Co-chairman of the Conservative Party Baroness Warsi has been cleared by a Parliamentary watchdog over her expenses, after a probe into whether she claimed for overnight accomodation even though she wasn't paying rent.
The Tory party says that the Lords Commissioner for Standards has dismissed the allegations, which involved payments to her friend and special adviser Naweed Khan, for nights she stayed at a property in Acton in West London.
The property's owner, GP and former Conservative donor Wafik Moustafa, denied receiving any income from either Lady Warsi or Mr Khan during the time of her stay in 2008. At the time, she was claiming Lords subsistence of £165.50 a night.
The revelation that Warsi is in the clear comes after she was also found to have not committed a serious breach of the ministerial code in allowing a business friend to accompany her on an official trip to Pakistan.
David Cameron told reporters on Thursday lunchtime: "I am pleased these allegations have been dismissed by the Lords Commissioner. With elections for Police and Crime Commissioners in the autumn, this will be a big summer of campaigning for the Conservative Party. As Co-Chairman, Sayeeda will be leading that campaign."
There has been mounting speculation that Warsi would lose her job as Tory co-chair in the looming reshuffle, expected to take place early in September.
The only female Muslim in the cabinet has been tipped to replace either Caroline Spelman at DEFRA or possibly Owen Paterson at the Northern Ireland Office, but this was largely dependent on Warsi being cleared of the two separate probes which have overshadowed her for several weeks. Labour had called on her to resign while the investigations took place, Warsi refused.
The disclosure on Thursday will come as a significant relief for David Cameron, who now finds all of his Cabinet ministers are largely in the clear after allegations dogged both Warsi and Jeremy Hunt for much of the spring.
Warsi remains a divisive figure in the Conservative Party, with some questioning her political judgement after a string of outspoken comments, including claims that Britain was being undermined by "militant secularisation" and that electoral fraud in Asian communities cost the Tories seats at the last general election.
But she also has key supporters at the top of government, including Justice Secretary Ken Clarke. He leapt to Warsi's defence last month, accusing the media of acting as a "lynch mob" against her.