McSweeneygate: Whistleblower alleges private investigators targeted journalist amid donations controversy

London — Paul Holden, the journalist at the center of the McSweeneygate scandal, says private investigators were hired to undermine his inquiries after he began uncovering new information about Labour Together’s finances. In an interview with The Mail on Sunday, Holden, 42, said the claims tied to the think-tank’s failure to declare more than £700,000 in donations were the trigger for the probe.

Holden told The Mail on Sunday he was 'pretty damn scared' to learn that investigators were looking into him, his family and colleagues – all at the request of Labour Together. 'I could only assume they were digging dirt to discredit me or my research,' he said, adding that the investigators were trying to learn how he was obtaining his information rather than challenge its accuracy.

Labour Together and Josh Simons, a former director of Labour Together who is now a Cabinet Office minister and MP for Makerfield, declined to comment on the claims. Holden’s assertions appear in his forthcoming book The Fraud, which has already prompted the resignation of No 10 director of political strategy Paul Ovenden over remarks about Diane Abbott. The book is billed as an exposé of the machinations surrounding Sir Keir Starmer’s rise and specifically the role of McSweeney’s financial disclosures.

Mr McSweeney left Labour Together to join Sir Keir’s Downing Street operation and is now the Prime Minister's chief of staff. Labour Together was fined £14,250 for late declaration of the donations. Holden argues the failure to declare was not explained by 'human error and administrative oversight' but may have been a deliberate attempt to hide funds later used to boost Sir Keir's leadership bid.

Holden, who is South African-born, said he has spent about 15 years investigating corruption and economic crime and relocated to the UK after probes in his homeland during Jacob Zuma’s presidency. His detailed allegations are set out in The Fraud, a book that has already sparked controversy within the upper echelons of Labour, and he said that no reader would come away with the impression that Morgan McSweeney is a fit and proper person to hold a senior role in government.

The Electoral Commission said Labour Together has proactively raised concerns and taken measures to ensure full regulatory compliance. The watchdog declined Tory requests to reopen its 2021 investigation into the think-tank, stating it found no evidence of other potential offences. The broader questions raised by Holden’s allegations touch on donor transparency and the integrity of the party’s leadership apparatus, including the proximity of fundraising decisions to positions of influence within Labour.

Labour Together and Morgan McSweeney have not publicly commented on Holden’s specific allegations, and Josh Simons did not respond to requests for comment. Holden’s forthcoming book continues to draw attention to what he characterizes as a pattern of strategic management of information and reputational control in contemporary British politics, while underscoring the ongoing debate over the safeguards surrounding political donations and disclosure.