Nigel Farage faces investigation into undeclared £5m 'gift' from crypto billionaire
If Mr Farage is found to have breached the rules he could face being suspended from the Commons
Nigel Farage is to be investigated by the Parliamentary Standards Watchdog over an £5million undeclared 'gift' from a crypto billionaire.
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The Reform UK leader received the donation weeks before he announced he would stand as a candidate in Clacton ahead of the 2024 General Election.
Mr Farage initially claimed the payment did not need to be declared and that he had not broken any rules, with the fee intended to cover his security costs.
The Reform UK leader had previously claimed his tax-payer funded security had been slashed posing a threat to his welfare, with fellow Reform UK member Zia Yusuf insisting "Mr Farage's security detail had been cut by 75 per cent".
Mr Yusuf added that private donors had stepped up to cover the difference.
Mr Farage claims the donation, handed to the party by billionaire Christopher Harborne, does not need to be declared given it took place before he became an MP.
However, Parliamentary rules state any benefits received 12 months before taking office should be declared, depending on whether the 'gift' was for political or personal purposes.
A spokesman for Reform UK said:“Mr Farage’s office is in communications with the Parliamentary Commissioner for Standards.
"He has always been clear that this was a personal, unconditional gift and no rules were broken.
"We look forward to this being put to bed once and for all.”
LBC understands that the Parliamentary standards commissioner Daniel Greenberg has opened an investigation into Nigel Farage, under Rule 5.
The Conservatives had previously written to the standards watchdog asking if the Reform UK leader had broken the rules by not declaring the £5m gift, which it is now investigating.
The Commons code of conduct states that new MPs must declare gifts or donations received in the 12 months before entering Parliament.
However "purely personal gifts or benefits" from family or commercial loans do not have to be registered.
If Mr Farage is found to have breached the rules, he could face suspension from the House of Commons.
A suspension of more than 10 days could lead to a recall petition, which could trigger a by-election in his Clacton seat.
Other possible sanctions for breaching the code of conduct include a written or oral apology or even expulsion from the Commons in the most serious cases.
Mr Farage was previously found in January to have failed to register £384,000 in financial interests on time.
But Standards Commissioners Daniel Greenberg concluded the breach had been "inadvertent" with Mr Farage allowed to update his register via the "rectification" process without punishment.
Asked about the gift from Christopher Harborne on Sunday, Reform's deputy leader Richard Tice insisted it was a personal gift and that Mr Farage had complied with the rules.
“Nigel was not involved in politics at the time. He’s complied with all the laws,” Mr Tice said.
Brushing off the speculation surrounding the donation, Mr Tice - who also faces allegations that he failed to pay £100,000 in corporation tax to the benefit of his investment company, which then donated to Reform - added that millions of voters would be "enormously grateful" for the money.
“Frankly, £5m is probably not enough,” he said. “The dangers to his life grow. It’s absolutely vital we keep Nigel safe. The state wouldn’t provide the funding, and this was a personal gift based around safety and security.”
Mr Farage previously said the donation followed his unsuccessful attempt to secure Home Office-funded security in 2019 and after Mr Harborne became concerned about his level of protection when a milkshake was thrown at him.
It comes after Reform cruised to victory in last week's local elections, gaining more than 1,400 councillors, with the party performing well in many former Labour strongholds.
A jubilant Mr Farage told LBC's Nick Ferrari at Breakfast that Reform was "truly national party", competitive in both traditional Labour strongholds and Tory-dominated areas in the south east of England including Essex and Suffolk.