David Abrahams used other people to make donations |
The Electoral Commission gave the party the start-up grant in 2001 and 2002 after the Political Parties, Elections and Referendums Act 2000 came in.
But since 2003 property developer David Abrahams has donated £663,975 to the party under other people's names.
The police are currently investigating these donations.
An Electoral Commission spokeswoman said the grants were given to all political parties.
A total of £700,000 was divided between all parties, proportionate to the number of votes they got in the 1997 general election and the 1999 European elections.
New staff
Labour was paid £165,000 in 2001 and £18,000 a year later, according to the Electoral Commission's accounts.
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