Ministers accused of Blunkett cover-up

The Government faced fresh allegations of a cover-up over the David Blunkett "Nannygate" affair today as it emerged that a "killer fax" had been mysteriously shredded.

But staff in the Immigration and Nationality Department (IND) in Croydon have revealed that the incriminating document was destroyed.

The Tories have already asked for a full explanation of how officials at the Home Office and the IND failed to recollect such messages had been sent.

Sir Alan Budd's inquiry into the affair, which is expected to report next week, triggered the Home Secretary's resignation when it unearthed evidence that the fax and email had been sent from his private office.

Mr Blunkett had steadfastly denied claims that his office had in any way suggested to immigration chiefs that special treatment should be given to the visa application.

Mrs Quinn wanted the case speeding up after Miss Casalme received a letter warning she would have to wait up to a year. Following intervention by Mr Blunkett's office, she was granted indefinite leave to stay in the UK within only 19 days. The hunt is now on for the identity of the civil servants involved. Mr Blunkett says he forgot he had included the nanny's letter in his ministerial box, but shadow home secretary David Davis has pointed out that it "stretches credulity" to believe every single official also forgot about the intervention.

Amid the chaos of Mr Blunkett's resignation on Wednesday night, the Home Office admitted the email was sent by a female civil servant to the IND asking about the application's progress on 8 May - four days before it was granted. One email between the Home Office and immigration chiefs also stated: "No favours, but quicker."

It also appears that Miss Casalme's letter informing her of a 12-month delay was faxed to the private office of IND chief Bill Jeffrey from Mr Blunkett's private office. Sir Alan has been told that the fax and any covering letter have been "lost".

Mr Blunkett is to face further humiliation next week when a Parliamentary watchdog criticises his gift of free rail tickets to his former lover.

The former home secretary accepts he breached the rules and has already repaid the ?180 cost of the special travel warrants intended for MPs' spouses. Many MPs felt it was this action, as much as Mr Blunkett's role in "Nannygate", that damned him because abuse of allowances would be a sacking offence for police chiefs, council bosses or army officers. The report by Sir Philip Mawer, the Parliamentary Commissioner for Standards, is expected on Monday or Tuesday.

Mr Blunkett will almost certainly have to stand up in the Commons in the new year and make a personal apology about the rule breach. Some MPs claim he may combine the apology with a personal statement on his resignation.

Sir Philip's report would be a double blow as Sir Alan's separate inquiry into the "Nannygate" allegations is also expected by the time the Commons rises for the Christmas break next Tuesday.

The Evening Standard understands that several Home Office officials were ready to quit in protest if Mr Blunkett had been cleared by the Budd inquiry and civil servants had got the blame instead.

Although several Cabinet colleagues believe Mr Blunkett could make a comeback after the next general election and once his paternity-suit is settled in court, any findings of improper conduct would almost certainly kill off his political career.

Sir Alan appears to have been almost ready to close his investigation without finding any trace of the damning documents and emails early this week.

He decided to re-interview around five key officials after the Sunday Times newspaper alleged Mr Blunkett told officials about the nanny's case at a meeting to discuss backlog clearances. Mr Blunkett's aides denied he ever raised the case directly with officials.

Only when Sir Alan went back over the affair a second time did the real story suddenly emerge. Within hours of hearing his findings, the home secretary decided to fall on his sword.

Despite saying it could not prejudge the Budd inquiry, the Government authorised selected facts to be released while keeping others back - giving rise to speculation that the final report could contain damaging new details that it hoped would be overlooked once the initial resignation frenzy was over.

One issue still unresolved is that of who emailed the Immigration and Nationality Department director general Bill Jeffrey saying the nanny's visa should be processed with "no favours, but slightly quicker" and what was the reply.

John Gieve, permanent secretary at the Home Office, is also under scrutiny because he was said to have personally "signed off" as accurate the initial public statement by Mr Blunkett denying having influenced the nanny's case and claiming only to have been involved when an application was first sent in.