Danny Alexander in trouble as Ministry of Sound owner, James Palumbo, given peerage 2 days after £10k donation to Lib Dems By Abigail Frymann The Liberal Democrat Cabinet minister Danny Alexander has been branded a hypocrite for accepting a £10,000 donation from a wealthy backer who was handed a peerage just two days after the gift was declared. The Ministry of Sound empire, owned by multi-millionaire James Palumbo, gave the large sum to Mr Alexander's local party in the Scottish Highlands. The gift was declared to Parliament's authorities on 30 July, the latest register of MPs" interests reveals. Donor: Nightclub boss James - now Lord - Palumbo with his model friend Sasha Volkova in September 2011 The nightclub boss was made a Liberal Democrat peer just two days later. The cash had been received in March but Mr Alexander, who is effectively second in command at the Treasury, failed to declare it for four months, despite a Commons rule that it should have been done in four weeks. Details of the gift re-ignited the row over the list of working peers, which includes a number of wealthy tycoons who have made substantial donations to political parties. Recorded: The Register of Members' Financial Interests as at 27th August 2013 shows the donation from Ministry of Sound Tom Harris, Labour MP for Glasgow South, told the Mirror: 'It's hypocrisy by Nick Clegg's party. In opposition they criticised party donors given honours. Here the Chief Secretary to the Treasury receives a five-figure sum from someone who was then handed a peerage. For a Cabinet minister not to declare this personal benefit for months is unacceptable. Mr Palumbo, who was quickly dubbed 'Lord of the Dance' after receiving his honour, has given the Lib Dems more than £700,000, including £80,000 since the start of this year. Criticism: Labour MP Tom Harris said it was 'unacceptable' for Danny Alexander (left) to not declare the gift sooner, and noted that while in opposition Nick Clegg had criticised Labour for giving honours to donors A spokesman for Mr Alexander told the Mirror the donation 'was accepted on 17 March and declared publicly to the Electoral Commission in the normal manner'. He added: 'As soon as it became apparent that this should have been simultaneously declared to the register of members" interests it was done so.' After Mr Palumbo's peerage and 29 others were announced at the beginning of this month, Lord Oakeshott, a senior Liberal Democrat and former member of the joint committee on Lords reform, warned that giving peerages to major donors 'pollutes parliament and political parties who collude in this'. Ministry: James Palumbo's MoS began as a hugely successful London nightclub and today includes an international network of record labels He said it was vital to elect Lords and 'get big money out of British politics for good'. In addition to Mr Palumbo, Mr Clegg also awarded a peerage to pizza magnate Rumi Verjee, has given the party £770,000 since May 2010. New Tory peers included big money donor and JCB head Sir Anthony Bamford, whose family has boosted Conservative Party coffers by some £2.5million. Among the newly created Labour peers was refrigeration boss Sir William Haughey, who has donated over £1 million to the party since 2003.