Labour minister admits he failed to declare funding

"How on earth did he manage to get this so dramatically wrong?"

Chris Grayling, Conservative work and pensions spokesman

A British minister on Thursday admitted failing to declare a chunk of funding for his bid to become the ruling Labour Party's deputy leader, threatening fresh embarrassment for British Prime Minister Gordon Brown.

Work Pensions Secretary Peter Hain said he had not disclosed £103,000 (US$202,000) given to the fighting fund for the race last year in which he came fifth out of six candidates.

In a statement, he explained the situation by saying he had given the deputy leadership bid in May and June "second priority" to his role at the time as Northern Ireland Secretary.

Labour repeatedly found itself in hot water over political funding recently and the main opposition Conservatives said Brown "has some serious explaining to do" in the wake of the latest revelation.

Former minister Tony Blair's final months in office were dogged by the "cash for honors" row over allegations that party financial supporters were rewarded with seats in the House of Lords unelected upper chamber.

Two his closest aides were arrested during a police investigation but no one was charged.

Brown any knowledge of the donations and said a review would be set up.

Hain his campaign had had to raise extra cash after the end of the deputy leadership contest, triggered when John Prescott said he would step down alongside Blair, when unpaid invoices emerged.

He found out in November that these had not been declared within the required timescale and "immediately" told the Electoral Commission, he said.

"I very much regret that these reports were not made on time," Hain said. "I should have given higher personal priority to the day-to-day administration and organization of my campaign."

Hain previously said that he had failed to register a £5,000 campaign donation in November.

His latest announcement was labeled "quite extraordinary" by Chris Grayling, the opposition Conservative work and pensions spokesman. It showed "breathtaking incompetence," he said.

"How on earth did he manage to get this so dramatically wrong?" asked Grayling. "Gordon Brown now has some serious explaining to do about all of this."

"After the events of the past two months, it looks as if he and his senior colleagues have a complete disregard for the rules," he said.