The Executive Chairman of Capita - the outsourcing giant that runs dozens of Government projects - has quit the firm he founded after it emerged he lent the Labour Party one million quid.
Rod Aldridge denies he did anything wrong and described as "spurious" any suggestion "that this loan has resulted in the Group being awarded government contracts".
His decision to step down comes as the UK Government continues to fight off allegations of sleaze and "cash for honours".
In a statement to the Stock Exchange today Aldridge said that as founder and Chairman of Capita, "I have always seen it as my role to ensure that the Group enjoys the highest possible standing and operates with total integrity".
"At present, the Group's reputation is being questioned because of my personal decision to lend money to the Labour Party. As I have made clear, this was entirely my own decision as an individual, made in good faith as a long standing supporter of the Party. There have been suggestions that this loan has resulted in the Group being awarded government contracts. This is entirely spurious.
"Whilst anyone who is associated with the public procurement process would understand that this view has no credibility, I do not want this misconception to continue, as I remain passionate about the Group's well-being," he said. ®