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A dispute has emerged within Jeremy Corbyn’s nascent left-wing party over £800,000 reportedly raised by Zarah Sultana, a co-founder of the movement.
The funds were generated through an unauthorized membership scheme launched by Sultana for individuals seeking to join the group, currently operating under the banner of Your Party.
Senior figures have alleged that Sultana is withholding the funds, despite a prior agreement to transfer the sum.
A spokesperson for Sultana stated that she “is in the process of transferring all funds and data” but is undertaking “essential due diligence as part of this process.”
However, the delay has ignited frustration among insiders within Your Party, who assert that the funds are crucial for its founding conference scheduled for later this month. A party source indicated that the event may be “forced to reduce delegate numbers” as a result.
The issues reportedly stem from a division within the party that arose when Sultana initiated a membership portal through the official email account, collecting payments and data from an estimated 20,000 individuals.
The money was held by MoU, a company established in April to manage donations for the developing movement.
Corbyn characterized the emails as “unauthorised” and advised supporters to cancel direct debits.
The membership portal was subsequently replaced, but not before the dispute escalated into legal threats and accusations of a “sexist boys’ club.”
The pair have since reportedly reconciled.
The initial plan was to transfer all funds and data from MoU to Your Party following its registration with the Electoral Commission on September 30th, after which the company would be dissolved.
However, the funds, estimated to be around £800,000, have not yet been transferred.
Last week, the founding board of MoU, which included former Labour mayor of North of Tyne Combined Authority Jamie Driscoll, resigned en masse, leaving Sultana as the sole director.
In a joint resignation statement, the three directors maintained their desire to transfer the funds but claimed that Your Party officials had disregarded questions regarding governance and legal liabilities.
Your Party officials have dismissed MoU’s concerns as irrelevant and accused the company of shifting the goalposts. Officials asserted that they had submitted multiple proposals to move the funds but were ignored by MoU.
A Your Party spokesman said “We are focused on delivering a successful founding conference for our members.
“While this task is made considerably harder by the continued retention of Your Party funds by MOU Operations Ltd, we will not allow anything or anyone to stop this party from going ahead.
“Working-class people need a party which stands up for them.”
A spokesman for Sultana, a co-director of Your Party, said: “Zarah is in the process of transferring all funds and data to Your Party, as she has already made clear publicly.
“Obviously, she has a duty to conduct essential due diligence as part of this process.”
The row marks the latest development in a challenging launch for the party, which has attracted tens of thousands of members but has been plagued by internal disagreements over leadership and even the party’s name.
Sultana has advocated for the party to be named The Left Party, while Corbyn has suggested that the name Your Party could remain.
Members are slated to vote on the official name at a founding conference in Liverpool on November 29.
Despite high-profile clashes, Sultana told the BBC the party was a “40-year project” aimed at “running” the government.
Sultana said she hopes to co-lead the new party with Corbyn, but will “throw her hat in the ring” if members opt for a single leader when the party constitution is agreed at conference.
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Former Labour MP hits back in an escalating row between the would-be founders of new left-wing party.
Zarah Sultana – who was launching the new party with Jeremy Corbyn – accused him overseeing a “sexist boys’ club”.
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