Labour calls for Shapps to be suspended from government and Tory roles

Yesterday is was revealed that Police believe Tory Chairman Grant Shapps was linked to activities that “may constitute an offence of fraud” over his questionable internet business How To Corp. In the wake of these allegations, Shadow Cabinet Office Minister Michael Dugher has written to the Prime Minister calling on him to suspend Shapps and launch an investigation:

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Dear David Cameron,

I am writing to you regarding the investigation by the Metropolitan Police of Grant Shapps MP, and activities he undertook running an internet marketing firm, How to Corp, which he founded and owned, though he later transferred into the name of his wife Belinda. Some of those activities were carried out under the name Michael Green.

Mr Shapps is described on the No 10 website as Minister Without Portfolio, with the following responsibilities:

• Responsibilities of the Minister without Portfolio include contributing to the government’s policy and decision making processes.

He is therefore bound by the Ministerial Code of conduct. In addition he is Chairman of the Tory Party.

How To Corp offered a software package to customers which takes content from the websites of other web users, without their permission, puts them onto the customer’s website with a view to the customer passing the content off as their own in order to place the customers’ website higher up the Google order when key words are fed into Google.

There appears no dispute from Mr Shapps that such a software package was offered by his company (subsequently transferred into the name of his wife Belinda). Such a software system would allow its users to mislead those who viewed websites which incorporated material snatched by the software package into believing this was genuine original material, and their website genuinely merited its Google ranking.

The Metropolitan Police have stated in correspondence that they have legal advice that the business activities that Mr Shapps was associated with “may constitute an offence of fraud, amongst others”. They have not specified what the other offences that may have taken place are.

Their conclusion that the business activities with which Mr Shapps was associated may constitute an offence of fraud is entirely understandable in the light of the fact that How to Corp was engaged in selling a product which was allegedly designed to mislead web users.

They go on to say that the reason they are not proceeding with a criminal investigation despite this legal advice is that they could “not overcome the evidential barriers that we face”. In that context you will be aware that material was removed from How To Corps website when the public were made aware of this issue in 2012 and that in an interview on Channel 4 news last night Mr Shapps again refused to answer basic questions about the allegations against him.

It is highly unusual for the police to indicate that a serious crime may have been committed, but that they will not proceed further because of evidential barriers.

In the light of the facts that are known and are effectively unchallenged, and in the light of the police’s statement that a fraud may have been committed, it appears that, as a minimum, if standards in public life are to be maintained, a proper investigation must now be carried out on your behalf to determine whether Mr Shapps has been guilty either of a crime or of discreditable conduct.  And moreover, if the Code’s principles are to be adhered to, Mr Shapps should offer a full explanation of the activities of How To Corp and deal with the allegation it may have committed fraud.

The Prime Minister can use the Independent Adviser on the Ministerial Code to conduct the investigation.

In many cases a decision by the police not to proceed further would close a matter, but not where the police, as in this case, specifically and unusually assert that a fraud may have been committed.

Please confirm that you will initiate such an investigation immediately to ensure that those close to you were not engaged in criminal activity, and that in the meantime, while such an investigation is pending, you suspend Mr Shapps from his post as Minister Without Portfolio and as Chairman of the Conservative Party.

I regret that this is the only tenable approach while these important allegations are dealt with, and I would be grateful for a reply as soon as possible.

Yours ever,

Michael Dugher MP

Shadow Minister for the Cabinet Office