Ken rebuffed in demand for Jasper police probe

The development came minutes after Ken Livingstone insisted that police enquiries were continuing.

But at lunchtime today, a Met spokeswoman said there was effectively no criminal inquiry into Mr Jasper.

The Mayor, who fears the scandal will hurt his campaign for re-election, had asked the police to investigate whether Mr Jasper, his £120,000-a-year policing and equalities director, was guilty of criminal activity.

However, the Standard has never suggested that the police should be called in over the allocation of more than £3 million of London Development Agency grants to organisations linked to Mr Jasper or his associates.

Our stories have questioned whether there are proper accounts for the cash, which would be a matter for the LDA or the District Auditor.

Mr Livingstone revealed today he had drawn two matters to the police's attention - an Evening Standard headline from December, "Mayor's aide and missing millions", and an interview Tory group leader Richard Barnes had given to the BBC alleging a "tide of corruption"-was lapping at the Mayor's door. Today the Met spokeswoman confirmed police had received a letter from the Mayor asking them to consider the conduct of an individual in connection with allegations of fraud involving six organisations. However, her statement added: "To date, there have been no criminal allegations reported to us in connection with this individual."

Mr Livingstone, who was appearing before the London Assembly this morning, was taken aback when he was challenged on the news by Damian Hockney, leader of the One London party.

The Mayor apologised if he was out of touch, saying he had been at his sister's wedding yesterday.

He added that the Met statement "will be news to the Evening Standard and Richard Barnes and everybody else who is making these smears".

But he rejected Liberal Democrat demands for him to reinstate Mr Jasper, which his critics want to stop the matter being brushed under the carpet.

Mr Livingstone added: "Let's not rush to judgement. Let's take the rest of this week. If anybody has any evidence against Lee Jasper, bring it to the police. Lee Jasper has done nothing illegal."

Mr Hockney said: "This whole affair has to be completely opened up. Nobody can hide behind a criminal investigation because there isn't one." He added: "If no crime was alleged in his letter [to the Met], how did the Mayor imagine an investigation would be launched?"

Lib-Dem leader Mike Tuffrey has asked the Mayor to release the letter.