Sayeeda Warsi, the Government minister and co-chairman of the Conservative Party, has been found guilty of a 'minor breach' of the ministerial code for taking a business associate on an official trip to Pakistan.
A Sunday Telegraph investigation had revealed Baroness Warsi - whose parents hail from Pakistan - had been accompanied by businessman and personal friend Abid Hussain on a government visit to Pakistan in July 2010, in contravention of the ministerial code of ethics.
The House of Lords Commissioner on Standards however, found the Baroness had "not used her office for personal financial gain".
Prime Minister David Cameron leapt to Baroness Warsi's defence, saying she could keep her job in the Cabinet because "she had not benefited personally" from the trip and because she was a "great asset" to the government.
Responding to the report by Commissioner Sir Alex Allan, Baroness Warsi said: "The allegations on this matter were untrue and unsubstantiated and I am pleased that Sir Alex's report has confirmed that."
Lady Warsi still faces a further accusation relating to expenses claims.
The Standards Commissioner is set to look into allegations that the Yorkshire-based politician claimed £165.00 per night from the taxpayer for accommodation whilst living rent-free with her friend and Tory official Naweed Khan in London.
She claims she made an "appropriate payment" to Mr Khan for the trouble of putting her up.
Mr Khan however, denies he was ever paid by Baroness Warsi.
- Viji Alles