Francis Elliott, Deputy Political Editor of The Times and Sam Coates
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Ken Livingstone has suspended one of his most senior advisers and referred allegations against him to the police.
The Mayor of London, however, said that the move was intended to enable Lee Jasper, his race and policing adviser, to clear his name.
Mr Livingstone has been increasingly embattled over claims of financial irregularities in publicly-funded organisations run by friends and associates of Mr Jasper.
Police are investigating six organisations funded by the London Development Agency (LDA) which hands out hundreds of millions of tax-payers’ cash each year.
With the London mayoralty elections just over two months away Mr Livingstone has chosen to cut adrift one of his closest advisers to limit any damage.
In a statement Mr Livingstone said that he had agreed to a request by Mr Jasper to suspend him and refer allegations to the police to help put a stop to what he called a “disgraceful political charade.”
He said: “I believe this investigation will exonerate Lee Jasper and show this to be a shameful campaign.”
Mr Jasper claimed the London Assembly has deliberately refused to hold any hearings on the matter until March to “string out” the allegations.
He said: “The deliberate aim of this delay is not to achieve clarity but to string out a series of unfounded and poisonous allegations in the media, and investigation by the police will clear my name and put a stop to this.”
A spokesman for Scotland Yard said police will examine any material that is handed to it on any subject where there are claims of a criminal act in London.
Mr Jasper was linked to alleged funding irregularities at a series of London community projects in December. He denies any wrongdoing.
One newspaper claimed hundreds of thousands of pounds that had gone to the groups had not been accounted for.
An internal review by the London Development Authority cleared Mr Jasper last month. The London Assembly has since called for an independent inquiry. The LDA is still investigating the funding of 13 projects.
The issue has also raised questions over relationship between Mr Livingstone and his advisers and the power they wield at City Hall.
Boris Johnson, the Conservative Candidate for Mayor, said:
“This is an outrageous attempt to avoid scrutiny. It was only 12 hours ago that the Mayor informed us that he had full confidence in Mr Jasper. What has changed his mind?
“Mr Jasper has been suspended – presumably on full pay – until after the election, in the hope that the full facts will not come out."
Brian Paddick, the Liberal Democrat candidate, said: “If it is true that the Mayor has suspended Lee Jasper because of the criminal investigation, then this is a serious escalation of the situation regarding what is one of the Mayor's personal appointments. It casts serious doubt on the Mayor's judgment in terms of his selection of advisers.
“You can tell from Ken Livingstone's demeanour that he is seriously worried by the bad smell that is emanating from his own administration and his own advisers."
He added: “Because of the complexity of the allegations that have been made, it's unlikely that any of these investigations will be concluded by 1 May. What the voters of London have got to realise is that if they re-elect Ken Livingstone, the chances are they're in for a nasty shock in the months following the election.”
Mike Tuffrey, Leader of the London Assembly Liberal Democrats, said: “The Mayor has been adamant that Lee Jasper is innocent of all accusations brought against him in the media. If this is the case, why refer these allegations to the police? If the Mayor is certain that Lee Jasper has not acted illegally, surely he is wasting police time with this matter.
“The London Assembly has been demanding evidence on these allegations for a long time. Yet it was only last week that the London Assembly received over 900 pages of documents requested. These must be examined before we can conduct a proper scrutiny with Lee Jasper and other Mayoral adviser colleagues."

Sam Coates's blog about Westminster, politics and spin
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Since when were the police the official channel to use in order to clear one's name?
Why does he need a race and policing adviser in the first place?
I can't imagine Livingstone taking advice off anybody.
I thought the only thing he did was run a bus company and fleece poor motorists.
alan madox, wirral, ENGLAND
Livingstone's antics are very much akin to watching a performance of Hamlet without the Prince.
Robert, Kirk Ella,, Easy Yorks.,
Greater love hath no man that he lay down his friends for his life!
Jeremy Thorpe, commenting on Macmillan's 'Night of the Long Knives' in1962!
Sam, edinburgh,
Irrespective of the facts/allegations in this particular case, those of us familiar with rows over alleged impropriety in local government will recognise that it is much riskier for an incumbent political administration (such as Ken Livingstone and his allies) to refer the allegations to an independent investigator (perhaps an independent QC) rather than the police. The reason? An independent investigator may well reach a critical verdict regarding conflicts of interest (for instance, in a grant-giving process) without concluding that there has been a breach of the criminal law. Such a verdict is highly damaging politically. By contrast, the police have to look for evidence tending to show beyond reasonable doubt that a crime has been committed, and most administrative improprieties never meet the criteria. Hence, in all but a few cases, most experienced politicians consider that it is a much better bet to refer the matter to the police rather than in independent investigator.
Jordan Eakwall, London, UK
The prospect of Livingstone's demise is almost as pleasing as the imminent collapse of the Brown regime; both are buffoons unfit for any public responsibility.
Mouse, Brighton,
What all this sleaze malarkey obscures is the real issue: that Ken Livingstone still sponsors multiculturalism in its strong form, meaning segregated communities with their own informal but ever-increasing separate jurisdiction. Livingston doesn't seem to realise that this is now a totally discredited model for London and British society, as proved by the recent storm over the Archbishop of Canterbury's tragic appeasement of sharia law. 'E's a lovely man, is our Ken, and he was a good left-winger in the past, but he's now totally misguided on the jihadist-fascist threat.
Bob, London,
does anyone know what his incompetent unqualified puppetwas being paid? I have seen all this beore...he will claim racism and if that fails then incopetence and lack of knowledge of what was going on. It needs someone to pursue the truth and nail the guity. Just look at the standard of living of those involved and if this seems right then dig deep into all of their assets.....i am so pleased the Metropolitan Police have been called in.
Mario Zammo Ruffy, wanstead, london england
Ken Livingstone and his cronies have been found out for what they really are. They tax, waste and misspend huge amounts of money earned by hard working Londoners without any accountability. Ken Livingstone reminds of the character Napoleon from the novel Animal Farm, a totalitarian dictator who thinks he can get away with anything. If he put half as much effort and money into tackling London crime problems as he does in torturing motorists, he might have achieved something in the last 8 years. I agree with Boris Johnson, the sooner he is gone, the better London will be for it and we will get some real value for money for the taxes we give.
K Patel, London, UK
So his defense is that he knew nothing about how his underlings were misspending, if not stealing, public monies. "I'm not a criminal, just incompetent." I feel much better. Thanks, Ken.
R M, London, UK
It is absolutely shameful the depths some politicians will stoop to in order to slander and malign. This is obviously part of a well organised attempt to wrest power from Ken in the Capital. These politicians are supposed to be grown adults, instead they act like bickering children armed with nothing but slack-talk and gossip. With the mayoral elections looming, Lee may have done the right thing, in calling in the police. However, I fear he and Ken have fallen into a well orchestrated late-in-the "evening slandered" trap.
christopher Icha, London, England
"Ken's loony GLC"?? I take it this is from someone with first hand experience of having lived in "Ken's loony" London? My recollection, as a Londoner, of "Ken's loony" reign as leader of the "loony GLC" was that London at this time was a vibrant, exciting place to come into, that if there had been a plebiscite amongst the people of London at the time as to whther they wanted "Ken's loony GLC" to remain the vote would have been won by a massive majority. Perhaps question what is happening now if you wish, but set aside the Evening Standardesque anti-Ken knee-jerk.
Brian Capaloff, Falkirk, Scotland
Ken is a bad joke, but Londoners just can't stop voting for this unpleasant man. Hopefully this shocking waste of money will finally be the end him, but don't hold your breath. Anyone sick of the sight of the Low emissions signposts yet..?
Nic Ellis, London, UK
I totally agree with Boris Johnson's observations. This is an old Nu-Labour political tactic of sidelining a potentially embarrassing financial scandal, directly linked to Livingstone. Any journalist or votor asking questions about the affair, during the Mayoral elections, will simply be fobbed off with the standard answer '... the matter is sub judice as it is under investigation by the police...'. If Livingstone is re-elected just see how quickly his personally appointed adviser is reinstated.
Votors of London wake up, Livingstone is simply a free spending, unaccountable money grabbing dictator.
pw, Banstead, Surrey
So one of Ken's closest aides will be suspended from his official duties, although continuing to be paid his salary from taxpayers funds.
Forgive the cynic in me, but doesn't this just free him up to work full time on Ken's campaign for the mayoral elections whilst being paid from public funds?,
E Burgess, Slough,
Maybe Oondeners should get a Lee Jasper centre to remind them of the harm done by the race lobby. It could be sited next to the Stephen Lawrence Centre. (Without windows maybe?)
The Mogul, Gravesend, Kent
I wonder if Livingstone would have suspended him if the London Mayoral Elections weren't due to be held in may?
Teresa , London,
It looks more like Ken's loony GLC every day.
Ubi, Edinburgh, UK
The police are the best people to handle such investigation.
Any matter highlighted by the police that suggest criminality can be put to trial in a court of law. Kangaroo courts conducted by politically motivated groups at election time are something that went out of vogue in medieval times. Those making the allegations should also be investigated.
Jim Wills, Kuala Lumpur, Malaysia
I've yet to see smoke without there being a fire around somewhere!
Phil Baughen, Barnet, Herts