Diageo under fire over political donations

Diageo is expected to come under fire from disgruntled shareholders tomorrow over large political donations the drinks giant has made to US political interests.

The Guinness brewer, which is holding its annual general meeting in London tomorrow, is said to have paid more than £300,000 in donations to American organisations without the OK of investors.

It has also lined up a further £200,000 to be paid to European political parties, according to reports.

Pension fund watchdog PIRC has called for shareholders to vote against Diageo's annual report to register their displeasure with the moves.

A spokeswoman for Diageo said the money donated to US was part of "common practice" and that donations were part of the group's aim of "promoting a better understanding of Diageo and its views on commercial matters as well as a generally improved business environment".

She added that two major institutional shareholders in Diageo, ABI and RREV, both recommended voting in favour of the group's resolutions.