The Guardian newspaper reports that the permanent secretary at the Ministry of Defence, Ursula Brennan, had previously warned the Defence secretary Liam Fox about the blurring of personal and professional relationship with Adam Werritty, on at least three occasions.
Brennan reportedly had raised concerns following Werritty's presence at a meeting in Dubai this Summer and told Fox to stop Werritty from using business cards claiming to be Fox's advisor.
In a bizarre twist, Fox announced on Thursday that he would be asking none other than Brennan to carry out an investigation the possibility of any breach of ministerial conduct.
"I've asked the permanent secretary to look into any of these wild allegations, and I'm very happy to stand by that investigation," said Fox.
This is not the fist time that Fox has been under scrutiny for a possible conflict of interests.
In March 2010, a BBC investigation revealed that Fox had visited Sri Lanka at the Sri Lankan government's expense, shortly before endorsing the regime in parliament in the UK.
See 'British MPs lobbied for Sri Lanka after junkets' (March 2010)
See also TG view 'Fox single-handedly undermines Britain's authority' (Dec 2010)