Labour general secretary Peter Watt has resigned saying:
"I was aware of arrangements whereby David Abrahams gave gifts to business associates and a solicitor who were permissible donors and who in turn passed them on to the Labour Party and I believed at the time my reporting obligations had been appropriately complied with. "As a result of press coverage over the weekend, I sought legal advice on behalf of the Labour Party. I was advised that, unbeknown to me, there were additional reporting requirements. "Consistent with my own and the party's commitment to the highest standards in public life, it is with great sadness I have decided to resign my position as general secretary with immediate effect."
Well done that man, he made a mistake, but unlike many others he took responsibility for his actions.
UPDATE: the figure now stands at £600,000. Can Labour afford to pay that much back?
UPDATE: @22:48 There are rumours of a fourth donor hiding in the shadows.