Two cabinet ministers, Alan Johnson and Patricia Hewitt, have become embroiled in a row about Tony Blair’s £5 billion city academies programme after it emerged that they held meetings with academy sponsors.

They held the meetings in their constituencies at the same time as their departments were involved in policy decisions that could affect the potential sponsors. Several junior ministers also had similar dealings with academy sponsors.

Sir Alistair Graham, chairman of the standards committee, is to be asked to investigate. The ministerial code of conduct stipulates that ministers must separate their local constituency work from their official government business.

Norman Baker, the Liberal Democrat MP who will ask Graham to investigate, said: “The creation of academies in this way raises questions over conflicts of interest.”

Police are already investigating whether sponsors may have been offered honours in return for backing academies, following a Sunday Times investigation.

Johnson, the former minister at the Department of Trade and Industry who became education secretary in May, held academy talks with Adrian Beecroft, a venture capitalist whose firm was facing the possibility of a DTI investigation into its conduct.

Beecroft, chief investment officer of Apax Partners, personally pledged £2m to Pickering High school in Johnson’s constituency of Kingston upon Hull West.

At the time that the sponsorship was negotiated, the DTI was under pressure to investigate a deal involving Apax that resulted in more than 500 workers at British United Shoe Machinery losing their pensions.

Hewitt, who was Johnson’s predecessor at the trade department, was reported in June 2005 to be in favour of an inquiry and to be talking to Johnson about it. But Apax was never investigated.

Hewitt, now health secretary, has also confirmed a direct involvement in the academies programme. She held talks over plans for New College, an academy in Leicester sponsored by David Samworth, a local businessman. Hewitt admits meeting Samworth on “several occasions” but states that she did not solicit any sponsorship.

Samworth Brothers is the maker of Ginsters pasties, which could be affected if Hewitt imposed advertising restrictions and health warnings.

A spokeswoman for Hewitt said: “With regard to New College, yes she is obviously involved with the proposal . . . as a constituency activity and trying to take it forward.

“But she hasn’t been involved and wouldn’t expect to be involved in fund arrangement issues. She has met the Samworths.”

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