A businessman appointed by David Cameron to head a multibillion-pound quango has been forced to step down after it was disclosed that he was bankrupt.
A Government spokesman said Tony Caplin - a former Conservative Party chief operating officer - had resigned as chairman of the Public Works Loans Board (PWLB) which is responsible for £60 billion of loans in infrastructure projects.
The Mail on Sunday reported that Number 10 had been forced to act after an investigation it carried out revealed he had been made bankrupt in 2012.
A Government spokesman said: "He should have declared he was bankrupt. This has been pointed out to him and as a result he has resigned."
Senior Labour MP Margaret Hodge, who chairs the Commons Public Accounts Committee, told The Mail on Sunday: "This raises serious questions which should be investigated."