Labour tonight demanded answers from the government after it emerged an IT firm with a non-excutive director married to a Tory minister has been awarded more than £24 million in MOD contracts.
In a stinging letter to the Cabinet Secretary, deputy leader Angela Rayner hit out at a "failure to close loopholes" and voiced alarm over new PM Liz Truss's reluctance to appoint an ethics advisor.
It comes following reports that Michael Keegan, partner of health minister Gillian Keegan, is a senior Cabinet Office official who simultaneously sits on the board of private company Centerprise International.
The company, which Mr Keegan is a non-executive director of, was awarded 17 contracts between October 2019 and May 2020, official documents show - sparking claims of "cronyism".
Mr Keegan's civil service role involves managing the relationship between the government and arms company BAE Systems - but the firm say he played no role in securing the contracts for Centerprise International.
Ms Rayner has written to Cabinet Secretary Simon Case, hitting out at a "clear disregard for decency" and said that a "culture of cronyism" lies at the heart of the government.
Ms Rayner's letter, seen by The Mirror, called for the matter to be looked at by Mr Case as the government has yet to replace ethics advisor Lord Geidt, who quit Boris Johnson's government in June.
She wrote: "It was hugely concerning to see that the Crown Representative at the Cabinet Office and Ministry of Defence with oversight of government contracts with the MOD was also sitting on the Centerprise board.
"At the very least, handing oversight of MOD contracts to board members with a vested interest shows a clear disregard for rules of decency and fairness around taxpayer money.
"It shows once again that a culture of cronyism lies at the heart of this government."
She called for more transparency around Crown Representatives, and asks what "due diligence" is carried out when these positions are appointed.
Hitting out over the lack of government ethics advisor, Ms Rayner wrote: "The public expects the very highest standards from government yet have been repeatedly let down under the outgoing Prime Minister.
"That the new Prime Minister seems reluctant to appoint a new ethics advisor is a worrying indication that we can expect more of the same from this new administration.
"This is just the latest example of this Conservative Government’s failure to close loopholes and allow inappropriate influence from those with a clear conflict of interest."
Last month Ms Truss refused to commit to appointing a new ethics advisor, claiming that she "always acted with integrity" - a move former leadership rival Rishi Sunak said he disagreed with.
A government spokesperson said:“We have a clear conflicts of interest process that ensures that all conflicts are identified and recorded formally and this safeguards our procurement and commercial processes.
"Michael Keegan is responsible for managing the relationship between the government and BAE Systems. He plays no role in awarding contracts to suppliers and declared his position at Centerprise as part of the Cabinet Office's conflict of interests process."
Centerprise International dismissed the claim, saying there is "no connection" between Mr Keegan's two roles.
A spokesperson for the company said yesterday (MON): "There is no connection between Michael Keegan's role as a non-executive director of Centerprise International and his appointment as a Crown Representative.
"Crown Representatives play no role in the award of contracts to suppliers and his role at Centerprise was fully disclosed prior to appointment.
"All MOD contracts awarded to Centerprise International were completed through relevant Crown Commercial Services frameworks. The story has no credence."
Ms Keegan's office declined to comment when contacted by The Mirror.
