Gordon Brown's moral leadership over Zimbabwe has been questioned after he announced that the head of a mining company which is investing £200 million there will serve on a panel of senior business advisers.

The Prime Minister's decision to reappoint Cynthia Carroll, the American chief executive of Anglo American, to his prestigious Business Council, prompted accusations from Nick Clegg, the Liberal Democrat leader, that Mr Brown had ducked an opportunity for “real action” over Zimbabwe.

Downing Street says it has been given reassurances by Anglo American. The Movement for Democratic Change, the Zimbabwean opposition party, however, says companies such as Anglo are helping to prop up the Mugabe regime through the transfer of foreign exchange and payments for mining licences.

The announcement came amid signs of disarray in the Government over the advice being given to companies that operate in Zimbabwe.

Yesterday The Times disclosed that the Foreign and Commonwealth Office has been telling businesses that its official guidance has not changed, and that while companies should not assist Mugabe's regime, Britain does not want to punish the people of Zimbabwe further by withdrawing investment at this stage.

However, in a sign that Mr Brown favours a tougher approach, a Downing Street spokesman said companies in Zimbabwe “ought to consider carefully under the current political situation that it is right to do business”. Mr Clegg said: “How can Gordon Brown possibly hope to take a principled stand on Zimbabwean investments while taking advice from one of the country's biggest investors?

“The reappointment...makes a mockery of Gordon Brown's fine words. This failure to follow up talk with real action is precisely what has allowed this vile regime to remain in power for so long.”

Times Recommends

• Shrinking violet Gordon turns into raging bull
• Eddie Izzard: 'I keep thinking if I do all these things she'll come back'
• Is sex for the disabled the last taboo?