Jasper to be reinstated if no criminal activity found

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The Mayor suspended Mr Jasper, his £120,000 a year policing and equalities adviser, following allegations that upto £3 million in public money was misspent on community groups.

In what critics believe was an attempt to shut-down the controversy during the l election campaign, Mr Livingstone asked the police to investigate whether his aide had been involved in criminal activity.

But Scotland Yard announced last week that although they were looking into allegations of fraud involving six different groups, they had received no allegations about Mr Jasper.

Mr Livingstone, who is facing Tory Boris Johnson and Liberal Democrat Brian Paddick in the May 1 election for Mayor, has now admitted that the police are not investigating his adviser.