The government has rejected calls for an inquiry into the collapse of Metronet following an MP’s claims of corruption.

Last week Graham Stringer MP insisted that the relationship between Metronet and its subsidiary Trans4m, which carried out station renovations, “looked like real corruption”.

In evidence to the committee, transport secretary Ruth Kelly insisted the collapse of Metronet was due its poor corporate structure, not corruption.

It also emerged last week that Transport for London removed a commitment to underwrite 95% of Metronet’s borrowings, a move that effectively meant no private sector company would consider trying to buy it.