The Lords commissioner for standards considers whether to investigate allegations about Conservative co-chairman Baroness Warsi’s expenses.
Baroness Warsi has denied making inappropriate expenses claims after newspapers alleged she claimed for overnight accommodation while staying at a friend’s house for free.
The Sunday Times and the Sunday Telegraph reported that Lady Warsi pocketed £165 a night in early 2008 for staying at a west London property occupied by Tory official Naweed Khan in early 2008.
The cabinet minister asked Lords commissioner for standards, Paul Kernaghan, to look into accusations she claimed for accommodation while staying at a friend’s house rent free, a Conservative Party spokeswoman said.
Naweed Khan, who later became Lady Warsi’s special adviser, insisted the public money had been passed on to him.
He said in a statement: “I confirm she made a financial payment on each occasion, which compensated for the inconvenience caused and additional costs incurred by me as a result of her being there.”
Mr Kernaghan will carry out “a preliminary assessment” before deciding the next course of action. Lady Warsi said she would co-operate with any inquiry, but declined to answer questions over whether she would resign over the row.
The Acton flat in question is understood to be owned by Dr Wafik Moustafa, a Conservative donor and former electoral candidate who is now engaged in a dispute with the party and Lady Warsi.
Dr Moustafa has reportedly denied that he received any income from either the Tory peer or Mr Khan.
Lady Warsi, now a cabinet office minister, was at the time claiming Lords subsistence expenses of £165.50 a night.
She said in a statement: “There was a period of around six weeks when I spent occasional nights at a flat in Acton, which was occupied by Naweed Khan, at the time a member of Conservative campaign HQ staff.
“For the nights that I stayed as a guest of Naweed Khan, I made an appropriate financial payment equivalent to what I was paying at the time in hotel costs.”
For the nights that I stayed as a guest of Naweed Khan, I made an appropriate financial payment equivalent to what I was paying at the time in hotel costs. Baroness Warsi
He said: “If you are paying no rent where you are staying, you can’t possibly be claiming subsistence for staying there. It all seems very murky. We need a full investigation into the matter.”
In a further embarrassment for Lady Warsi, the most senior Muslim politician in Britain, she has admitted failing to declare rental income on a London flat in the Lords register of interests, calling the omission an “oversight”.
She said she had reported the letting of her Wembley flat in the Register of Ministers’ Interests and declared the arrangement to the Cabinet Office and HM Revenue and Customs.
It all seems very murky. We need a full investigation into the matter. John Mann
Peers are required to declare sources of income of more than £500, although the annual rent on a London flat is likely to be many times greater than that.
In a statement, Lady Warsi said that she contracted to buy the flat in September 2007, but it was not due to be ready until the following year.
She said: “In March 2008, I moved into the flat in Wembley. As I was living in the property, it was therefore not registrable on the Register of Lords’ Interests. Upon becoming a minister, however, my ownership of this property was fully disclosed to the Cabinet Office.
“In June 2010, upon security advice, I moved to another address closer to the House of Lords and some months later began, with the prior approval of the Cabinet Office and the Leader of the House of Lords, to let out the Wembley property.”
She added: “Due to an oversight, for which I take full responsibility, the flat was not included on the Register of Lords’ Interests when its value and the rent received came to exceed the thresholds for disclosure.
“When the discrepancy became apparent this week, I immediately informed the Registrar of Lords’ Interests of its omission.
“I repeat, at all times my ownership of the flat and the fact that it was being let out was fully disclosed to Cabinet Office officials and HM Revenue and Customs, and was appropriately reported on the register of ministers’ interests held by the Government.”