UKIP group 'misspent' EU funding on Brexit campaign, says leaked audit

UKIP has misspent almost half a million euros of EU funding on its own electioneering and to help boost their Brexit campaign, according to a leaked audit seen by Sky News.

The party splurged taxpayers' cash, breaking European Union spending rules, on polling in key UKIP target constituencies ahead of the General Election and also ahead of the EU referendum.

The money was provided to the European political grouping, the Alliance for Direct Democracy in Europe (ADDE), which is dominated by Nigel Farage's party.

Image Caption:Mr Farage unveils his 'Breaking Point poster during referendum campaigning

The report concluded: "The constituencies selected for many of the polls underline that polling were (sic) conducted in the interest of UKIP.

"Most of the constituencies can be identified as being essential for reaching a significant representation in the House of Commons from the 2015 General Election or for a positive result for the 'Leave campaign'."

And on the EU referendum the auditors said: "Several polling can be considered as financing of a referendum campaign which violates 8(4) ... prohibiting the financing of referenda campaigns." 

The audit, drawn up for the European Parliament Bureau, puts the total misspend at over €500,615.55 (£430,486.82) by ADDE, which includes other parties in Europe, but a EU spokesperson said the "lion's share" was by UKIP, amounting to over €450,000 (£386,961).

The money, according to the audit, was used to fund polling in Great Grimsby and Thurrock, Rochester and Strood and Cardiff South and Penarth, all UKIP target seats at the last election.  

Polling was also paid for ahead of the General Election in Thanet South, where Nigel Farage unsuccessfully ran to become an MP.

And it continued after the election, to fund several EU referendum attitude polls across the UK.

Image Caption:The European Parliament Bureau is considering the audit

A final decision by the European Parliament Bureau will be made on Monday.

If the bureau agrees with the conclusion of the external audit, UKIP could be forced to pay back more than €170,000 (£146,185) while not being able to claim hundreds of thousands more.

This comes at a bad time for the embattled party, whose finances are in a poor state, a situation not helped by major party donor Arron Banks threatening to stop funding UKIP.

A spokesman for ADDE said they would be taking the matter to court and that the definition of "expenditure supporting a political party" had been changed.

He said: "The parliament administration has for months taken an aggressive and hostile attitude over the audit, amounting to nothing short of deliberate harassment.

"We have responded to their queries with a mass of information and explanation justifying our activities and expenditure. They have simply ignored our submissions and in several cases these submissions have been made repeatedly on their request."

A UKIP source told Sky News they were "not surprised that it has been leaked to the press before the party has had a chance to see it".