Labour has formally written to the Conservatives to raise concerns over donations made to the Tories by Lycamobile after it was alleged the company had been involved in suspicious financial activities.
Jonathan Ashworth, a Labour MP for Leicester South, wrote to Lord Feldman, the Conservative chairman, to request clarification on whether "checks have been carried in relation to Lycamobile and confirm that you are satisfied that this company is the sort of organisation you are happy to take donations from".
The letter followed an investigation by BuzzFeed into Lycamobile, which found bagmen allegedly dropping off rucksacks stuffed with hundreds of thousands of pounds twice a day at Post Offices across London.
Lycamobile has donated over £1.3m to the Conservative party since Prime Minister David Cameron came to power, and £500,000 this year alone. The report suggested internal emails between Conservatives show that the party accepted a large donation from Lycamobile just days after its compliance department raised concerns about chaotic accounting in 2012.
Ashworth has now asked the Conservative party to confirm "what conversations have taken place between the party and Lycamobile to ensure that business practises... are legitimate and provide reassurances that no further donations will be accepted from the company until the necessary investigations are completed".
A Conservative spokesman said: “All donations to the Conservative Party are properly and transparently declared to the Electoral Commission, published by them, and comply fully with Electoral Commission rules. Election law requires a party to satisfy itself that a corporate donor is “carrying on business in the UK”.”
Lycamobile have been contacted for a comment.