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Scotland Yard today launched a fraud investigation into allegations that one of Boris Johnson's key deputies misused his corporate credit card.
Detectives will question Ian Clement over claims revealed by the Standard that he used his City Hall expenses to entertain his 23-year-old lover - but claimed for buying meals for Tory councillors.
He could face jail if convicted of an offence of fraud or of misconduct in public office.
Mr Clement, 44, dramatically quit on Monday after City Hall admitted there were serious “discrepancies” in his expense claims.
Then the Standard revealed how Mr Clement falsely claimed expenses for three restaurant meals he said were with Tory council leaders but all of whom denied they were present.
On at least two occasions the deputy allegedly entertained his lover 23-year-old Claire Dowson, a Conservative party agent.
Mr Clement claimed for two lunches totalling £105, with two Tory council leaders in his official capacity.
He said that one lunch, at Pizza Express in Barnet on 31 October, was with the leader of Enfield council Michael Rye. But Mr Rye said later the lunch did not take place.
The deputy also claimed a £73.50 lunch for two which he said was with Mike Freer, leader of Barnet council on 5 November. Mr Freer did not have lunch with Mr Clement that day because he was at a funeral in Inverness. Both the lunches are understood to have been with Ms Dowson.
Mr Clement also claimed £51.70 for what he said was “dinner with Merrick Cockell”, leader of Kensington and Chelsea council, at the New Mayflower Chinese restaurant in the West End on 6 November last year. City Hall sources later told the Standard that Mr Cockell had contacted officials to say he had never been to the restaurant.
The scandal also engulfed Boris Johnson when it emerged that he had warned Mr Clement about his credit card use nearly a year ago.
The Mayor reprimanded his deputy last August when he discovered that he had used his City Hall credit card to upgrade his flight to the Beijing Olympics. Mr Johnson travelled economy.
Mr Johnson is facing questions over why he did not intervene sooner but initially backed his deputy when it emerged he used his corporate card to buy a car stereo for his Jaguar and pay a £200 grocery bill at Tesco.
At the time the Mayor said Mr Clement's actions were inappropriate and crass' but there had been no dishonesty. Four days later his deputy was summmoned to City Hal and effectively sacked by Mr Johnson.
The police inquiry will be carried out by detectives from the Yard's specialist Economic and Specialist Crime Unit - the same squad that is investigating fraud allegations involving MPs and peers' expenses.
The main complaint against Mr Clement was referred to the police by the GLA director of finance Martin Clarke.
A spokeswoman for the Mayor's office said they could not comment on what was now a formal police investigation but said : “We will co-operate fully with the inquiry. “
Five Scotland Yard detectives have been prosecuted for misusing credit cards on duty. One was jailed for 10 months.
