Warsi’s business dealings come under scrutiny

The Dewsbury-born Conservative Party co-chairman, whose expenses are under scrutiny, was also facing questions over two trips she is reported to have made to Saudia Arabia at the Saudi government’s expense.

Shadow Cabinet Office Minister and Barnsley East MP Michael Dugher has called for an urgent inquiry into the allegations.

Lady Warsi denied any wrongdoing, insisting she had stuck by House of Lords rules for declaring shareholdings and directorships.

Her protestation was in response to a report in yesterday’s Sunday Telegraph, which claimed she had failed to declare a 60 per cent controlling stake in Rupert’s Recipes.

The newspaper said she was also listed as a director of the firm from February 2009 to July 6, 2010, two months after she entered the Cabinet.

Sources suggested the shares were transferred into her name for a short period only and then passed into her husband’s hands.

They also said there was no requirement to register unpaid directorships before a strengthening of the upper house rules last year.

In a statement, Baroness Warsi said: “My shareholdings and, before becoming a Minister, directorships have at all material times been disclosed as required on the Register of Lords’ Interests and to the Cabinet Office and on the register of Ministerial interests.”

The senior Tory also defended herself against questions raised by Labour about business associate Abid Hussain accompanying her on an official trip to Pakistan.

She said: “Neither I nor the Conservative Party nor the Government had ever met the costs of foreign visits by Abid Hussain.”

Mr Dugher compared the case with that of Liam Fox – who quit as Defence Secretary after his relations with lobbyist Adam Werritty breached the Ministerial code.

He said: “This looks like the Liam Fox/Adam Werritty case all over again – with Ministers allegedly being accompanied on official trips by their private business associates.

“Baroness Warsi has urgent questions to answer. Were House of Lords rules broken in this case?

“What was Mr Hussain doing on an official Government trip in the first place? Was he security vetted and was his presence cleared by the Cabinet Secretary or by Number 10?

“After his reluctance to take action against Jeremy Hunt, David Cameron now needs to show he is prepared to make sure his Ministers show the highest standards of behaviour.”

Mr Dugher wrote a letter to Cabinet Secretary Sir Jeremy Heywood asking for an inquiry “as a matter of urgency” into the claims.

In it, he also raised questions about a report in yesterday’s Mail on Sunday that Baroness Warsi made two trips to Saudi Arabia – one while a Minister – at the Saudi government’s expense.

“Why was it deemed appropriate for a foreign government to pay for these trips?” he asked.

He also raised questions about the number of overseas engagements undertaken by Baroness Warsi – which the Sunday Mirror said totalled 14 over two years, costing the taxpayer £14,000.

“Given that the Minister has no government responsibilities whatsoever and that she is primarily co-chairman of the Conservative Party, why has she been allowed to go on so many foreign visits at considerable cost to the taxpayer?” Mr Dugher wrote.

“Can it be confirmed that no party business was conducted on any of these overseas visits and, if so, what was the nature of the official business undertaken on all these trips?”

The Sunday Times yesterday accused Baroness Warsi of “profiteering” from Parliamentary expenses, reporting she had claimed the maximum £165.50 for overnight accommodation while staying at a Premier Inn for around £75 – although it pointed out this did not break any rules.

Baroness Warsi’s expenses came under scrutiny last month when it was reported she claimed £165.50 a night while staying rent-free at a friend’s London flat in 2008.

She denies any wrongdoing, insisting she made an “appropriate payment” to Tory official Naweed Khan – now one of her aides – for the nights she was his guest.

Mr Khan supported her, but the property’s owner, former Conservative donor Wafik Moustafa, denied receiving any income.

She referred the claims about her expenses to the Lords Commissioner for Standards Paul Kernaghan on Tuesday.