The MP for Fylde announced yesterday that he would not stand at the next election after the allegations that he had misused campaign funds were referred to Lancashire police.
The Conservatives said the internal investigation had not found any misuse of party funds and that the evidence it seen had shown all donations had been properly declared to both the Electoral Commission and parliamentary authorities.
However, its inquiry into the allegations, which Menzies denies, found the MP's behaviour had fallen below the standards required of any individual responsible for local campaign funds and may have breached the Nolan principles of public life.
Labour had accused the Tories of "sitting on their hands" for over three months after claims first emerged, while the Liberal Democrats called for the prime minister's independent adviser on ministers' interests to investigate the handling of the row.
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