Sir Malcolm referred himself to the parliamentary commissioner for standards and has had the party whip suspended, pending an investigation into the cash for access allegations. He says he has broken no rules.
Undercover reporters for the Daily Telegraph and Channel 4’s Dispatches posed as staff from a fake Chinese firm where Sir Malcolm also claimed he is “self-employed. So nobody pays me a salary.” He earns £67,000 for his role as an MP.
Sir Malcolm is a candidate in May’s general election and is also chairman of the intelligence and security committee - his position there will be decided by its members, not by the Tory Party.
Sir Malcolm told BBC2's Daily Politics: "I think that is meant to be a temporary matter."
Prime Minister David Cameron has said it is down to the members of the intelligence committee to decide whether Sir Malcolm continues as chairman or not, to which Sir Malcolm replied: "I don't expect the Prime Minister to reach conclusions when there have been allegations made."
It is understood the party will decide what to do with him quickly so that if he is cleared he can stand in the election.