WENDY Alexander will not face a police investigation into the illegal donation received by her leadership campaign, Scottish Secretary Des Browne claimed.
The financial details of Ms Alexander's successful leadership campaign of last summer are currently being examined by the Electoral Commission.
The Scottish Labour leader has admitted accepting an illegal donation of £950 from Jersey-based busines
sman Paul Green but she has insisted that she did not know the donation was illegal when it was received.
Ms Alexander has also claimed to have e-mail proving that she queried the donation with Charlie Gordon, the Labour MSP who solicited the money from Mr Green.
There has been intense speculation about the Electoral Commission's investigation, particularly as the commission triggered Peter Hain's resignation as a Cabinet minister last week when it referred his donations to the police.
But yesterday Mr Browne spoke out to claim that Ms Alexander would not have to face a police inquiry and would not have to resign.
Speaking on BBC Scotland's The Politics Show, the Scottish Secretary said: "I am not anticipating that anyone else will be reported to the police.
"I don't expect any of the rest of my colleagues will need to resign from any positions they are in."
The Electoral Commission has never given any hint as to when its inquiries into Ms Alexander's finances will be completed.
But the material was handed over to the commission before Christmas and the results are expected soon.
Ms Alexander has consistently declared that she expects to be cleared of any intentional wrong-doing.
The SNP's Westminster leader, Angus Robertson, claimed Mr Browne had made a "blunder" by claiming all of his colleagues would be cleared.
He said: "The donations crisis is deepening for Labour as it appears the party puts its own self-interest above and ahead of the law. Labour's arrogant flouting of the law has been systematic and endemic."
He added: "This is now a real test of credibility for the Electoral Commission, who are being undermined and second-guessed by Des Browne."