Cabinet Ministers Deny Fox Friend's Influence

Cabinet ministers have said there is no evidence that Adam Werritty - the friend of former defence secretary Liam Fox - influenced Government policy.

Detectives are also considering investigating Mr Werritty over allegations of fraud.

But the International Development Secretary, Andrew Mitchell, has told Sky News he has looked into the claims about Dr Fox's friend.

Speaking to Dermot Murnaghan, he said: "I've seen some reports that Dfid (Department for International Development) officials were concerned about Mr Werritty's activities.

"I've looked into that and I've talked to the Permanent Secretary and neither I nor the Permanent Secretary are aware of any of this.

"So, of course, if anyone has concerns they are welcome to raise them but none have been raised with me or the most senior officials in this department."

Earlier, Labour MP John Mann said he had written to police to look at whether Mr Werritty and the former minister had broken the law.

He told the Sunday Telegraph: "Mr Werritty gave out business cards saying he was an adviser to Dr Fox.

"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."

A City of London Police spokesman confirmed the force had received an allegation of fraud.

Sky reporter Mark Stone said: "At this stage we do not know how much evidence the police will be able to mount and whether there is a case to answer."

Dr Fox is also facing more pressure over his involvement in soliciting donations for a company that funded Mr Werritty.

Prominent Tory backers have reportedly complained that Mr Fox "misled" them about how the money would be used.

The latest developments came despite the Conservative MP finally resigning on Friday after a week of negative media reports.

Phillip Hammond has accepted Prime Minister David Cameron 's request that he take charge at the Ministry of Defence, while Justine Greening replaces him as transport chief.

The Sunday Telegraph has reported the reshuffle was so hastily conducted that Mr Cameron contacted his ministers from a train platform surrounded by morris dancers.

Meanwhile, venture capitalist Jon Moulton is understood to have approached Cabinet Secretary Sir Gus O'Donnell 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.

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