A sizeable donation to the ruling One Bermuda Alliance party was earmarked for “grassroots” political campaigning, according to a source linked to the OBA.

The source could not confirm the precise figure for the donation given by East Coast developer Nathan Landow and six associates, which was lodged into the Butterfield account of an entity known as the Bermuda Political Action Club — but the contribution was reportedly $300,000.

OBA chairman Thad Hollis stated that the fund’s existence was not known within the party and there would be an investigation.

At the May 14 launch of the inquiry into the donation, Mr Hollis stated: “I will advise all of you now and the people of Bermuda, that the party never received any funds from Mr Landow or any of his known associates.”

As of yesterday, there was no public explanation from the party as to how the Bermuda Political Action Club lodgement could have flown below the radar of the OBA executive.

However, speaking anonymously due to the investigation, the source sought to allay a “misconception” that Premier Craig Cannonier, Tourism Minister Shawn Crockwell and Attorney General Mark Pettingill had received $300,000 from Mr Landow during a March 2013 trip to Washington DC to visit the developer.

“It was a campaign donation, well before the trip, given during the 2012 campaign,” the source told this newspaper.

In the aftermath of Mr Cannonier’s resignation yesterday evening, Acting Premier Michael Dunkley said the investigation into the donation will continue, while Mr Cannonier maintained that he had done nothing illegal.