly "shut down" the discussion at the meeting after some wondered if the committee had a strategy in play for handling the legal fees for litigation proceedings and possible settlements awaiting them on the other side of the commission's verdict, according to the report.
Labour has already struggled financially this year, reporting losses of nearly 655,000 pounds sterling this year as opposed to a 1.7 million pounds sterling gain in party sponsorship the year before, mainly due to the loss of recent membership. The party's finances could be further damaged if it is forced to enter into a general election later on in the year, according The Independent.
Britain's equality watchdog launched a formal investigation earlier this year to determine whether Jeremy Corbyn's Labour Party has discriminated against, harassed or victimized people because they are Jewish - as well as failing to protect Jewish members of their party at the time of inquiry. Nine lawmakers quit the party in February, citing the leadership's handling of the accusations, as well as its Brexit stance, as their reason for leaving.
The report stated that a considerable amount of members of the committee have been asked to provide evidence to the inquiry. Now, a number of NEC members are worried that they might have to personally pick up the bill for these hypothetical legal battles if and when the EHRC hands down a negative decision next year.
An unnamed NEC member told the British newspaper: “There have been concerns raised about who is legally responsible for the Labour Party. Some of us are worried about this. The grown-ups on the NEC who do not have the backing of the trade unions are all concerned. We don’t know what’s happening.
“I don’t think it’s occurred to most of the NEC that there could be financial implications, but it has to some of us. We’ve raised the question but haven’t had an answer.”
The committee member concluded by telling The Independent that in his opinion there is "no basis" to have confidence that the Labour Party would be able to financially cope with whatever the EHRC decides.
Another unnamed member familiar with the subject told the British publication: “There are fears that if the EHRC goes against the party then individual victims will have the right to go for damages from the party, and who knows where that ends up – nobody can be sure because there’s no precedent for it.
“Nobody quite knows what the liability is for the individual NEC members. If they are liable then it makes it even more damaging. Councils all around the country are having to borrow money to pay victims of historic sexual injustice. The danger is that the Labour Party will have to do the same if it is subject to victim or class action, having been found to be institutionally antisemitic.”
When the EHRC launched their probe into the Labour Party, select members of the NEC and Corbyn's team drafted the response letter to the commission, which was not shared widely to all committee members before being submitted to the watchdog and its contents have still gone undisclosed to this day.
“We don’t know whether the party has made a very solid, sound presentation to the commission or the complete opposite. There is a total ignorance of what has been said on behalf of the party," another unnamed NEC member told The Independent. “Most of the NEC don’t trouble themselves about these things. They haven’t worked out that they will have, potentially, as individuals, a legal responsibility.”
Labour reportedly has given no comment to The Independent in regards to possibility of individual members of the NEC being held financially responsible and liable for the Labour Party after the EHRC's decision is passed down next year.


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