London assembly vows to continue funds inquiry

By Tim Castle

LONDON (Reuters) - The London Assembly vowed on Wednesday to continue its investigation into accusations of the misuse of public funds following the resignation of a close aide of Mayor Ken Livingstone.

Lee Jasper, the mayor's race adviser, quit on Tuesday after the London Evening Standard published allegations surrounding intimate e-mails between himself and a woman involved with organisations which he had recommended receive more than 100,000 pounds of grants.

He said in his resignation letter that he wanted to put a stop to a "relentless" media campaign.

His departure came a day before he was due to appear before the assembly as part of its investigation into allegations over London Development Agency (LDA) grants.

The Chair of the London Assembly, Sally Hamwee, said in a statement: "The London Assembly is very disappointed that it will not have the opportunity to question Lee Jasper."

The Liberal Democrat member added: "This assembly will not be deflected from continuing to investigate whether London taxpayers' money has been properly and effectively spent.

"The assembly's investigation... raises real concerns about how this mayor uses his office and how some of his senior advisers conduct themselves."

Livingstone is running for a third term as mayor in elections on May 1 in a race against Boris Johnson, his Conservative rival. Opinion polls show them neck and neck.