An influential committee of MPs is investigating allegations of sexual harassment and abuse in the British Embassy in Baghdad.

The Commons Foreign Affairs Select Committee has written to the Foreign and Commonwealth Office to ask for a full explanation of what happened at the embassy.

Concern has reached the highest levels of government after yesterday’s disclosures in The Times. Des Browne, the Defence Secretary, told MPs that he was taking a personal interest in the allegations.

An Iraqi cleaner and two cooks have alleged that a culture of sexual harassment, abuse and bullying exists at the embassy, according to testimony taken by officials within it last June and seen by The Times.

The cleaner said that a British contractor with KBR, the company hired to maintain the embassy’s premises, offered double her daily pay if she would stay the night with him. When she refused, she said, her pay was cut and she was later dismissed.

She made a complaint. The Foreign Office was informed and it allowed KBR to conduct its own investigation, which found that there was no case to answer.

The all-party committee of MPs decided to act after being approached by Samer Muscati, a former employee of Adam Smith International (ASI), a consultancy based in the embassy, who says that the cleaner approached him.

Mike Gapes, the chairman of the select committee, said: “We have already been contacted about this matter and have written to the Foreign Office about these issues and are waiting for a reply.”

He said that he did not have any comment to make on the allegations themselves, and the committee would decide whether to launch a full inquiry when it received a response.

Lynne Feathersone, a Liberal Democrat MP who campaigned over the issue of Iraqi interpreters, questioned the Foreign Office response. She said: “How Britain conducts itself overseas is of paramount importance. That’s often how we are judged. There seems to be a somewhat laissez-faire attitude from the Foreign Office, which should be taking matters such as these extremely seriously both to ensure the wellbeing of an individual but also the reputation of Britain overseas.”

MPs have also raised concerns on the floor of the House about the conduct of contractors. Andrew Mackinlay, the Labour MP for Thur-rock, asked Des Browne last month whether there was a “deficiency in our law” preventing proper investigation of such cases. At the time Mr Browne was unaware of the allegations.

On Tuesday Kim Howells, the Foreign Office minister, told Mr Mackinlay in the Commons that any person employed by an organisation contracted by the Foreign Office who was suspected of committing a crime in Iraq but who appeared immune to prosecution would be referred to the disciplinary authority “with a view to having them removed from our contract in Iraq”. He said that the Foreign Office would bring the matter to the attention of the British police or the authorities in the individual’s home country.

A Foreign Office spokesman insisted that it was right to leave the investigation to KBR. “We take all such allegations extremely seriously. As soon as we became aware of the allegations last year, we carried out an initial inquiry following a complaint. But the nature of the complaint meant it was appropriate for us to ask KBR to carry out an urgent investigation, which we discussed with them in detail.

“KBR conducted a full investigation, led by an HR professional. We have discussed this with them in detail and are satisfied that it was as thorough and professional.

“The investigation concluded that there was no evidence to support the allegations. The individuals who were the subject of the allegations were suspended and temporarily removed from post on full pay as soon as the transport from Baghdad allowed.”

KBR said last night that it had no further comment to add concerning its investigation.

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