Baroness Warsi reported to police as PM admits questions remain

LABOUR last night called for a criminal inquiry into the expenses of Conservative Party co-chairman Baroness Warsi, as the Prime Minister acknowledged she had questions to answer.

The party sought to maintain pressure on the Cabinet minister by requesting police examine whether she claimed for accommodation while staying at a friend’s house rent free.

MP Karl Turner wrote to City of London Police about the case – which Baroness Warsi has already asked the Lords Commissioner for Standards to investigate.

The move came amid a slew of fresh allegations against the under-fire politician, including an alleged failure to declare business interests and questions over foreign visits.

She issued a fresh denial of wrongdoing, insisting that she had acted within the rules at all times – but Mr Cameron said he accepted she needed to provide answers.

“I am satisfied that there are questions that have been raised and there are questions which have to be answered,” the Tory leader said.

Lady Warsi said she made an “appropriate payment” to her friend – Tory official Naweed Khan, who is now one of her aides – for the nights she stayed at the property in Acton, west London.

But the property’s owner, GP and former Conservative donor Wafik Moustafa, denies receiving any income from either Lady Warsi, or Mr Khan, during the time of her stay in 2008. Lady Warsi was claiming Lords subsistence of £165.50 a night.

In his letter to the police, Mr Turner wrote: “It appears that Baroness Warsi may have claimed for expenses which she did not in fact incur, and that a criminal offence may therefore have been committed. I am writing to ask that an inquiry be undertaken into whether Baroness Warsi or her aide Naweed Khan have broken the law.”