Audit office head at centre of £390,000 expenses row quit

Sir John Bourn's announcement marked the end of a turbulent six months during which he has found himself mired in controversy.

The head of the National Audit Office faced calls to resign after the Daily Mail revealed he had racked up £365,000 in travel expenses and £27,000 in restaurant bills over the last three years.

Sir John's expense account, which is paid for by the taxpayer, included first class flights to exotic climes, stays in five star hotels - often accompanied by his wife - and numerous dinners at top London restaurants.

Until last May his reputation was impeccable.

The Auditor and Comptroller General "was regarded as being up there with Moses', said one MP who has worked closely with him.

"He is very grand, very authoritative, incredibly respected. When he says something it's regarded as being writ on tablets of stone."

However, Sir John, 73, found himself under particular criticism over his links to Britain's defence industry.

Anti-sleaze MP Norman Baker said his position had been ' compromised' after he accepted a visit to the British Grand Prix from BAe Systems - the defence firm currently under investigation for corruption in the U.S.

Last month, Sir John attended an event hosted by the Ministry of Defence, which owns 19 per cent of controversial defence firm QinetiQ. He also dined at the Savoy as a guest of the Society of British Aerospace Companies, which counts the contractor among its members.

The Auditor General attended the events despite the imminent publication of a potentially explosive NAO report on QinetiQ's February 2006 float, which is expected to be critical of both the MoD and the firm's senior management.

The report was due to be published over the summer, but was pushed back, prompting fears the final copy will be a watered down version of an earlier draft.

In a statement, Sir John said it had been a 'privilege' to lead the NAO and insisted he was stepping down in January to avoid any clash between his role as head of the NAO and chairman of the Professional Oversight Board, which regulates the auditing profession.

However, senior Government figures said Sir John's role had become untenable following the expenses row. One Whitehall source said: "Wiser heads in Government felt it was all becoming a bit embarrassing. It is the right time for him to go."

Senior Tory MP Richard Bacon, who sits on the Public Accounts Committee, added "His expenses were excessive and unjustified and the decision to accept hospitality from the likes of BAe was an error of judgment.

"But it is important not to obscure what he has achieved during his time at the NAO, where he has done a tremendous job."

Sir John is a career civil servant who has worked for the establishment for decades.

Last March, he was appointed by Tony Blair to investigate whether ministers have broken conduct rules.

His unblemished record came under the spotlight when the extraordinary details of his globetrotting were published in May.

The figures showed Sir John had travelled to more than 45 countries in the last three years - including Mauritius and the Bahamas - at the taxpayers' expense.

His wife Lady Bourn joined him on many of the visits.

Sir John was cleared of any impropriety following an investigation by the Public Accounts Commission, but the NAO has since announced that he would no longer take first class flights or travel with his wife without parliamentary approval.

Mr Baker said: "Sir John Bourn has made the correct decision and he should be thanked for the work he has done.

"But the next incumbent cannot end up in a position where he embarrasses the National Audit Office through expenses claims and perceived conflicts of interest."

An NAO spokesman said the row of Sir John's expenses had not been a factor in his decision to step down. He insisted: "He has done the job for the last 20 years, he is over 70 and he has seen the NAO through a great period of change."