LONDON, May 14 (Reuters) - Britain's parliamentary watchdog said on Thursday it had launched an investigation into Nigel Farage after the Reform UK leader did not declare a 5 million pound ($6.75 million) gift from a cryptocurrency donor.
Farage's anti-immigration party, the biggest winner in last week's local elections, had said on Wednesday it was in talks with the Parliamentary Commissioner for Standards over the donation, and said no rules had been broken.
"He (Farage) has always been clear that this was a personal, unconditional gift...," a party spokesman said. "We look forward to this being put to bed once and for all."
The commissioner's website confirmed that Farage was under investigation over a possible "failure to register an interest", without elaborating.
Farage has said he accepted the donation from a Thailand-based billionaire and crypto investor, Christopher Harborne, to pay for his personal security before he announced his candidacy in the 2024 national election that brought him into parliament.
He said it was not a political donation, but rival political parties in April accused him of breaking rules, which require members of parliament to declare donations received in the year preceding an election within one month of taking office.
Opponents say the funding from an overseas billionaire demonstrates a gulf between the image that Farage cultivates as a man of the people willing to confront Britain's establishment, and his dependence on wealthy donors.
If the investigation finds Farage committed a serious breach of parliamentary declaration rules, he could be suspended from the House of Commons for a period of time. A suspension of 10 days or more could trigger a recall petition, potentially forcing him to stand in a special election for his seat.
INCREASED SCRUTINY OF FUNDING
Reform has topped every national opinion poll since early last year, prompting increased scrutiny of the party's sources of funding.
About two-thirds of Reform's funding last year came from Harborne, Electoral Commission data showed.
Anna Turley, the chair of the governing Labour Party, said Farage had refused to answer legitimate questions.
"It’s one rule for them, and another for everyone else," she said.
Reform's deputy leader, Richard Tice, said last weekend that voters already knew about the gift and had still chosen to vote in large numbers for the party, which made sweeping gains in elections for local government in England and devolved parliaments in Scotland and Wales.
Before the 2024 election, Farage had said he did not intend to stand as a candidate. He changed his mind about a month before the vote.
($1 = 0.7406 pounds)
(Reporting by Muvija M, writing by Sarah Young and Andrew MacAskill, editing by William James, Kate Holton and Gareth Jones)
