Duncan Smith faces fresh pressure to sack chief executive

Iain Duncan Smith was under growing pressure yesterday from Tory MPs to sack the party's chief executive after fresh allegations about Barry Legg's involvement in the Westminster Council scandals of the 1980s.

Derek Conway, Tory MP for Old Bexley and Sidcup, said the party leader had made "an error of judgement" in appointing his old friend to run Conservative Central Office.

Next week, Mr Duncan Smith will come under pressure from members of the Conservative Party's ruling body to get rid of Mr Legg, who was appointed in February. The 17-member board, which was not consulted about his appointment, will debate whether to approve his position. Some members are expected to call for him to be replaced.

An official investigation into the 1980s "homes-for-votes" affair in Westminster alleged that Mr Legg – with Dame Shirley Porter, the council leader – was connected to an "unlawful, disgraceful and improper" scheme. Mr Legg was later cleared by the High Court and exempted from paying part of the £26m surcharge.

Yesterday, Mr Legg was accused of involvement in another 1980s Westminster Council scandal that saw homeless people housed in tower blocks polluted with asbestos. It was alleged that Mr Legg, a former MP, chaired a meeting where there was a discussion about putting more than 200 tenants in two high-rise blocks where asbestos had been found. Yesterday, campaigners said Mr Legg, who said he cannot recall the scheme, was present at meetings where the move was discussed.

Jonathan Rosenberg, a local campaigner who wants the district auditor to look into the affair, said: "Barry Legg has said he can't remember any of the gerrymandering or the asbestos [affairs]. But as far as we know from the minutes that are available, he was present when this was discussed. All the minutes from early January 1989 until the end of March we can recover show that he was present. This issue won't go away."

The Conservative Party leapt to Mr Legg's defence yesterday. A party spokesman said the allegations against Mr Legg were "without foundation", and he added: "He does not recall chairing this meeting. He was not chairman of housing. It was not his brief. He doesn't believe he would have done anything that deliberately put people at risk."

Mr Conway criticised Mr Duncan Smith on BBC Radio 4's Today programme. "In my experience, when you appoint chums to jobs like that it nearly always ends in tears," he said. "Against the advice of many and the wishes of most, he [Mr Legg] was appointed chief executive of the Conservative Party. The board of the Conservative Party is responsible for endorsing that. I presume they know all about this matter [the asbestos tower blocks claims]," he said.

"And if they don't, then no doubt they will summon Mr Legg to their meeting and have him explain himself. I think it is a wrong appointment and I think he [Mr Duncan Smith] has allowed friendship to cloud his judgement, frankly, and I think that is wrong."