Adam Werritty faces police investigation

Questions are also mounting for other ministers involved in Dr Fox and Mr Werrity’s Atlantic Bridge political organisation.

The Foreign Secretary William Hague denied any attempt to develop a separate foreign policy with American neo-conservatives but said the government would take stock of the issues this week

The Labour MP John Mann has insisted that the police and the Electoral Commission should look at whether Dr Fox and Mr Werrity had behaved in a criminal fashion.

The latest developments come despite Dr Fox falling on his sword and ahead of a government report on the incident due on Tuesday.

Mr Mann said he had written to police asking for a fraud investigation to be launched.

“I referred the matter to the police to investigate whether there is a potential fraud,” he told the Daily Telegraph.

“Mr Werritty gave out business cards saying he was an adviser to Dr Fox.

City of London Police can confirm is has received an allegation of fraud. City of London police spokesman

“If that is not the case and he was getting money – for whatever purpose – by misrepresenting his relationship with the defence secretary, that cannot be right.”

Dr Fox’s actions should also be scrutinised by the force, he added.

A City of London Police spokesman said: “City of London Police can confirm is has received an allegation of fraud.

“Officers from the force’s economic crime directorate will consider the matter and establish whether or not it is appropriate to launch an investigation.”

‘Fanciful’ shadow policy

Cabinet Secertary Sir Gus O’Donnell is still due to complete his probe into Dr Fox’s links with Mr Werritty – who appeared to be effectively acting as an aide even though he had no official role at the MoD or with the Tory party.

Foreign Secretary William Hague said today: “The findings of the report will be published on Tuesday, so there isn’t too long for everyone to wait. Any implications from that, the government will take full stock of.”

However, Mr Hague dismissed as “fanciful” the idea that Mr Werritty could have been running a shadow foreign policy outside of government control.

“One adviser or non-adviser, whatever he may have been, is not able to run a totally different policy from the rest of government,” he told the BBC.

One adviser or non-adviser, whatever he may have been, is not able to run a totally different policy from the rest of government. Foreign Secretary William Hague

Venture capitalist Jon Moulton is understood to have approached Sir Gus to express unhappiness about Dr Fox’s actions.

Mr Moulton said the Cabinet minister asked him to donate to Pargav, a not-for-profit company set up by Mr Werritty. He was apparently told the firm helped provide “security and analysis”, and was unaware it was funding Mr Werritty’s travel to meet Dr Fox on official trips.

The millionaire has also complained to the Conservative Party about the way he was treated.

There were reports that those giving money to Pargav had been promised anonymity, which could potentially be against tough rules on declaring donations.

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