Fox fights to save his career over links to friend

Dr Fox – who on Saturday described accusations against him as “baseless” – last night conceded that his “frequent contact” with Mr Werritty may have “given an impression of wrongdoing”.

Reports have claimed Mr Werritty, who was best man at Dr Fox’s wedding and has a defence consultancy business, met with the Secretary of State inside the Ministry of Defence as many as 14 times, as well as accompanying him on official visits including a meeting in Dubai in April with defence industry representatives.

Contracts were discussed at the meeting in Dubai, which was not attended by civil servants, and which Dr Fox initially claimed was a chance meeting, but which has now emerged to have been organised by Mr Werritty.

Dr Fox accepted that their close ties may have given outsiders the “misleading impression that Mr Werritty was an official adviser rather than simply a friend”.

“I accept that it was a mistake to allow distinctions to be blurred between my professional responsibilities and my personal loyalties to a friend,” the beleaguered Tory said. “I am sorry for this.

“At no stage did I or my department provide classified information or briefings to Mr Werritty or assist with his commercial work – let alone benefit personally from this work.

“Nevertheless, I do accept that given Mr Werritty’s defence-related business interests, my frequent contacts with him may have given an impression of wrongdoing, and may also have given third parties the misleading impression that Mr Werritty was an official adviser rather than simply a friend.”

David Cameron, who it is claimed spoke with Dr Fox shortly before his statement last night, is expected to make a decision on his fate later today after receiving a report into the controversy.

Reports also claimed business cards have been issued by Mr Werritty describing himself as an adviser to Dr Fox. The Defence Secretary has said it was wrong of his friend to have portrayed himself in this way, but has not yet said if he was aware Mr Werritty was touting himself in this way to defence contractors.

The self-styled adviser had no formal parliamentary or Whitehall position yet accompanied the Defence Secretary on overseas visits and meetings with foreign dignitaries.

Despite claims Mr Werritty had never been involved in official engagements, footage was uncovered that showed him meeting Sri Lankan president Mahinda Rajapaksa with Dr Fox in a London hotel last year.

Shadow Defence Secretary Jim Murphy has written to the Prime Minister calling for a full investigation, claiming there are “significant shortcomings” in the current internal inquiry.

The letter states: “This is a totally inadequate response to the scale and nature of the charges that the Secretary of State now faces.”

Former Prime Minister Sir John Major admitted it was an “extremely difficult” situation for David Cameron to handle.

“Either natural justice requires you wait a long time and you are then said to be incapable of making decisions or you move too speedily and you are said to be ruthless,” he said.

Former Armed Forces Minister Kevan Jones said: “This is a remarkable admission. Just 24-hours ago Liam Fox called these allegations ‘baseless’ and now he has apologised, but yet is denying any wrongdoing took place.

“The Defence Secretary simply cannot have sensitive meetings behind the back of his officials. This is incredibly serious and this response is incredible.”

Hard-liner life and soul of the party

Liam Fox has often raised eyebrows at Westminster with his colourful personal and professional life.

He is renowned for his sociable nature and, earlier this year, laughed off criticism over his decision to go to the pub when Ministry of Defence officials were helping co-ordinate the evacuation of UK nationals from Libya. Dr Fox counts Australian pop star Natalie Imbruglia among his close pals and his parties are legendary.

A hard-line right winger, his relationship with No 10 has been strained, particularly after two critical letters he wrote to David Cameron found their way to the Press.