THE businessman at the centre of a police probe into proxy donations to the Labour Party said he was “relieved”

yesterday after prosecutors announced no one would face charges.

Millionaire David Abrahams, who hit the headlines when it was revealed he made donations of more than £650,000 using other people’s names, said he was surprised the Crown Prosecution Service (CPS) had been so long in making the announcement and he was “always confident”

he had broken no laws.

The Newcastle-based property developer was speaking after the CPS said there was “insufficient evidence” to pursue charges under electoral law.

Possible charges had been considered in relation to three former Labour officials – Lord Triesman, Matthew Carter and Peter Watt – who all denied any wrongdoing.

The “primary evidence” for a prosecution was the Labour Party finance reports signed by the three, which falsely identified the donors as someone other than Mr Abrahams, the CPS said.

But inconsistencies in the evidence meant it would not have been possible to prove they knew where the money came from.

Mr Abrahams said he gave donations using the names of associates, including his secretary and a builder because he wanted to protect his privacy.

The revelation led to the resignation of Mr Watt, then general secretary of the Labour Party, when it emerged he knew of the arrangement.

Scotland Yard was called in by the Electoral Commission in November 2007 and handed over its files to the CPS last June before later being asked to carry out additional inquiries.

Stephen O’Doherty, from the CPS, said: “After taking advice from counsel and discussing the difficulties with the police, I concluded that there was not a realistic prospect of securing a conviction.”

Mr Abrahams said: “I am relieved the announcement has finally been made, over a year after the authorities first let it be known to the media that the investigation would result in no charges being brought against me.

“I was always confident that I had broken no laws. I was merely trying to protect my identity as a major donor to the Labour Party because it’s not my style to give money in an ostentatious manner.

“I still believe that, in a free society, people should be free to give money to causes without having their privacy breached.”

He added: “My name is now clear.”

The Labour Party said it was making arrangements for the repayment of the donations.