Call for sleaze inquiry into peer’s expenses

Cabinet minister Baroness Sayeeda Warsi is under mounting pressure amid allegations she claimed parliamentary expenses for accommodation while staying at a friend’s house rent-free.

The Conservative Party co-chairman faced calls from Labour and a former sleaze watchdog for a full investigation into her expenses claims.

There was little sign of support from Downing Street or fellow ministers. Tory deputy chairman Michael Fallon said the peer “believes” she acted within the rules, but admitted that the controversy was embarrassing for the party.

Baroness Warsi insisted 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.

Mr Khan supported her assertion, saying she made a payment each time she stayed.

However, the property’s owner, GP and former Conservative donor Wafik Moustafa, denied receiving income from either Baroness Warsi or Mr Khan.

The Tory peer, now a Cabinet Office minister, was claiming Lords subsistence of £165.50 a night at the time the allegations relate to, in 2008.

Sir Alistair Graham, a former chairman of the Committee on Standards in Public Life, said: “At the moment it all looks very muddy and blurred and worthy of a full investigation.”

Labour MP John Mann said he would be writing to the Lords standards commissioner requesting an investigation.

“If you are paying no rent where you are staying, you can’t possibly be claiming subsistence for staying there,” he said.

Conservative deputy chairman Michael Fallon acknowledged the controversy was “embarrassing” but said that Baroness Warsi believed she had acted within the “spirit and letter” of the rules.