Fox friend linked to pro-Israeli lobbyists

By Ian Dunt

Liam Fox's chance of surviving the crisis around him looked increasingly unlikely this morning as more reports emerged of his trips with close friend Adam Werritty.

As the scandal moved from his private life to the funding sources which allowed Mr Werritty to accompany his friend on 18 foreign trips, key figures in Westminster began to turn against the defence secretary.

Sir Gus O'Donnell's report is not expected until early next week. Sources indicate it will find that Mr Fox has breached the ministerial code and give David Cameron enough reason to sack him.

A Time report this morning suggested that a pro-Israeli lobbyist, a Washington-linked venture capitalist and a corporate intelligence company with strong interests in Sri Lanka funded Mr Werritty's various trips with Mr Fox, allowing him to stay in five-star luxury around the world.

Some of the £147,000 poured into a not-for-profit company Mr Werritty set up was reportedly used for the trips.

As the media pack focussed relentlessly on claiming Mr Fox's scalp, new pressure was exerted on the prime minister to get rid of the defence secretary.

Labour leader Ed Miliband suggested Mr Cameron had been "ineffective" in dealing with the situation, but the prime minister is keen to resist a capitulation to groups demanding Mr Fox resign.

Downing Street feels Mr Cameron will look weaker by accepting the pressure than he will if he acts after the report has been delivered.

As a former leadership rival and darling of Conservative backbenchers, Mr Fox could also prove a potent threat from the backbenches, where he could communicate an unsullied Conservatism in contrast to the endless compromises of coalition government.

Sacking Mr Fox would also raise the possibility of a front-bench reshuffle, something Mr Cameron will be keen to avoid given the delicate politics of coalition.

Labour is also demanding an Electoral Commission investigation into the affair and that Sir Philip Mawer, independent advisor on ministerial standards, be handed the ongoing investigation.

Some reports suggest allies of the defence secretary are finally manoeuvring to protect him, with Mr Fox being asked to make a special address to the foreign affairs sub-committee of the backbench 1922 committee next Tuesday.