A significant internal conflict has erupted within the newly formed Your Party, with allies of former Labour leader Jeremy Corbyn publicly challenging co-founder Zarah Sultana over hundreds of thousands of pounds in withheld donations.
The Funding Dispute Intensifies
In a statement released on Thursday, Corbyn alongside MPs Shockat Adam, Adnan Hussain, Ayoub Khan and Iqbal Mohamed revealed that hundreds of thousands of pounds donated to the party "have since remained beyond its reach". The politicians described the situation as "extremely frustrating and disheartening" for supporters who contributed in good faith.
The controversy centres around MOU Operations Ltd, a company established earlier this year by the party's founders to manage donations. According to the statement, only a "small portion" of the funds was transferred to Your Party on Thursday, which the signatories deemed "insufficient".
Rejected Transfer Offer
The dispute became public earlier this week when it emerged that Sultana had offered to transfer £600,000 from MOU Operations Ltd, but this proposal was rejected by Corbyn's allies who accused her of playing "political games" with supporters' money.
Party officials had been seeking approximately £800,000 from the company and had threatened legal action to recover the full amount. Sultana, who recently took sole control of MOU Operations, argued that the remaining funds should be retained to cover potential future legal or administrative expenses.
A spokesperson for Sultana stated on Monday that "Zarah is working to transfer all funds and data held by MOU Operations Ltd to Your Party". They explained that as sole director, she bears legal responsibility for ensuring the company's costs and liabilities are properly settled, a process that "may take some time".
Impact on Party Operations
The funding shortage has severely hampered Your Party's activities ahead of its founding conference scheduled for the end of the month. The statement noted that volunteers have been working on a "shoestring budget" to organise the event, with the party's capacity "severely restricted" without proper funding.
Thousands of ordinary supporters have contributed both time and money to build what the founders describe as "a real alternative to endless cuts and endless war". The current impasse threatens to undermine these efforts as the party attempts to establish itself as a viable political force.
The statement concluded by acknowledging that "building a democratic party from the ground up was never going to be smooth sailing", but suggested that some difficulties were "deliberate acts" rather than inevitable challenges.
Both factions have committed to pursuing a resolution that ensures all donated funds are transferred to the party while addressing outstanding legal matters that complicate the financial arrangement.
