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BY ADAM SMITH

ANCHOR CHRISTINA HARTMAN

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British Prime David Cameron has had his first Cabinet shake-up. Secretary of Defense Liam Fox resigned Friday amid claims that his friend Adam Werritty got too involved with official business. The BBC explains part of the problem.

“Adam Werritty was Fox’s best man, but he was much more than that ... Though not employed by the government or the Tory party, his business card said he was an advisor too. Fox denied it despite the revelation the two may have met on no fewer than 18 trips abroad, including in Dubai, Singapore and Sri Lanka.”

The charges against Fox don’t end there. There are accusations he and Werritty tried to set up their own private investment firm in Sri Lanka. The Guardian points out— this is against the UK’s official policy.

“The government has adopted an arm's-length policy on Sri Lanka, calling for an independent inquiry into alleged war crimes. Since 2006 [the United Kingdom] has also had a policy to limit development work to urgent humanitarian assistance and ‘de-mining’ areas affected by the civil war.”

But trips abroad with Fox were not the only problem. As The Telegraph writes, Fox also faces allegations he used his position to better his friend’s financial situation.

“Detailed disclosures showed Mr. Werritty’s activities were funded by companies and individuals who stood to benefit from Government decisions … a City tycoon who provided money for Mr. Werritty revealed that he had personally been asked by the Defence Secretary to give cash to his friend’s firm.”

Even for Fox’s fellow Conservatives, that disclosure was the final straw. The Daily Mail suggests pressure from within the party led to Fox’s decision to step down.

“Senior figures on the Tory backbenches had also let it be known that they thought [Dr Fox] should go. … Knowing he might be forced out, Dr Fox telephoned David Cameron at around 2.30pm to say he would quit.”

In an interview with ITN, Prime Minister David Cameron avoids talking about the scandal, but expresses his regret over Fox’s resignation.

“I quite understand why Liam Fox has decided to resign, though obviously I’m sorry to see him go, because he did a good job at the Ministry of Defense, clearing up the mess left by the last government and giving good leadership to that department particularly while we’ve been in action in Libya and also, of course, in Afghanistan as well.”

Cameron has appointed Transportation Secretary Philip Hammond as Fox’s replacement. Liam Fox will retain his position as a Member of Parliament.

Transcript by Newsy