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Defence Secretary Liam Fox quits over pal

LIAM Fox was finally forced from his job as Defence Secretary yesterday as the
toxic scandal over his close friendship with Adam Werritty destroyed his
Cabinet career.

Dr Fox, 50, had weathered a week of devastating revelations about the role
played by his 33-year-old unofficial “adviser”.

He finally fell on his sword hours after explosive details emerged about the
group of millionaire tycoons who bankrolled Werritty’s five-star
globe-trotting lifestyle. Last night it emerged Dr Fox had personally asked
one of the donors to give cash to Werritty’s firm.

Dr Fox rang David Cameron on his mobile at lunchtime to tell him he was
resigning. The Prime Minister, who was on a visit to his constituency, was
said by aides to have been “genuinely surprised”.

Close ... Dr Liam Fox at 2005 wedding with Best Man Adam Werritty

The Picture Library
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Until yesterday afternoon, Dr Fox had remained defiant, blaming a media
witch-hunt for his troubles.

But a damning report on Werritty’s role at the heart of Government, prepared
by Britain’s top civil servant Sir Gus O’Donnell, is expected in days.

A source close to the PM said: “David was content for him to continue at least
until Sir Gus’s report arrived on Monday or Tuesday.”

In his resignation letter to the PM, Dr Fox admitted he had made spectacular
blunders. He said: “I mistakenly allowed the distinction between my personal
interest and my Government activities to become blurred. The consequences of
this have become clearer in recent days. I am very sorry for this.”

Friends

But he made clear he will stay on as an MP. In his reply, Mr Cameron said he
understood why Dr Fox was quitting but added: “I am very sorry to see you
go.” He said Dr Fox and his wife Jesme, 43, “have always been good friends”.

FOX

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Pressure mounted on Dr Fox yesterday when Werritty was grilled for a second
time by Whitehall bosses about his 40 meetings and 18 overseas trips with Dr
Fox.

There was also growing panic about a raft of new allegations in the Sunday
newspapers.

Sources said the wealthy friends of Mr Fox, who funded Werritty, were furious
to find themselves dragged into the media spotlight.

Werritty’s first-class flights and hotel bills were paid for by a
not-for-profit firm he had set up called Pargav Ltd. The company was
bankrolled to the tune of £147,000 by wealthy donors, including a corporate
intelligence firm linked to Sri Lanka and a leading Israeli lobbyist.

Defence of Secretary for Britain Liam Fox leaves the Ministry of Defence building in London, Britain, 13 October 2011

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Last night one of the funders, venture capitalist Jon Moulton, revealed:
“After the election I was asked by Dr Fox to provide funds to a non-profit
group called Pargav.” Werritty was also indirectly funded by millionaire
Tory donor Michael Hintze.

The Financial Times revealed yesterday that Mr Hintze’s hedge fund CQS
invested in a US firm which benefited from Dr Fox’s decision to scrap
Britain’s Nimrod spy planes.

The Defence Secretary’s departure also came just two days before he was due to
join the PM in Royal Wootton Bassett for a ceremony to mark the Wiltshire
town’s new title.

There were fears the event would be overshadowed by the scandal. But Tory
chiefs and military top brass had already concluded he could not cling on.

Senior Tory MPs had given their backing last Monday in the Commons. But they
changed their minds in the week due to the sheer weight of allegations that
continued to emerge.

On Wednesday, The Sun revealed how Tory chiefs had covered up the fact a
younger man was staying overnight at Dr Fox’s flat when he was burgled last
year.

Once Downing Street had found out Dr Fox no longer carried the confidence of
military top brass, his career at the MoD was finished.

Former head of the Army General Sir Richard Dannatt last night said he was
“right to go”. He said: “Liam Fox fell short of the standards he had set and
it was honourable and right that he should go.”

Dr Fox kept a low profile as he returned to his constituency home in
Tickenham, North Somerset, last night. He arrived in the back seat of a
black BMW with the window blinds drawn just after 7pm.

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By TOM NEWTON DUNN, Political Editor

ALASTAIR Campbell’s “11-day rule” says that if a minister’s troubles are on
the front pages for 11 days he has to go.

Today would have been Day 11 for Dr Fox, so he was bang on time.

All week, he was too afraid — or too arrogant — to answer mounting questions
over his working relationship with Adam Werritty. That sealed his downfall.

And the verdict on his 17 months in office is, to say the least, mixed.

To his credit, he fought a bloody battle with George Osborne to limit insane
20 per cent defence cuts while we were still involved in two wars. But it
was a fight he was ultimately to lose.

He was doing a good job shaking up the hopelessly inefficient MoD. And his
vision for where Britain needed to be in the world put the skittish PM to
shame.

But was his heart really in the right place for the troops? Every senior
soldier, sailor and airman I have spoken to didn’t think so. For Dr Fox, it
was always more about world politics than their cares and issues.

So what can Our Boys expect from new man Philip Hammond? He’s a ruthless
accountant with little sympathy for military tradition so there will be no
reprieve from cuts — just more of them.

When well-liked Michael Portillo quit the MoD, a few grown men shed a tear. Dr
Fox was a decent bloke. But nobody will be crying for him today.

myView

By TREVOR KAVANAGH, Associate Editor

LIAM Fox’s position as Defence Secretary was untenable and his drawn-out
resignation inevitable from the moment details of his relationship with Adam
Werritty emerged last weekend.

His position carries with it some of the most sensitive decision-making and
diplomacy.

The MoD deals with military matters of the utmost secrecy as well as
procurement and purchasing decisions involving tens of billions of pounds.
This means Dr Fox could not afford the slightest question mark over his
integrity or choice of advisers.

To allow Werritty to join him at top-level talks with key associates who were
wrongly led to believe he was a positively-vetted adviser was crass
stupidity.

The Sun has always held Dr Fox in high regard. But his attempts on Monday to
cling to office was an act of self-delusion.

David Cameron could be criticised for not acting more ruthlessly. But it is
probably best for the PM that Dr Fox shot himself.

As I correctly predicted, Philip Hammond filled Dr Fox’s shoes, while Justine
Greening is the new Cabinet woman.

It could now be the opportunity for a major Cabinet reshuffle.

Mr Cameron should rid himself of troublesome Justice Secretary Ken Clarke.