Labour demands Tories ban donations from Lycamobile

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Calls follow investigation by BuzzFeed News that called into question cash practices at O2 MVNO

The Labour Party has demanded the Conservatives stop accepting donations from Lycamobile after an investigation raised questions about the O2 MVNO’s business practices.

Labour MP Jon Ashworth wrote to Tory Party chairman Lord Feldman asking if the Conservatives were aware of Lyca’s cash practices, which involve dropping off bags containing millions of pounds at London post offices, according to BuzzFeed News, who carried out the five month investigation.

Lycamobile has donated £1.3 million to the Conservative Party since David Cameron came to power in 2010, including £500,000 this year.

Labour has now has asked Feldman to confirm Lycamobile is “the sort of organisation you are happy to take donations from”. He added that the Tories should stop taking money from the company until further assurances about Lyca’s business practices have been given.

Ashworth demanded that the Conservatives “confirm what conversations have taken place between the party and Lycamobile to ensure that the business practices revealed by Buzzfeed News are legitimate and provide reassurances that no further donations will be accepted from the company until the necessary investigations are completed.”

During the investigation, BuzzFeed News filmed Lyca employees depositing bags containing more than £100,000 twice a day at Post Office branches across London.

Former director of public prosecutions Lord MacDonald told BuzzFeed the practice was “deeply suspicious”.

Despite repeated Mobile News requests for comment, Lycamobile has remained silent over the accusations.

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