The Conservatives were warned ex-Tory MP Mark Menzies’s alleged misuse of party funds may have constituted fraud but the whistleblower was told there was no duty to report it

Mr Menzies, the MP for Fylde in Lancashire, gave up the Tory whip in the wake of reports in The Times that he misused party funds. He disputes the allegations.

The allegations came about after Mr Menzies former campaign manager, Katie Fieldhouse, spoke to the newspaper.

In a new interview with The Times this evening, Ms Fieldhouse, 78, claims she was told the Conservative Party was aware the allegations were potentially criminal.

She says the Conservative Party’s chief of staff “told me that when they first took over the investigation [from the Whips’ Office] they had consulted solicitors”.

She added: “He told me on the phone, ‘the solicitor said it is fraud but you are not duty-bound to report it because it’s not Conservative Party money’.”

The whistleblower said she was told the decision not to inform the police was made because it was donors’ money and not the party’s.

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A Conservative spokesperson said: “The party is conducting an investigation into the claims made and has been doing so for several months.

“We will of course share any information with the police if they believe it would be helpful to any investigation they decide to undertake.

“Suggestions the party has not been seriously examining this matter are demonstrably false.”

Lancashire Police said today it was “reviewing” information about Mr Menzies after Labour asked for an investigation to take place.

In a statement, the force said: “We can confirm that we have now received a letter detailing concerns around this matter and we are in the process of reviewing the available information in more detail.”

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The party’s chief whip, Simon Hart, is said to have been made aware of the claims in January, when the former campaign manager reported what had happened.

Sky News understands there has been an investigation ongoing by Conservative Campaign Headquarters (CCHQ) since the allegations were first raised, but further information came to light this week and Mr Hart acted immediately.

Speaking tonight, Labour’s chair Anneliese Dodds said: “The Conservative chairman and chief whip must urgently come out of hiding and explain what they knew and what advice they received.

“If, as reported, they or Conservative officials​ were warned about potentially fraudulent activity and chose not to go to the police, this would be indefensible.”

Mr Menzies, who has served as an MP since May 2010, is reported to have phoned his 78-year-old former campaign manager at 3.15am last December, saying he was locked in a flat by “bad people” and needed £5,000 as a matter of “life and death”.

The sum, which rose to £6,500, was eventually paid by his office manager from her personal bank account and subsequently reimbursed from funds raised from donors in an account named Fylde Westminster Group, the newspaper says.

Speaking to Sky News, Ms Fieldhouse said: “I am feeling dreadful because I am a devout Tory and as I have said to everybody else, I reported his actions to the chief whip… it is now the middle of April.

“Come to your own conclusions [about] what is happening.”

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Asked if she was disappointed with the way the complaint was being handled, she said: “Yes.”

Mr Menzies said on Thursday: “I strongly dispute the allegations put to me. I have fully complied with all the rules for declarations. As there is an investigation ongoing I will not be commenting further.”

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