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Philip Hammond has warned that former military chiefs may have their access to MoD officials withdrawn after a Sunday Times sting filmed retired top brass claiming they could influence arms deals.
The Defence Secretary told the Andrew Marr Show that officers had “no influence” over such deals, but said he was prepared to shut down access if necessary.
“If they’re abusing that access for commercial purposes, we will have to tighten it up, or potentially shut it down.”
The paper says its three-month investigation found several former generals available for hire as lobbyists for defence contractors, despite rules banning the practice for two years after they leave the MoD.
Labour's Shadow Defence Jim Murphy urged ministers to get to the bottom of "this seedy, grubby business".
"We need to be absolutely certain not a single penny piece of taxpayers money has been influenced by this sort of shady practice," he told Sky News.
But one of the ex-MoD officials implicated in the sting has hit back this morning. Lord Stirrup told Sky News' Murnaghan: "I've never lobbied for money. I don't lobby."
14/10/2012 on Sky News
Summaries and transcripts from TV and radio
3 minutes ago on The World at One, BBC Radio 4
14 minutes ago on World at One, BBC Radio 4
19 minutes ago on Boulton & Co, Sky News